REPURPOSE THE SPACE.
>> YOU ARE NOT IN CLUELESS,
WERE YOU?
THAT'S IT FOR US TODAY!
THANK YOU FOR JOINING US.
"BULLS & BEARS" STARTS NOW.
>> BREAKING NEWS, A SURPRISE
FROM NETFLIX SENDING THE STOCK
INTO THE RED AFTER HOURS.
THIS IS "BULLS & BEARS" WITH
MORE BIG HEADLINES JUST COMING
OUT RIGHT NOW.
I AM DAVID ASMAN GLAD YOU CAN
JOIN US DURING TODAY TO DISCUSS
THIS AND A LOT MORE, CHRISTINA,
LIZ, GARY AND JONATHAN, NETFLIX
NOT BRING IN THE KIND OF MONEY
LAST QUARTER THAT EVERYBODY WAS
EXPECTING.
LET'S GO STRAIGHT TO DEIRDRE
BOLTON IN THE NEWSROOM.
A LOT OF DISCUSSION ABOUT THE
NUMBERS I HAVE BEEN COMING OUT
AND REVISING THE NUMBERS.
EXPLAIN.
>> YES.
THERE WERE ONE PRINT IN
PARTICULAR THAT I WOULD THINK
THROUGH THE COMMUNITY IN THE
FIRST TWO MINUTES BUT WE
CORRECTED IT AND HERE IS WHAT
YOU GET.
A MIXED BAG OF TRICKS AS FAR AS
THE FOURTH QUARTER.
IF YOU LOOK AT EARNINGS,
NETFLIX DID EXCEED THE
EXPECTATIONS, VIEWERS CAN SEE
$0.30 A SHARE, $0.24 PER SHARE,
THAT WAS WHAT WAS EXPECTED.
IT IS HIGHER,
BETTER-THAN-EXPECTED.
IF YOU LOOK AT REVENUE, THIS IS
INITIALLY WHAT PRESSURED THE
STOCK YOU CAN STILL SEE IT
MOVING LOWER.
AFTER HOURS YOU HAD THE COMPANY
WITH A REVENUE OF 4.19 BILLION,
SLIGHTLY LIGHTER THAN WHAT THEY
WERE LOOKING FOR.
ALSO, MOST IMPORTANT, WE ALWAYS
TALK ABOUT FOR INVESTORS,
REALLY THE PICTURE GOING
FORWARD.
REVENUE FOR THE CURRENT
QUARTER, THE ONE WE ARE IN,
WILL BE A LITTLE BIT LATER THAN
EXPECTED.
4.19 IS WHAT NETFLIX SAYS IT IS
TRACKING TO RIGHT NOW.
WALL STREET HAD BEEN LOOKING
FOR GUIDANCE TO BE CONFIRMED AT
4.21 BILLION PRINT NOT A LOT
BUT ENOUGH TO GET THE RED ARROW
ON THE SCREEN.
ON THE PLUS SIDE FOR THE PEOPLE
THAT ARE BOLD AND REALLY LIKE
THE STOCK, IF YOU LOOK AT THE
NEXT AD SUBSCRIBER, HOW MANY
PEOPLE SIGNED UP, IF YOU LOOK
AT THE FOURTH QUARTER AND THE
CURRENT QUARTER, BOTH SETS OF
DATA SHOW LONG STORY SHORT,
MORE PEOPLE ARE SIGNING UP FOR
NETFLIX.
THAT'S A BIG POSITIVE.
YOU ALSO HAVE SOME ANALYSTS
BEGINNING TO PUBLISH THE OTHER
ALBATROSSES SOME OF BEEN
CONCERNED ABOUT IS THAT THE
COMPANY HAS THIS NET FREE CASH
FLOW WHICH IS NEGATIVE ABOUT $3
BILLION FROM 2 BILLION IN 2017.
AND A LOT ANALYSTS SAY WE
UNDERSTAND IS A LOT OF MONEY TO
MAKE THESE VERY POPULAR,
BLOCKBUSTER.
THERE IS BLACK MIRROR, THERE IS
BIRD BOX.
WHY ARE YOU GOING TO TURN THAT
FIGURE AROUND?
THEY SAY IT HAPPENS IN 2021.
FOR WHAT IT'S WORTH AFTER THIS
REPORT.
>> IT IS NOT TOO FAR AWAY.
FOLKS, WHAT IS THE BIG HEADLINE
HERE?
FOR NETFLIX.
ANY IDEA?
>> OKAY WITH A BIG HEMLINE,
THEY ARE LUCKY THAT THE MARKET
IS LOW RIGHT NOW BECAUSE NEXT
QUARTER EARNINGS WHICH MATTERS
MOST TO COMPANIES AND STOCKS,
EXPECTATIONS WERE $0.86 AND
THIS IS A WOEFUL $0.56.
THIS WAS DOWN 40 BUCKS IF THE
REPORT CAME OUT SIX WEEKS AGO
WHEN THE MARKET WAS IN TROUBLE.
THEY ARE LUCKY MARKETS ARE
ACTING BETTER RIGHT NOW.
>> HAVE TO ASK YOU, DESPITE
THIS AFTERNOON LITTLE DROP,
REALLY AN AMAZING RUN BACK FROM
-- IS THERE ANY TALK ABOUT
COMPETITION?
NETFLIX SAID THEY CLAIM ABOUT
10 PERCENT OF ALL U.S. SCREEN
TIME.
BUT EVERYONE FROM YOU KNOW, HBO
AND "FOX NATION", THEY ARE
NIPPING AT THEIR HEELS.
ARE THEY NOT?
>> THAT IS A GREAT POINT AND
MANY PEOPLE WOULD SAY, THE
STOCK IS ALREADY UP SOMETHING
LIKE 60 PERCENT.
AND IN THE PAST FEW WEEKS IS
HAD A GREAT RUN.
AND MORE AND MORE COMPETITION
IS COMING ONLINE.
OBVIOUSLY AMAZON ALREADY EXIST
BUT THE SURE POINT POINT, A LOT
OF PEOPLE ARE RELEASING
PRODUCTS.APPLE WORKED WITH
OPRAH, YOU HAVE HULU, AT&T,
COMCAST.
THERE ARE MORE AND MORE PLAYERS
THAT WILL COME IN.
THIS REALLY WAS STARTED THE
CONVERSATION WHEN WE SAW
NETFLIX RAISE THE PRICES.
ON ONE HAND YOU CAN SAY WHO
CARES, IT IS TWO DOLLARS MORE
PER MONTH.
BUT ON THE OTHER HAND SOME ARE
SAYING THIS IS GREAT, JUST
PRAISING THEIR PRICING POWER
BUT ON THE OTHER HAND TO YOUR
EXACT POINT, PEOPLE ARE SAYING
IS THIS REALLY WISE, GIVEN THE
FACT THAT THERE WILL BE MORE
AND MORE PEOPLE CHIPPING AWAY
NETFLIX BUSINESS?
WE TALK ABOUT THIS IN
TECHNOLOGY, THEY HAVE SHOWN
EVERYBODY WHAT A GOOD IDEA IT
IS, TO HAVE THE STREAMING
BUSINESS.NOW IT IS UP TO THEM
TO KEEP THAT FIRST MOVER
ADVANTAGE.
>> HE TALKED ABOUT THE FIRST
MOVER.
THE GROWTH HAS BEEN PHENOMENAL
FOR THE COMPANY.
AS A QUESTION NOW -- THE
REVENUE IS LOWER-THAN-EXPECTED
BUT I THINK THE CONCERNING
PART, AND THIS IS JUST FOR SOME
TRADERS.
THEY SAY IT CONTINUES TO BE 3
BILLION IT WILL CONTINUE TO GO
ON.
SO FOR JONATHAN'S POINT ABOUT
COMPETITION, MAYBE THE CASH
BURN SHOWS THEY ARE CONTINUING
TO AMP UP ALL OF THE NEW
CONTENT BECAUSE THEY KNOW THE
MARKET IS GOING TO BE
SATURATED.
NOT THE CONCERNING PART OF THE
POINT WHAT I THINK THAT THEY
COULD LEVERAGE IS TAKING THE
NEW MOVIES AND PUTTING THEM IN
THEATERS ONE MONTH BEFORE THEY
GO ON NETFLIX SO THEY CAN GET
THAT.
THERE WAS NO MENTION OF
DETAILS, BUT --
>> THEY DID THAT WITH --
>> YOU HAVE THE IRISHMAN COMING
UP AND ALSO AN EARNING CALL
THIS EVENING.
MAYBE THERE WILL BE DETAILS.
>> TO YOUR POINT, MOST, NOT
EXCLUDING THE SHORT SALE, THE
MOST BEARISH I'VE SEEN SAY THE