ASHLEY: THERE'S GOOD FOOD AND I
KNOW YOU'RE A GOOD FAN SO
CHARLIE THANK YOU VERY MUCH.
APPRECIATE IT.
EARNINGS JUGGERNAUT WITH A
FACEBOOK AND AMAZON ALL
REPORTING EARNINGS PLUS THIS
WEEK WE HAD COMCAST WOW OUT OF
>> IS THAT A STORY FOR US?
ASHLEY: THAT WAS CHARLIE
GASPARINO.
JOINING US NOW TO DISCUSS ALL
HIS TECH EXPERT, CFRA RESEARCH
SENIOR ANALYST TUNA AMOBI.
THANK YOU, GENTLEMEN.
TUNA LET ME BEGIN WITH YOU.
LET'S BE HONEST THE TRADITIONAL
BROADCASTERS, THE CABLE NETWORKS
, THEY GOT TO DO
YOU THESE BIG TECH GIANTS ARE
>> THAT'S EXACTLY RIGHT.
I THINK THE SO-CALLED FANG TECH
GIANTS ARE BREATHING DOWN THE
SHIFT IN THE COMPETITIVE
PARADIGM AS A RESULT OF THIS
LARGE TECHNOLOGY AND A COMPANY
THAT I THINK WHAT'S HAPPENED IS
THAT THE DEFINITION OF THE
COMPETITIVE LANDSCAPE HAS
SHIFTED DRAMATICALLY TO
COMPANIES LIKE DISNEY AND VIACOM
AND CBS AND COMCAST ARE NOW IN A
NEW WORLD ORDER WHERE
COMPETITION IS GOING TO BE
AGAINST THE LIKES OF SOME OF THE
COMPANIES THAT YOU MENTIONED,
FACEBOOK, AMAZON, NETFLIX,
GOOGLE, ET CETERA AND ALL THESE
COMPANIES BY THE WAY ARE
ALL HAPPENING IN A TIME THAT
NETFLIX HAS DISRUPTED
SIGNIFICANTLY THE MEDIA
LANDSCAPE THE TRADITIONAL
AUDIENCE IS MIGRATING.
THERE'S NOW MORE EMPHASIS ON
DIRECT-TO-CONSUMER WHICH IS
REALLY MOTIVATING A LOT OF THE M
& A DEALS THAT YOU SPOKE ABOUT
ASHLEY: IT'S FASCINATING.
LANCE YOU COVER THE TECH
INDUSTRY.
WHEN NETFLIX IS SPENDING
$8 BILLION A YEAR ON ORIGINAL
CONTENT.
IT'S JUST ABSOLUTELY REMARKABLE
AND THEY SHOW NO SIGNS OF
SLOWING DOWN.
>> NO, NONE OF THEM DO, NETFLIX
DOESN'T, APPLE IS GETTING INTO
IT.
WE'VE HEARD THAT WAL-MART IS
INTERESTED IN IT.
WHAT THEY ALL UNDERSTAND IS THAT
PEOPLE ARE SORT OF MOVING AWAY
FROM THE BUNDLE AND GOING TO
THESE SERVICES THAT ARE
PROVIDING HIGH QUALITY CONTENT
AND THEY'RE GETTING IT WHEREVER
THEY WANT.
THEY'RE NO LONGER DISCERNING
ABOUT OH, I MUST SEE IT ON
TELEVISION.
THEY WILL WATCH IT ON ANY SCREEN
WHERE THEY CAN GET IT SO THERE'S
THIS FLOOD OF FRESH CONTENT FROM
ALL OF THESE TECH COMPANIES
BECAUSE THEY REALIZE THERE WAS
NOTHING SPECIAL ABOUT THE MAJOR
MEDIA COMPANIES THAT ALLOWED
HULU IS PROVING THAT.
YOUTUBE IS WORKING AT IT, APPLE
OBVIOUSLY I THINK THIS FALL
WE'RE GOING TO SEE A LOT MORE
CONTENTS FROM THEM SO IT IS I
I SEE THEM ALL SCRAMBLING TO TRY
AND FIGURE IT OUT BECAUSE
DO HAVE TO QUESTION WHETHER OR
NOT WAL-MART WILL SPEND BILLIONS
THE ONLY WAY TO WIN IN THIS GAME
ASHLEY: THAT COMES IN COMPETING
WITH AMAZON IN EVERY FRONT AND
TUNA, SOMEONE LIKE AMAZON IS SO
BIG AND HAS TENT IT CALLS ALL
AROUND THE WORLD GETTING INTO
MORE AND MORE DIFFERENT TYPES OF
BUSINESSES.
DO YOU, ARE THEY GETTING TOO BIG
IS THERE AN ANTI-TRUST ISSUE?
>> WELL, I THINK THAT THE SHORT
AMAZON BUT OBVIOUSLY THAT COULD
THE CONSUMER IS PAYING MORE FOR
SOMETHING SO YOU COULD MAKE THE
ARGUMENT THAT THE CONSUMER IS
HURTING AND TRYING TO KEEP
PRICES LOW.
>> THAT'S A VERY GOOD POINT,
WHICH KIND OF DIFFERENTIATES
AMAZON FROM SOME OF THE OTHER
CONSUMER-SENSITIVE M & A DEALS
ESPECIALLY CABLE OR MEDIA SPACE
BUT I THINK IF YOU REALLY THINK
ABOUT HOW THE COMPANY AMAZON HAS
EVOLVED I THINK THEY'RE REALLY
TRYING TO ATTACK AND DISRUPT
INDUSTRIES THAT HAS BEEN SO
THINGS SO THINK ABOUT SOME OF
THE RECENT ACQUISITIONS THEY'VE
MADE, WHOLE FOODS OR PILL PACK
AND I THINK WHAT'S ALSO
REMARKABLE IS THAT ALL OF THIS
U.S. AND INTERNATIONAL MARKETS.
PART OF THE REASON WHY WE HAVE A
BUY AMAZON ACTUALLY RAISED OUR
12-MONTH TARGET PRICE TODAY TO
2,000 AHEAD OF THEIR EARNINGS
REPORT NEXT WEEK, IS BECAUSE
THEY HAVE JUST DEMONSTRATED THIS
ABILITY TO REALLY BE EFFECTIVE
IN THAT DISRUPTION AND NOW, SEEM
S TO BE TURNING THE CORNER
IN TERMS OF GENERATING
SUSTAINABLE PROFITABILITY.
THE EVALUATION NOT OBVIOUSLY
SOME QUESTIONS BUT NOT AS MUCH
THAT'S GOING TO BE AROUND FOR A
MAJOR INDUSTRIES EVEN YET TO
COME.
ASHLEY: I THINK YOU'RE RIGHT,
TUNA.
LANCE LET ME TALK TO YOU.
YOU MENTIONED WAL-MART I WANT TO
GET INTO WAL-MART BECAUSE WHAT
STRUCK ME IS WE JUST SAW
SUBSCRIBER GROWTH FOR NETFLIX
SLOWING DOWN IN THE LAST
EARNINGS REPORT.
THIS IS A VERY CROWDED FIELD.
WHAT'S THE BENEFIT FOR WAL-MART
A STREAMING SERVICE WHEN THERE'S
SO MANY PLAYERS IN THIS FIELD.
POINTS.
EXPERIENCE AND BE WHEREVER A
CONSUMER IS, LIKE THEY HAVE
AMAZON PRIME DAY ONE OF THE TOP
SELLING ITEMS LAST YEAR WAS THE
ECHO DOT.
BY THE WAY THE ECHO DOT IS WHERE
YOU CAN BUY SOMETHING SO NOW
THEY'VE GOT MORE TOUCH POINTS WE
CAN BUY SO WAL-MART LOOKS AT
WHAT AMAZON IS DOING AND IT'S
21ST CENTURY RETAILING AND THEY
THINK WELL HOW DO WE DO THAT AND
MAKE SURE THAT THE WAL-MART
EXPERIENCE GOES WAY BEYOND THE
STORES, THAT IT IS SEEN HOLISTIC
ALLY AND SEEN IN ALL
DIFFERENT PARTS OF YOUR LIFE AND
POTENTIALLY DELIVERING CONTENT
ON THE VUDU NETWORK THEY BOUGHT
MAYBE IT'S ONE WAY OF DOING IT
BUT THEY ARE OBVIOUSLY STARTING
WAY BEHIND BUT AGAIN I HAVE TO
EMPHASIZE THAT I DO REALLY THINK
CREATED IN THE RETAIL SPACE THAT
IS MAKING ALL OF THESE COMPANIES
RETHINK HOW THEY REACH CONSUMERS
AND UNDERSTANDING THAT IT'S NOT
JUST ABOUT SELLING PRODUCT.
ASHLEY: THAT'S A VERY GOOD POINT
TUNA I'VE GOT 30 SECONDS WE'VE
THESE MEGA MERGERS I THINK ARE
GOING TO BE MORE AND MORE ARE
GOING TO COME TO MEET THE
COMPETITION FROM THE SOCIAL
MEDIA PLATFORMS THAT ARE REALLY
TURNING INTO GIANT MEDIA
COMPANIES, RIGHT?
>> YES, WE DO AGREE WITH THAT
PREMISE.
ALTHOUGH WE ARE JUST TALKING TO
SOME OF THE EXECUTIVES WE HAVE A
SENSE THERE IS A LITTLE BIT MORE
CAUTION NOW AND THE OVERALL
DEPARTMENT'S DECISION TO APPEAL
THE AT&T TIME-WARNER MERGER BUT
ALSO THE SINCLAIR TRIBUNE DEAL
THAT'S NOW HANGING IN THE
BALANCE BEEN SENT TO THE
BUT ECONOMIES OF SCALE REMAIN
LARGELY ONE OF THE MAJOR
UNDERLYING DRIVERS WE THINK AND
WILL REMAIN SO FOR THE NEXT YEAR
ASHLEY: FANTASTIC STUFF LANCE