Breakfast News: Streaming Success
January 22, 2025
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Source: Image created by JesterAI.
1. Netflix Delights
Netflix (NFLX -0.08%) jumped 14% in extended hours trading on Tuesday, after smashing through forecasts and attracting a record 19 million new subscribers in the quarter. The company announced a $15 billion buyback, and now expects between $43.5 billion and $44.5 billion in 2025 revenue. Netflix also hiked its prices, with the standard subscription up 16%.
- "No single title really drives a majority of our acquisition or engagement": Some big sporting events attracted big numbers, but co-CEO Greg Peters said only a minority of new subs signed up for live events.
- "Netflix gets access to the WWE audience": Fool analyst Nick Sciple highlighted the collaboration between Netflix and TKO (TKO 0.33%) on a recent edition of Motley Fool Money, while host Ricky Mulvey responded "you're also going to have a younger viewer demographic that is flipping through to see what's on, and when they want to do that, they go to Netflix. Not so much cable."
2. Airline Stocks Fly
Confidence in the travel industry continues to pick up steam, as United Airlines (UAL 0.73%) beat earnings forecasts in Q4 results, making it four times in a row. Other airline stocks rose in response to the strong earnings, with investors anticipating similar positivity from rivals in the coming days and weeks. United stock is up 187% in the past 12 months, leading the sector.
- "Best financial year in our history": Ed Bastian, CEO of Delta Air Lines (DAL 0.40%), previously enthused over his company's outlook for 2025 as the two rivals benefit from strong demand in business, international and loyalty program travel.
- Up 37% in a year: Eyes will be on American Airlines (AAL -0.21%) to continue busting expectations with Q4 results due Thursday, after its stock recovered from last summer's slump.
3. AI: Build, Build, Build!
Oracle (ORCL -0.69%) closed 7% up on Tuesday, after joining the new $500 billion Stargate project backed by President Trump to build artificial intelligence infrastructure, along with OpenAI and Japan's SoftBank.
- "Approved OpenAI's ability to build additional capacity": Microsoft (MSFT 0.89%), a "technology partner" in the venture along with Nvidia (NVDA 0.01%) and Arm (ARM -3.02%), has relaxed its exclusive right to build infrastructure for OpenAI.
- Another billion: The Financial Times said Alphabet's (GOOG 0.20%) Google is investing an extra $1 billion in AI start-up Anthropic, in addition to the $2 billion fund raise already reportedly in the pipeline.
4. Next Up: Big Pharma Earnings
Johnson & Johnson (JNJ 0.71%) will post Q4 earnings this morning, after beating estimates in its four previous quarters. Analysts expect a better final quarter than last year, but a slower year overall.
- "Impact even more patients living with neuropsychiatric and neurodegenerative disorders": Executive vice-president Jennifer Taubert spoke of the company's $14.6 billion deal for Intra-Cellular Therapies (ITCI), the neuroscience drug developer behind bipolar depression treatment Caplyta.
- Unresolved talc suit: Johnson & Johnson is still working toward a settlement for allegations that its talc powder caused ovarian cancer. It's expected to be resolved early this year.
5. Foolish Fun
Which two stocks do you believe can outperform Netflix in 2025, and why? Discuss with friends and family, or become a member to hear what your fellow Fools are saying!
