on netflix, raises a red flag for netflix competitors. i don't hear others jumping into streaming leading with data, separate profiles for different family members are they going to be able to make things blow up, help people discover content they didn't know they wanted to watch already? >> excellent point if you're at lifetime and turn down renewing "you" you feel bad after last night's print netflix has a global distribution advantage next two years, netflix is approaching 200 million subscribers globally netflix is about discoverability. you go to netflix, you're looking for content. by leveraging, it is data science advantages, it can provide more relevant content to users, and we think that helps create a virtuous cycle. more engagement, more time on the platform, ultimately better pricing and margins in the long term >> i want to dig into the subscriber numbers more. the domestic ads were shy of expectations you have the international numbers which came in better than expected. one of the key things that keeps getting pulled out is

because you can only get it on netflix. most of the growth is coming from international. how much does the competition matter? they are opening up all of these new fronts and other countries. >> it matters because the u.s. is the biggest market. backing up on ownership versus exclusive licensing, what matters to subscribers is where they can get the piece of content. the ownership is a technicality. if netflix has exclusive rights for years and they are drawing new subscribers, that is the magic that matters. -- the metric that matters. to your question about international, that is where growth has been focused. a couple of years ago, netflix crossed the line of having more subscribers outside the u.s. more recently, they crossed the same line with revenue. that is where growth opportunities are. they are closer to hitting the ceiling of what they are capable of in the u.s. than in other populated regions. emily: we will continue to follow the reaction to netflix results as they come in. paul verna and michael proctor, grea

netflix is dominating new media. goldman sachs added the company to its conviction list while traditional companies are raising prices to offset cutting. to the top story, it has been a short week starting on trading in 2019 but it has not been a slow one. the travesty that has happened over the past couple of days, apple sucker punched the market with a cut that caught investors by surprise. apple shares seeing the worst drop in almost six years. suppliers in asia are also tumbling on the news. even before the apple newsweek chaos, customers reported its own results. to discuss further, sarah ponczek. let's start with tesla. investors seem to think the original selloff was overdone. >> some investors are saying that original selloff we saw was overdone. we are seeing a bit of a bounce. we see the comeback since the first day of the year. we see a really rough day for tesla, but the back to the matter is that we keep seeing concerns surrounding the company. we're talking about a company down 30% at one point and boun

eerie what netflix is facing -- off of netflix. what netflix is facing, they may be the aol of ogt. aol popularized a new consumer abit, going online, but they were not defensible. when people learned to go online, they found out what they wanted. netflix has popularized streaming, but now we know how to stream, we can find all kinds of material in all kinds of places. this year you have disney launching a rival, you have at&t bulking up, going to combine hbo and other warner media content for a new over-the-top subscription play, nbc niversal, apple. if they have a tough fourth quarter, wait until 2019 and 2020. it will not get easier. it will get more expensive. netflix' s big advantage -- netflix's big advantage is they know how users are using content. they are ai powered to nderstand user we have years and match that to content. that enabled them to delight subscribers. they know what you want to watch next. that has been fantastic. the thing is all of the other companies i named are aware they need to become ai ready. i helpe

perspective netflix usually moves more. day after earnings report, the last, i believe eight quarters, moves average of 6.4% next day. we say it is only down now by 3%. we'll see where he go from here. melissa: all right. travelers, pack your patience. air traffic controllers are sounding alarm as the government shut down hits airports across the nation. the fallout coming up. >>> plus if at first you don't succeed. british theresa may meeting with uk lawmakers to discuss a plan b, after the first failed brexit vote. we're live in london. that's next. ♪ td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪ if you have postmenopausal osteoporosis and a high risk for fracture now might not be the best time to ask yourself are my bones strong? life is full of m

of netflix. what netflix is facing a something i talked about on his network before, they may be the aol of ott. mark: i completely disagree. whoever has the most subs can afford to buy the most content. netflix has six times more paying subscribers than anybody else and they can bid more economically for things. they are the biggest ire of content and i did not think studios do not want to sell to them because they have to answer to their shareholders. emily: regulation in general, we know that congress, washington is taking a closer look at these tech companies. mark: these assets are so big, they should be constantly scrutinized given the size. emily: you say more regulation is coming piece by piece. mark: -- in the last five years -- emily: in europe, not in the u.s. mark: we have not seen anything undermine the value of google. it is half the size of walmart so you would have to bust up walmart before you go to bust up amazon. i hope we are not in the economy where we bust up people because

in the case of netflix, they're not going to change the world again. their business model is not going to be different. i struggle with the question about how to value netflix while i think they're doing a lot of good in terms of capturing broadcast eyeballs, i do not think this company should have an outsized multiple given they probably aren't going to make a dramatic change to our lives in the next decade. >> gene, you said you were not extremely positive on the netflix story going forward. i'm wondering whatever the reason may be, are you seeing signs of that appear are there cracks in the story that you're seeing in this quarterly report >> there's two things. first is impressive price increase the speed of the price increase was a little faster than happened it was just under two years and most people think it would be two to three years that's coming from a sign of strength so i understand why people are optimistic. every time you take a step forward like that, it sets the bar higher apple in 2017 raised the pricing and that became a near term,

netflix ended the year with 139 million subscribers. just under 8.9 million people signed up as paying customers in the three months to the end of december. more than 7 million of them were actually outside of the united states. the company made revenues of almost $4.2 billion in the period — more than 27% more than the same period last year. but that was not as much as wall street was expecting. and that sent shares down in after hours trade. netflix is spending vast amounts on new programmes. it had a budget of $8 billion last year — $1 billion more than 2017. great news for actors, writers, directors, but investors want to see that paying off in terms of revenues. well, expectations are high. the shares have had quite a rollercoaster ride and they're up around 75% since the start of last year — making it one of the best performing of the tech giants. but there's growing competition. the likes of disney, amazon, facebook and warner media are all trying to take it on with their own original content, as are local players in countr

so netflix is challenged there. i also feel like as a parent, i don't find as much content for my kids on netflix so i find myself going to prime a lot more or hulu a lot more for my kiddos and might not be their market but it is something that i think is a huge opportunity if they can get that right. neil: netflix has more content than those guys, right? isn't that the big thing it brags about. but apple could storm into this pool in a much bigger way, and i'm just wondering, as companies weigh how they want to grow in this business, whether they take that netflix model and take it to new levels. >> we have seen apple was announcing last year how much original production they are going to embark upon. clearly, you know, what we'll see, it will be interesting, is whether or not apple produced shows and movies can get the kind of momentum that we're seeing from bird box and that new thriller "you" that's really targeting millenials on netflix and has done so well. so it's really a question mark around the content and

netflix gave light first quarter earnings and revenue guidance. subscriber growth was close. a little light on domestic, better on international. is that the headline >> subscriber growth was more or less on trend. they're projecting similar for the first quarter. i would imagine on the call people want some granular projections of how the price increase is going to be absorbed an how many more might be coming behind that. >>> quickly on american express, they had their earnings out. a little miss on the revenue line, the stock is down 2.5% the guidance was fine. more analysis on that coming up. and tomorrow morning as well that does it for "closing bell." thanks for tuning in >> have a good night, everyone "fast money" begins right now. >>> "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. we start off with netflix reporting earnings moments ago the streaming giant under pressure after missing revenue we'll have full team coverage as we gear up for the conference call which

>> apparently netflix has quite a bit. companies where you don't feel it, like i am a -- believe it or not, i am a netflix subscriber i have no idea how much -- and i don't think i'm atypical i don't know how much i pay, i don't know where the bill goes to. >> it's magic. >> it's magic. and i think you can increase prices i think 80% of the people that have it have no clue and that's simplistic but i happen to believe it's true. we've been bullish netflix i believe they release on thursday i'm sort of skeptical, as a lot of people are, why they would announce this ahead of earnings. doesn't matter who else fits in that category i don't think disney does because you see the bill but a company like amazon, i think this absolutely empowers amazon not to necessarily act in kind but in the back of their mind they can say, hmm, netflix has done it we can do it to our amazon prime folks as well >> to guy's point, how much do you pay for amazon prime right now. there's a lot of people who don't know how much they're paying for tha

netflix pulled it from saudi arabia. it continues to be accessible on youtube and has gotten over 1.6 million views. this is democracy now! we want to thank courtney radsch and sarah leah whitson for joining us. to awe come back, we go remarkable person, nadia murad, the yazidi kurdish human rights actist who jusust award the 202018 nel p pea prizezen oslo. ♪ [music break] amy: this is democracy now!,!, democracynow.org, the war and peace report. i'm amy goodman with nermeen shaikh. nermeen:e turn now to a remarkable documentary tt profil t the le ofof nia murad,hehe yazi kukurdh humama rights activist fromraraq. e was awded the 18 nobel peace prize jointly with congolese gynecologist dr. denis mukwege. in 2014, nadia murad was kidnapped by the islamic state and repeatedly raped as she was held in captivity for three months. since escaping, she has dedicated her life to drawing international attention to the plight of the yazidi people. the film is called "on her shoulders." this is the film's trailer. >> they are all

well two thousand years off to a rocky start if you're netflix the streaming giant has come under fire for withdrawing an episode of the popular comedy show patriot act in saudi arabia perhaps understandably the solti are not understand why this all the ground prince was not amused at a joke about the killing of journalist jamal to show arnason is you know the tell us more about this happy new year carla. so what is the problem with the crown prince why is he so it didn't know was that just a joke right i mean wasn't so this show was hosted by us comedian. gets quite political in one of his first episodes that focused solely on saudi arabia particularly the crown prince mohammed bin samana and his alleged involvement in a show she's killing we actually have a clip from the episode if you haven't seen it take a look just a few months ago from prince mohammed bin some on m.v.s. was hailed as the reformer of the arab world needed but the revelations about to show this killing have shattered that image in a booze my mind but it's about the killing of the washington post journalist for ever

a joke about the soldier he brings it falls flat for netflix. i'm burnt off it's good to have you with us president double trump is digging in his heels announcing the u.s. government should be could last a long time trumbo told his cabinet in just a few minutes that he will keep the government shutdown for as long as it takes the president preparing to meet with talk to mcgraw. can republican lawmakers shortly but he's sticking to his insistence that the budget needs to be include funding for a border with mexico something that democrats have refused to support. let's take this story now to washington he. joins me from our bureau in the u.s. capital given to a huge deficit and have the new year this will be the first time that trump i guess meets the democratic lawmakers nancy pelosi and chuck schumer the first time in what about two weeks since that last circus of the meeting they had in the oval office will this meeting be any different. yes there won't be any cameras this time this really will happen in the situation room which is of course

big news today out of netflix, raising prices for u.s. subs as much as 18% effective immediately for new users. the biggest increase since they launched the service 12 years ago. stock is moving higher the most popular plan with hd streaming on two devices at a time, a hike to 13 mark mahaney and math thornton are on the phone with us mark, we talked about something like this happening a long time. what does it mean now that it is finally here >> this company is flexing its pricing muscles. this is the fourth time they've done this. most recently did it at the end of '17 you have the numbers right, about mid teens percentage, 15% increase in pricing. what it allows them to do is take that to the bottom line, price increase is pure profit, or better fund, better finance the content obligations. so just to put context around all of this, if this price increase successfully goes through, you're talking about a billion in incremental revenue and profit to netflix next year sus just in the u.s. if they expand globally, 5 to 10% booth to top an

netflix had a 30% move into earnings. had expectations high in the wake of the recent price increase. had to blow numbers out across the board. you had some upside and margins were light in q1. that was mainly a function of fx , so we think this is a transitory facing issue. >> we are starting to get more information from netflix about subscribers, viewers. take a listen to what reed hastings had to say about how much share of the broader tv market they are snagging. take a listen. are one billion hours of television content being consumed a day. we are winning 10% of it. that is why disney has great content. we are excited for their launch. maybe they grow over a couple of years to 50 million hours a day, but that is out of the one billion. emily: we have talked to a lot of analysts who are pessimistic about the future of netflix given that companies like disney and will becontent more competitive in the future. talking to creators, most are and don't think there is a problem at all. what is the unveiling view their? >>

but is there a better way to play netflix than netflix stock? we have some names. "countdown" will be right back. val, vern... i'm off to college and i'm not gonna be around... i'm worried about my parents' retirement. oh, don't worry. voya helps them to and through retirement... ...dealing with today's expenses... ...like college... ...while helping plan, invest and protect for the future. so they'll be okay... without me? um... and when we knock out this wall... imagine the closet space. yes! oh hey, son. yeah, i think they'll be fine. voya. helping you to and through retirement. i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. it's a revolution in sleep. the sleep number 360 smart bed is on sale now during the january savings event. it senses your movement, and automatically adjusts to keep you both comfortable. it even helps with this

is netflix a tech company? thing tohe first big report and people were anticipating what they would say. how much of a read there is there for the rest of the tech sector? >> netflix is not a tech company. it is a unique media company. a global media company. their international subscribers and revenue are a big growth opportunity. half of the company's revenue is more than half of its international. we are looking with excitement to their international growth. the u.s. is reaching saturation but continues to grow at an impressive rate given how many americans use the service. will flow through at high margins in terms of profitability. they raise prices, people said, they will go along with it. look of people do not even -- i do not even what -- know what netflix is charging. >> $13. >> looking at the resilience of the trend line that we had in 2018, do you see that continuing? not just for netflix but for other consumer companies? >> across the consumer space it is a battlefield. a lot of consumers are moving

phil: and of course netflix, as i look around the media landscape, netflix not the only media company looking like it will have a tough time this year. carl: the state of media freedom for tech companies is only getting worse, not better. as these companies expand into other countries, netflix now is in about 200 countries. you have to start deciding if you prioritize profit or freedom of speech. and we saw the concession netflix made in saudi arabia. another country on the horizon is vietnam. this week they pass their own beer -- own version of the cybercrime bill. this would criminalize criticism of the government and requires tech companies to hand over user data that could be important to a company like facebook. we will see more battles like this with authoritarian regimes in the future. phil: something to look forward to. thank you. fifa president says world football's governing body is studying whether it is possible to expand the 2022 world cup to 48 teams. he said fifa should follow through with the idea of which was first suggested last marston -- march. fifa has already vot

you have a hold on netflix which is bold. the price target you've got is a bit lower than what it is now. >> right >> what do we need to hear on subscriber numbers for the recent price increase, netflix, to still seem positive in investors' minds >> i think you need to see significant beat, expectations and guidance first quarter i think the price increase was a positive in several aspects. one, i think there will be some churn as with all price increases, but i think subscribers largely absorb it, that's one number two, i think there will be some trade down from pricing consumers to lower priced plans, so it will be less password screaming. that could lead to incremental sub growth at the margin third, it is all profit for the price increase they can use that to invest in more original content or let it drop to the bottom line and plug some of the hole in the free cash flow model. >> i'm going to cut you off. we're going to the paeentagon. the president is making remarks on defense let's listen in. [ applause ] >> thank you

netflix is charging more, so are some drug companies. and the ability to do that could separate the winners from the losers. those stories and much more tonight on "nightly business report" for this tuesday, january 15th. >>> good evening, everyone, and welcome. we usually start the sho with news about the u.s. economy, american business, or the market. tonight we're starting overseas in the united kingdom, and the biggest money sry of the day. british prime minister theresa may suffered an historic defeat. her plan to withdraw the from the european union failed, and it wasn't even close. tomorrow may faces a no-confidence vote. the deadline to leave the eu is the end of march, and there's irrently no plan on how to do that. creating uncertainty for investors, who fear global growth could aake a hita result of it, and that created volatility on wall street. the dow jones industrial average added 155 points to 24,065. the nasdaq w u 117 and the s&p 500 rose >27. weegin tonight with willem marx in london. >> the ayes to the right 20 2. the

on top of that, netflix said " is bigger"fortnite competition than hbo. all things considered, how do you see that impacting subscriber growth over the next two years? >> that comment is idiotic. i'm sorry, but i'm pretty confident i know more about hastings" than reed does, and he's completely wrong. 20 shows bythe top viewership on netflix. by top four were competitors. -- of brothers, disney, fox warner bros., disney, fox, and nbc universal. and that content is going away. by the end of 2020, i would bet all of that content is gone and on their own services. netflix is going to have less buy, which is going to place the onus on them to develop originals. and i am going to be honest, their originals suck. they have plenty of great programs they call original. they just don't happen to own them. "ozark" is great. they were bragging about " bodyguard." they don't own that. or a they can have a dozen hundred, they are never going to replace the stuff they are losing. meantime my in snap tumbled wednesday on news of another high-profile exec leaving the com

but in general, i think netflix has separated itself as a story line from the rest of f.a.n.g. but in general, the appetite for the big growth stocks, the old ones that worked, you know, last year so well for most of the year, i think tells you it's much more just of a refreshing of risk appetites in general that's mostly what we've seen, i think, in the last three to four weeks. okay, people were able to decide that was the downside overshoot in the markets the credit market did not tell you there was something broken in the system. and so, we're just going to take it back up now, i think the question is, you've kind of unwound that overshoot, you're back at this level that you were at in early december for the overall markets, for the nasdaq and everything else, do you have the horses to take it past it, without much of a rest or a pullback. that's the question for today and tomorrow as we get more of these earnings >> ben, give us your take on the streaming landscape, overall we heard about our parent, nbc universal entering the fray with this service that's going to be free

nejra: what about netflix? >> netflix we don't own on our portfolios. the valuations are pretty stratospheric. they are the leader at the moment. we do have a lot of of the companies trying to get into that space. there is a danger that profits could be eroded. had the banko earnings this week. you talked about banks, does the valuation stand? >> i think that is still broadly true. we prefer u.s. to europe. overall, we prefer the debt because capital positions are very high. it is more difficult to make an equity return. nejra: on the yield curve, let's talk about the fed. there were many contradictory turtles -- when you look at equity markets now, is the fed pause more supportive than corporate earnings? >> i don't know. it depends on magnitude of corporate earnings. it has been decent, not amazing. the data could be good and then people could worry that the fed could raise rates. nejra: yeah. >> we will have to wait and see. our approaches we will watch the data and see. nejra: great to speak with you this morning. that is it for "daybreak europe." t

i think netflix has like the hot hand. they have the brand and i think for the millennial generation, they can't live without it. a couple dollars here and there, they have flexibility. cheryl: i bring up the issue of the price hikes, going from $11 to $13, depending on the plan, most people -- everyone's going to get hit. investors cheered that when the news came out, the stock jumped. on the other side of that is how much are consumers willing to spend? netflix will have to continue to raise prices to deal with the $13 billion in debt n had a bond offering in october, they pulled another $2 billion out of that. they've been on a spending he se for content that hasn't stopped. at some point won't investors say you need to deal with the debt, make the business model work. >> if you read the articles, they're trying to use comparisons to facebook and talking aboute engagement and te fact they're a tech platform. they have essentially what's called addressable television, they have much more information as to who you are, th

netflix ended 2018 with 139 million subscribers. just under 8.9 million people signed up as paying customers in the three months to the end of december. more than seven million of them were outside the us. the company raked in almost $4.2 billion in the period, more than 27% more than the same period the year before. but its share price has fallen because wall street was expecting even more. netflix is spending vast amounts on new programmes. its budget grew to $8 billion last year. great news for actors, writers and directors, but investors want to see that paying off in terms of revenues. expectations are high. neflix shares have had a rollercoaster ride but are up around 75% since the start of last year, making it one of the best performing of the tech giants. but there's growing competition. the likes of disney, amazon, facebook and warner media are all trying to take it on with their own original content, as are local players in countries such as india. tom harrington is a senior analyst with the media research firm enders anal

to go oh i guess he's really not a reformer a joke about the soul the crown prince falls a flat for netflix we'll tell you what. i'm. good to have you with us tonight u.s. president double trump is digging in. his heels and else in the u.s. government shutdown could last a long time trump has told his cabinet that he will keep the government shutdown for as long as it takes the president is meeting with top democratic and republican lawmakers this afternoon to discuss the impasse he is sticking to his insistence that the budget includes funding for a border war with mexico something that democrats have refused to support the partial shutdown has now entered its twelfth day two weeks. here's what trump had to say a short while ago the united states needs a physical barrier means a wall to stop illegal immigration and to halt deadly inflow of drugs and crime. where in the shut down because of the fact that the democrats are looking to twenty twenty they think they're not going to win the election i guess a lot of signs point to the fact that they're not going to win the election i hope they'r

suddenly you look at netflix, what a run i know it because i actually own some netflix i was looking for a pullback, mel, because i've been trying to do this buy right strategy where i can buy it back and roll it up i executed that again yesterday. i'm okay with it i was hoping it would get back to these levels. i don't know whether the s&p has to test lows or if netflix has to go back down and test lows. i think when we look at the numbers getting through earnings season, particularly today, we had ibm, united technology, procter & gamble that put the dow up in a great spot facebook and some of the nasdaq stocks started to sink as the day started to go off. >> we're having this discussion because ultimately netflix is one of those names that is a high multiple stock that's all about growth if you look at today's earnings, the reason ibm and utx, these stocks are outperforming is there's specific things around these companies that are reasons why people are rallying utx. we don't need to get into that but that's all about utx dynamics, all about ibm dynamics the reason the financials

the double edged sword is that netflix will have less they can purchase. that will put the onus on them to develop more originals. and i have to be honest but their originals suck. they were bragging about bodyguard -- it is phenomenal. but it is owned by bbc. until they can create their own stuff and "stranger things" is original. until they can have a hundred of those, they will never separate themselves from the others. emily: shares of snap tumbled on wednesday on news of another high profile executive exiting the company. it dropped by as many as 13% after revealing that cfo tim stone has resigned after only eight months on the job. he is only the latest of a series of executives that have left snap. there have been 20 departures since the company went public. coming up, the u.s. department of justice is turning up the heat on the smartphone maker. could federal charges be coming? feeling the heat of a government shutdown. what oracle has to say about the government shutdown. this is bloomberg. ♪ emily: samsung unveiled an inexpensive set of smartph

new netflix members will pay the higher price immediately. the increase will take effect for all existing members within the next several months. the company's annual programming costs reached 8-billiodollars in 2018. netflix shares were up more than six percent today on wall street today after the announcement. (catherine) still ahead... we see it on bay area roads every day-- speeding, swerving, and tailgating. now we're learning just how aggressive drivers can be in the state. the details after the break. (grant) getting around in wet weather is tough enough ... but rain or shine california has been handed the crown for having the country's most aggressive drivers.the ranking comes from a new bay area website "your mechanic" and it's based on how often we encounter drivers who can't seem to settle with simply going with the flow. tailgating ...swerving from lane to lanebeep "96"zooming past other cars ... californians report they encounter aggressive drivers an average of every six and a half minutes.tick tick connecticut, georgia, texas a

here's netflix's ceo he is not wrong. here's netflix's ceo reed hastings on the company's earnings call. >> we compete so broadly with all of these different providers that any one provider entering, you know, only makes a difference on the margin that's why we really think our best way is to win more time by having the best experiences, all the things we do and that's helped us a lot. >> i'm going to go straight to ed lee how did you take this quarter? it was a mixed element to it a lot of people excited to hear this news obviously about what's the bird movie come on. >> "bird box." >> "bird box." >> reached 80 million people >> not just -- a bunch of the other shows finally revealed more numbers, the viewership it's something reed haits haigsings and netflix has been saying for years now there's no point in giving you these numbers. we're not an ad-based business you don't need to know how many -- of course, if you are in hollywood, if you are a creator, if you -- >> you want to know. >> not just for your own ego sake,

>> the big banks were the headlines but the netflix increase in prices and the run in netflix shares have put a lot of that stock in focus here. one of the best performers in trading today in the s&p shares have rebounded by 50% since the market lows on christmas eve. it's driving gains in the s&p 500 the communications sector the best performing. some of them have exposure to netflix stock. some of the larger etfs. the spdr communications services fund, xlc. it's got around 5.6% of that fund as a holding. also the vanguard communications services fund, ticker vox. it's got about a 5%, 5.8% weighting there. and the first trust dow jones internet fund has a 6.5% weighting to those shares. but the biggest impact will be in the $500 million invesco nasdaq internet, pnqi. they represent about 9.5%. making it the single biggest holding there. those are some of the etfs that will have the biggest impact from the netflix trading today, david. back to you. >> thank you, dom chu. back at our headquarters >>> one week after closing its $57 billion acquisition of shire, takeda pharmaceutical he

month or so, netflix is up 50%. talk about a stock being priced for perfection going into an getings report, it doesn't more priced for perfection the netflix. we are down a little more than 2% in early trading. that is a drop in the bucket when you compare it to the 50% we've seen gained over the past month or so. revenue,to think about which did come in a bit light, but the stock down 2% isn't that big of a deal. carol: it's an interesting environment. looking for positives in a somewhat negative earnings report. know, whatdon't struck me as interesting about this report, netflix taking more debt onto its balance sheet, looking forward to more streaming services, including disney, which will be a monster when it starts later this year. they will have a lot of competition. they are planning for the future and spending money for the future. wall street never likes that. it has to be this quarter, this quarter, this quarter, what did you do? the last company that seemed to get away with that for a long time was amazo

broader markets struggling today but not netflix. we'll explain that one 2018, a record for pc investment how is 2019 looking and the government shutdown, real world impact on small business "power lunch" begins right now >> welcome to "power lunch." i'm melissa lee. breaking news right now on the banks and the impact of the shutdown steve liesman has all the details. steve? >> melissa, thank you very much. the federal reserve and several bank agencies out now with guidance to the financial firms to work with those affected by the government shutdown. regulators urging for them to consider things like loan modifications orextending credit to those affected by the shutdown and then saying such arrangements should not be subject to examination or criticism of the examiners what's interesting about this kind of guidance they give typically with natural disasters such as hurricanes or in november, the california fires separately, cnbc asked with moody's rep on the shutdown effect of growth we're tracking pretty strong for the fourth quar

that's a mass i number of people who subscribe to netflix every month. it added a record 8.8 global paid memberships just last quarter. that's 34% increase year on year there's big growth in subscribers. that lends to big growth in revenues even if it was a slight miss this quarter. bird box had 80 million viewers. pretty significant numbers there. there are, of course, some negatives in this report the cash burn remains an issue for netflix. operating margins are getting smaller. the company has spent $3 billion burn cash last year. that's on its new original content as it tries to keep up with increasing competition in this space >>> even though we saw a little bit of a pullback in the stock in after hours, down 4%, the stock is still up 50% or so, 45% since late december. anthony, also, when you look at the valuations here, it is extremely expensive stock. it trades at 105 price earnings. 63 times ebida >> all my friends in california cutting their cable. more and more of them are not using regular tvas they're going to hulu or the likes of netflix it

. >>> meanwhile, wall street is waiting on netflix. earnings expected after the bell following news this week that it's upping its subscription prices. goldman and guggenheim both boosting the price target by $20 and $30 respectively. but you know what, these guys are cheerleading just as the entire media world appears to be pivoting to compete with netflix's streaming model and clearly, somebody might get it right. reporter: that is exactly right. netflix does have a first mover advantage in streaming but more competitors, to your exact point, are coming online so amazon, disney, apple, hulu, at & t, they already either have a streaming division or activity or will soon be streaming their own content. basically, netflix is going to have more competition in the future versus less. now, as for this subscription price hike, there's a group of analysts who say it proves that netflix pricing power is there, no one is really going to cry about $2 extra a month. then there are analysts that say with more competitors on the way, netflix has t

has 10% of all the time spent watching tv is now on netflix. what does the company think the biggest threat to the dominance? we'll tell you >>> the trade optimism continue today. a good rally on wall street. home depot, chevron, united health, teilr l adg e way.laallein we're back in two. >>> shares of netflix down nearly 4% right now off the lows we saw after the earnings report last night there was also one surprising bombshell in that report it wasn't the tons of money on content. the streaming giant telling investors their biggest competition, drum roll please, is fortnite. not hbo. not hulu or streaming competitor not sleep like we've heard in the past netflix saying, kwoequote, we compete with fortnite more than hbo. >> the fortnite phenomenon still a powerful force but how much longer will it last? jeffrey staying the battle royale genre and fortnite grows stronger in 2019 the top predictions for video game sector. timothy, welcome good to have you with us i talk to my 13-year-old son who was a massive, as i think you know, fortnite pla

netflix cautioned fans to not end up in the hospital. >> that is smart of netflix to do this. that is silly. >> reporter: we spoke to people who have seen the movie. >> great movie, first of all. no one should do anything to hurt themselves. >> people are silly and stupid. they should news common sense. >> companies are always concerned when something takes off that is out of their control. >> the company boasted more than 45 million accounts streamed bird box in the first 7 days. numbers that can't be verified. youtube is now getting involved. they are removing bird box challenge videos. in a statement to kpix 5 tonight the company says guidelines have prohibited content intended to encourage dangerous activities. >> scary. >> bird box, birdbrains. >>> we have some clouds moving into the bay area but the rain didn't move in till midnight tomorrow night. 25 hours from now it will be wet in the bay area. at the moment the numbers are mild but that will change. tonight freezing in santa rosa and livermore chilly as well but that system, first the high clouds and then the low wil

tack to me about netflix okay. you have a lot. go. >> so netflix a lot of people don't know this but since christmas a 52.8%. year it date it is number one stock number one stock the s&p 500, and the second -- number two stocks about 46% so a number one stock since christmas 50.8%. year to date 2019 for two weeks is not too bad. >> that is incredible. profit growth over 117% compound last three years revenue growth is 30% and r&d is 23% compound to last three year. only 16% off from the 2018 highs which was if in july. but i think we're going to see good numbers today. >> okay would you buy netflix if >> i would. i would say -- >> before the profit report? >> get out there on a limb. a little because it is important to have all it can here and what i love about netflix is exposure to emerging markets i'm a fan of emerging markets with a huge population with a huge growing consumer and if they can get that market, i think they really succeed. >> one if not the most important media and entertainment companies on the planet. right. i

joe, netflix is this going to be a market tell or just a netflix story? >> i think the expectations are very high. but this is a company that raised prices ahead of earnings which is very interesting to me. you must be feeling pretty good about your earnings if you're raising prices a few days before so i wouldn't be surprises to see netflix surprise the street here previous quarter i thought they would have an impact on the market i don't know necessarily if it will have a dramatic impact on the market overall i think netflix over the last four weeks has proved itself when you're looking for growth opportunities, if there was any form of a decline in netflix, that's an opportunity for the longer term investor it certainly screens well when you check all the boxes for the things you're looking for in a 2019 environment where yes, we have concerns as it relates to trade and the chinese. and we have a rising rate possibly environment but overall, this is a pure growth opportunity and if you're looking for -- if you're looking for that in '19, it screens at

n netflix said they cited article 6 of their anti-crime cyber law. there's a lot in that episode that saudi officials would not be happy about hearing, including where he goes off against mbs. but anotherish s isis isis isis is him talking about how saudi arabia is home and he's pretty much doubting whether saudi arabia be in charge of these really religious sites. that probably contributed to this but we don't have more details necessarily on exactly what in that episode saudi arabia officials were not happy with. there was another episode released where he goes even harder related to the khashoggi killings and that netflix confirmed that episode is still up and available in saudi arabia. >> the episode has 1.4 million views already, at least double what his usual episodes get on youtube. what else is netflix saying as to the criticism that they are caving to the saudis on this? >> it's a great point that this controversy is likely giving hassan and the specific episode even more publicity. you have to remember that people in saudi arabia can get ar

this is the biggest price hike for netflix customers. for some perspective on the increase, we are joined by ryan eldridge. while this may not make customers happy, it certainly made investors happy. >> this is sort of like bad news for 58 million subscribers. more than half of the u.s. households are going to be affected. if you are a current subscriber, it will take about three months to roll out. this is netflix preparing for the great streaming war of 2019. disney is coming out with their streaming service at the end of the year. they already face competition against hulu and amazon. at&t is also streaming. the increase is not that bad. for $11, that is what netflix was at. amazon is that $13. that is also bundled with their shipping. you can pay yearly. overall, netflix was the biggest bargain on the planet. they have to pay for all the original content. nearly 700 new shows just last year alone. that cost a lot of money. netflix has been going into a deep, dark, deadpool last year. raising their prices with the thing they had to do