Business Decision & Financial Performance - CBS made a business decision regarding the show due to financial losses [1] - Despite high ratings, the show was reportedly losing money for CBS [1] - Advertising revenue for network TV, including the show, has significantly decreased [1] - Production costs for late-night shows were historically modest, making them profitable [1][2] Industry Trend & Audience Shift - Audience shift to online viewing has negatively impacted late-night shows [2] - The traditional late-night show model, with lower production costs, is challenged by changing viewing habits [1][2]

Financial Performance & Guidance - Netflix beat estimates and raised guidance, but the stock reaction was slightly negative [1][4] - Guggenheim Securities raises its target on Netflix to $450 from $400 with a buy rating [1] - The drivers of the beat and raise are sustainable, generating incremental momentum [6] Content Strategy & Engagement - Netflix is expanding shows, titles, genres, geographies, and formats to appeal to a broader audience [3] - Engagement, measured by hours consumed, grew modestly (1%) in the first six months compared to membership growth (close to double digits), raising concerns [7] - Engagement trends are expected to improve in the second half of the year due to a more robust content slate, including returning series and new films [8][9] - Live content and sports are increasingly important for long-term growth [10] Advertising - Advertising is growing at a very high rate and expected to more than double this year, becoming a more significant contributor to financials [11][12][13] - Netflix has built out its advertising technology and relationships, expecting growth in the back half of the year and into next year [13] Industry Dynamics - Paramount is facing challenges due to cord-cutting and a transition to a new ownership structure under Sky Dance [15] - Paramount has great assets and is hoped to be well-positioned after the transition [16]

Financial Metrics & Outlook - Netflix's operating margin is forecasted at 29% [1] - The company aims to be judged by normal financial metrics [4] - Focus shifts to content spending, efficiency improvements, cash flow, and earnings in place of subscriber numbers [5] Subscriber & Engagement Analysis - Netflix will no longer report subscriber numbers [1] - Engagement, especially with a strong second-half lineup, will be a key metric [1] - Subscriber growth in the US is largely saturated [5] Ad Revenue & Strategy - Netflix is focused on growing ad revenue on its platform [3] - The company is embracing live events like sports to boost the ad business [3] - Netflix is exploring ad-supported tiers, potentially generating more revenue per user than higher-priced, ad-free tiers if viewership is high enough [9] Competition - Competition from newer entrants like YouTube and TikTok is a point of interest [6] Stock Performance - Netflix's stock is up 41% year-to-date in 2025 [4] - There are questions about whether current expectations are already priced into the stock [4]

Sean McNelte is creator and writer of the Wake Up Entertainment Business newsletter at the Ankler. And Sean, it's great to see you. Um, look, it's almost like there's nothing to talk about because they're just firing on all cylinders.So, you know, what am I what am I missing. What what could be around the corner. Or is it, to quote the analyst last hour, has Netflix just become TV now.Uh, that's certainly true. You're talking about a service that's in probably about close to 90 million US homes, which is pr ...

Financial Performance - Netflix is expected to see mid-teens revenue growth [5] - Netflix is expecting 30% earnings growth this year [5] - Elevated earnings growth is expected to continue over the next few years [6] Advertising Strategy & Monetization - Netflix has significant room to grow in monetizing engagement [2] - Advertising growth is a key area of focus for understanding future growth [3] - Netflix's early stage advertising monetization allows revenue to flow to the bottom line [5] - Building in-house technology and partnering with third-party platforms like The Trade Desk allows for different ways to monetize inventory [8] - Netflix is in the early stages of advertising monetization compared to other streamers [8] Strategic Initiatives & Competitive Landscape - Netflix is leaning into advantages of the traditional ecosystem, like sporting events [10] - Disrupting traditional ecosystems with events like sports puts pressure on competitors [10]

Core Insights - The article discusses the author's investment strategy and portfolio, emphasizing a diverse range of stocks and unique insights into the market [1]. Group 1 - The author holds a long position in shares of GOOG and AMZN, indicating confidence in these companies' future performance [2]. - The analysis aims to provide contrasting views to help other investors make informed decisions [1]. - The author expresses personal opinions and does not receive compensation from any mentioned companies, ensuring an unbiased perspective [2]. Group 2 - The article serves as an informational resource rather than professional investment advice, urging readers to conduct their own research [3]. - It highlights the importance of due diligence in investment decisions due to inherent risks, including potential capital loss [3]. - The content does not guarantee future results, emphasizing that past performance is not indicative of future outcomes [4].

Company Restructuring and Strategy - Yahoo underwent a significant restructuring after spinning out of Verizon in September 2021, including re-establishing the company, restructuring operations, bringing in a new team, and redoing the revenue model [2] - Yahoo refocused on its original mission as a trusted guide to the internet, leveraging its history dating back to 1995 [6] - Yahoo's monetization strategy shifted to directly selling premium ads and re-establishing a salesforce, while also moving into subscription and leaning back into search [3] - Yahoo is partnering with almost every LLM and has launched AI products across its various platforms, including Yahoo Mail, Fantasy Sports, Finance, and News [25] M&A Activities - Yahoo sold assets like TechCrunch and Rivals, focusing on its news aggregator app [8] - Yahoo acquired Artifact, a news app founded by Instagram founders, to enhance its news aggregation capabilities [7][8] - Yahoo is open to M&A for adding verticals but hasn't found the right deal, particularly after considering frothy prices post-COVID [31][32] Competitive Landscape and Market Position - Yahoo competes with various companies in different verticals, leveraging its multiple properties [13] - Yahoo is still a top-five traffic property in the US and globally, even among Gen Z [12] - Yahoo emphasizes its first-party relationship with users, with 75% of impressions from logged-in users, leading to better conversion rates for advertisers [20] Advertising Market and Performance - Yahoo is seeing growth despite market challenges, attributing it to its turnaround and rebuilding efforts [17] - Yahoo's ad sales strategy includes direct sales and leveraging its DSP, competing with Trade Desk, Google DB3, and Amazon [14][15] - Yahoo announced a partnership with Netflix to add Netflix CTV inventory to its DSP [14][15] Future Plans - Yahoo is considering going public again, but is taking its time to improve valuation [33][36] - Yahoo believes AI will significantly change its products and is focused on being pro-publisher in the AI search framework [28][29]

Leadership Change - Linda Yaccarino is stepping down as CEO of X after two years in the role [2] - Yaccarino was tasked with repairing relationships with advertisers after Musk's acquisition and policy changes [3][4] - It is unclear who will replace Yaccarino as CEO [8][10] Financials and Valuation - Elon Musk bought Twitter for $44 billion in 2022 and renamed it X [3] - Musk sold X to his AI startup xAI in an all-stock deal that values X at $33 billion [3] - X does not release financials [4] Challenges and Opportunities - X lost advertisers after Musk fired employees and loosened restrictions on speech [4] - Yaccarino was seen as having more success attracting advertisers after Trump's reelection [4][8] - X faces challenges in competition for ad dollars with companies like Meta [8] Content and Controversy - Musk's Grok chatbot shared antisemitic posts on X [5] - Yaccarino had to deal with problematic content and comments from Elon Musk [7] - Yaccarino worked to ensure advertisers that X was a safe place for them to reach consumers [7]

🚨NEWS: Brands that partner with X see 66% more mentions than non-advertisersReach grows faster when you’re in the conversation https://t.co/sM1v66KN5m ...

Marketing & Advertising Strategy - Apple has pulled down four marketing videos in the past year, indicating potential issues with its current creative direction [2][3][5][6] - The company apologized for its "Crush" ad in May 2024 due to social media backlash over its symbolism [3][4] - Apple's recent marketing efforts are perceived as "punching down" at consumers rather than highlighting the benefits of its products [18] - A recent video aimed at convincing parents to buy MacBooks was criticized for weak arguments and outdated humor [8][9][10] Product & Technology - An iPhone 16 ad featuring Bella Ramsay was pulled because it showcased an Apple intelligence feature that was not functional and never released [6] - The MacBook's features, such as fingerprint readers and lightweight design, are no longer unique selling points compared to other laptops [9] - The argument for buying a Mac should be tied to a student's major and the software compatibility it offers [20] - The seamless integration of Apple products within the Apple ecosystem, such as Notes and Reminders syncing, is a key advantage [21] Brand Perception - Apple's advertising has shifted from showcasing coolness and innovation to trying too hard to impress, resembling the "PC" in its old "Mac vs PC" commercials [13][16] - The company's iconic ad campaigns, such as "1984" and "Think Different," highlighted freedom, creativity, and ease of use, which are lacking in recent ads [14][15]