So, our next guest is going to be weighing in on Disney's billion-dollar deal with Open AI, dueling bids for Warner Brothers, and so much more this morning. Walter Isacson is here. Great to see you.Of course, Walter's Carella Weinberg advisory partner, Twolane University, history professor, CNBC contributor, uh, amazing writer and allaround great friend of ours. >> Help us understand. Let's go AI first.>> Obviously, >> you saw the the Disney story. Were you surprised. And what do you think it portrays.I was ...

Trustbusters should not rule Netflix out of the race, as many in Hollywood argue. It may be dominant in streaming, but it is a smaller actor in the new media landscape. Paramount is also stronger than it looks https://t.co/wqIeFRvVt9 ...

Group 1: IonQ - IonQ is a quantum computing company positioned in an early-stage market with growing interest from enterprises and governments seeking alternatives to classical computing [2] - The company offers commercially accessible quantum hardware through a cloud-based "quantum as a service" model, lowering adoption barriers for customers [3] - Analysts expect rapid revenue growth through 2026 as pilot projects convert into long-term commercial contracts, supported by partnerships with major cloud platforms like Microsoft Azure [3] - If quantum computing transitions from experimentation to practical applications, even modest adoption could significantly impact IonQ's financial profile and lead to a valuation re-rating [4] - Key risks include ongoing losses, share price volatility, and uncertainty regarding the timing of widespread quantum adoption [4] Group 2: Roku - Roku has transitioned from a streaming hardware business to a connected TV platform primarily driven by advertising and subscription revenue [7] - The platform revenue has outpaced overall growth due to increased streaming engagement and improved ad monetization [8] - The shift of advertising budgets from traditional television to streaming is a central tailwind, supported by Roku's large user base and expanding relationships with major advertisers [8] - Connected TV is one of the fastest-growing segments in digital advertising, and Roku's scale positions it to capture a growing share of that spend [9] - Improvements in ad technology and potential political advertising related to the U.S. midterm elections in 2026 could further enhance revenue and margins [9] - Risks include competition, uneven hardware performance, and exposure to cyclical advertising demand [9]

Core Viewpoint - Netflix has successfully completed a 10-for-1 forward stock split, indicating strong business performance and stock price growth, with an impressive 80,730% increase since its IPO in 2002 [1][9]. Company Performance - In Q3, Netflix reported a revenue increase of 17% year-over-year to $11.5 billion, with adjusted earnings per share (EPS) rising 27% to $6.87 [6]. - The company anticipates continued growth, projecting Q4 revenue of $11.96 billion and EPS of $5.45, reflecting a 28% increase [6]. Acquisition Plans - Netflix announced plans to acquire certain assets from Warner Bros. Discovery in a deal valued at $82.7 billion, which includes Warner Bros. film and television studios and HBO streaming services [9]. - The acquisition has been unanimously approved by both companies' boards but is pending regulatory approval [9]. Market Position and Analyst Sentiment - Despite concerns regarding the acquisition's price and integration risks, 67% of Wall Street analysts maintain a buy or strong buy rating for Netflix, with an average price target of $129, suggesting a potential upside of 34% [13]. - Netflix's stock is currently trading at a premium of 39 times earnings, which is lower than its average multiple of 45 over the past three years, making it more attractive [14]. Historical Context and Industry Trends - Netflix has transitioned from a DVD-by-mail service to a leading streaming platform, capitalizing on the decline of traditional broadcast and cable television [5]. - The company has a wealth of viewer data and a sophisticated recommendation algorithm, which will be leveraged to maximize the value from the Warner Bros. acquisition [12].

Core Insights - Netflix has demonstrated its ability to evolve, scale, and grow profitability simultaneously, marking 2025 as a pivotal year for the company [1][2] Group 1: Advertising Growth - The ad-supported tier has become a significant growth engine for Netflix, reaching 190 million monthly active viewers, positioning the company alongside traditional TV networks and major digital platforms [4][6] - Netflix's advertising strategy offers a mix of premium content and engaged audiences, enhancing its appeal to global brands seeking alternatives to traditional media [5][6] - The ad business is expected to reshape Netflix's earnings profile over the next five years as advertiser demand and monetization potential grow [6] Group 2: Financial Performance - Netflix achieved $11.5 billion in Q3 revenue, reflecting a 17.2% year-over-year increase, with free cash flow rising by 21% due to disciplined spending and operational efficiency [8][10] - The operating margin in Q3 exceeded guidance, increasing from 29.6% to above 31.5%, indicating strong financial health and confidence in both subscription and advertising performance [9][10] - The company has transitioned from hypergrowth to a mature, cash-generating business model, distinguishing itself in a competitive streaming landscape [10] Group 3: Increased Complexity and Risks - Netflix's decision to stop publicly reporting quarterly subscriber numbers has reduced transparency, which may complicate performance assessment amid intensifying competition [12] - The company is expanding into new verticals such as live sports and gaming, and is considering a $72 billion acquisition of Warner Bros., which introduces regulatory and integration challenges [13][14] - While Netflix's ambitions create long-term optionality, they also raise concerns about execution discipline and visibility into core performance metrics [14][16] Group 4: Future Outlook - Netflix's performance in 2025 indicates a strong position entering 2026, but the company faces higher expectations and must sustain its profitable growth amid a broader strategy [15][16] - Investors will need to monitor revenue quality, engagement trends, and cash flow stability as Netflix navigates its expanded business model [14][16]

Netflix and Warner Brothers Discovery announced that Netflix is buying Warner Brothers. $83 billion, huge deal. And then like out of nowhere, off the top rope, Paramount decides what it actually wants to do is launch a a hostile $108 billion bid to take over the whole company.And Netflix was the villain, right. Hollywood was furious that Netflix was going to buy Warner Brothers and take the Warner Brothers legacy and turn it all into streaming slop and d and then Paramount showed up. But now Netflix seems r ...

Netflix wants to buy just the Warner Bros. business. This means the $23.25 in cash and $4.50 in Netflix stock paid to WBD shareholders would apply only to the future shares held in the standalone Warner Bros. company. Warner Bros. Discovery shareholders would still get, and be able to keep, their shares in the new Discovery Global, post acquisition.That's not all. The Netflix deal is expected to take between 12 months and 18 months to close. Before then, Warner Bros. Discovery intends to complete its previo ...

Core Viewpoint - The competition for Warner Bros. Discovery's assets is intensifying between Netflix and Paramount Skydance, highlighting the high stakes in the streaming industry consolidation phase [1][2]. Netflix Acquisition Details - Netflix's proposed acquisition values Warner Bros. Discovery at $27.75 per share, with an enterprise value of $82.7 billion, offering $23.25 in cash and $4.50 in Netflix stock for each share [4]. - The deal includes a collar mechanism that affects the amount of Netflix stock shareholders will receive, depending on the stock's price prior to closing [5]. - The acquisition is expected to take 12 to 18 months to finalize, during which Warner Bros. Discovery plans to split into two publicly traded companies: Warner Bros. and Discovery Global [6][7]. Paramount Skydance's Offer - Paramount's offer has an enterprise value of $108.4 billion, proposing $30 per share in an all-cash deal that includes the entire Warner Bros. Discovery company [8][9]. - Paramount's bid avoids the uncertainties associated with Netflix's collar and suggests that Discovery Global may only be worth about $1 per share due to its debt [9]. - Paramount argues that Netflix's acquisition may face significant regulatory scrutiny, potentially blocking the deal [10]. Stock Valuation and Market Implications - The stock valuations of Netflix and Paramount have fluctuated, with both experiencing a drop in their price-to-sales ratios, while Warner Bros. Discovery's ratio has increased due to the bidding war [13][15]. - For Warner Bros. Discovery shareholders, the stock has gained 179% in 2025, making it a favorable time to sell amid the uncertainty of the acquisition outcome [16]. - If Netflix successfully acquires Warner Bros. Discovery, it would solidify its position as a dominant player in the entertainment sector, while Paramount's success could enhance its streaming capabilities [17][18]. Investment Outlook - Despite the ongoing acquisition battle, Netflix is viewed as the superior stock option currently, given its leadership in the streaming industry [19].

Retail investors talked up five hot stocks this week (Dec. 8 to Dec. 12) on X and Reddit's r/WallStreetBets, driven by earnings, retail hype, AI buzz, and corporate news flow.The stocks, Broadcom Inc. (NASDAQ:AVGO) , Oracle Corp. (NYSE:ORCL) , Netflix Inc. (NASDAQ:NFLX) , Carvana Co. (NYSE:CVNA) , and Microsoft Corp. (NASDAQ:TSLA) , spanning semiconductors, AI, software, streaming, and automotive, reflected diverse retail interests.BroadcomAVGO dominated headlines with its fiscal fourth quarter earnings rel ...

Retail investors talked up five hot stocks this week (Dec. 8 to Dec. 12) on X and Reddit's r/WallStreetBets, driven by earnings, retail hype, AI buzz, and corporate news flow.The stocks, Broadcom Inc. (NASDAQ:AVGO) , Oracle Corp. (NYSE:ORCL) , Netflix Inc. (NASDAQ:NFLX) , Carvana Co. (NYSE:CVNA) , and Microsoft Corp. (NASDAQ:TSLA) , spanning semiconductors, AI, software, streaming, and automotive, reflected diverse retail interests.BroadcomAVGO dominated headlines with its fiscal fourth quarter earnings rel ...