Joining us now for more, Peter Spino. He is senior media analyst at Wolf Research. Peter, you just heard that conversation.Let's kind of follow up from the stock side. Who do you think ultimately ends up with Warner Brothers Discovery, if anybody. And does it ultimately end up being broken up.>> Well, in our opinion, it's up to Netflix. Netflix has the most powerful currency in the industry with its stock. Uh, and Netflix has such a huge share of a streaming engagement that they can make the minutes and hou ...

Core Viewpoint - Netflix is reportedly considering a bid for Warner Bros Discovery (WBD) after WBD expressed openness to takeover offers, indicating a potential bidding war in the media industry [1][4][6] Group 1: Potential Bidders - Netflix is among the suitors interested in acquiring WBD, which owns popular franchises like Harry Potter and channels such as HBO and CNN [1][2] - Comcast has also been identified as a potential bidder for WBD [1] - The Ellison family, who control Paramount, have shown interest in merging WBD with Paramount, although a previous offer was rejected by WBD as too low [3][4] Group 2: Strategic Review and Market Response - WBD has initiated a comprehensive review of strategic alternatives, considering the sale of parts or the entire business after receiving unsolicited interest from multiple parties [5][6] - The company's shares rose by more than 11% following the announcement of its openness to a sale [6] Group 3: Industry Context - A potential acquisition of WBD by Netflix would mark a significant move by a tech company into Hollywood, following Amazon's acquisition of MGM for $8.5 billion in 2022 [2] - The restructuring of WBD's streaming and studio divisions reflects a shift in strategy, moving away from its previous focus on a planned spin-off by mid-2026 [5][7] - A merger between WBD and Paramount would significantly reshape the US media landscape, providing the scale needed to compete with major players like Netflix and Disney [8]

Welcome back to Fast Market here on Schwab Network. I'm Diane Kinghaul alongside Kevin Hinks over at the SIBO. Time now for our cash tag segment.Taking a look at Netflix. For that, we want to bring in our next guest that is Landon Swan, co-founder of Likefolio. All right, Landon, we've got earnings from Netflix due later today.Uh estimates are that revenue will top 11.5% billion. EPS expected to come in at 689 on adjusted basis. So, that's the backdrop.Um, I looked at your charts and and one of your charts ...

Market Catalysts - Current market tailwinds include strong earnings, discussions on tariff reductions, and declining interest rates and yields, which are contributing to maintaining near all-time highs [2][4][8] - Despite these tailwinds, the market is facing high valuations, which raises questions about investment timing and potential corrections [3][4] Risks and Headwinds - Overvaluation is a significant concern, with the potential for a topping pattern in the market [4][5] - Specific areas to watch include regional banks, consumer spending, and small-cap stocks, which are currently underperforming [6][7][8] - A potential correction of 10% to 15% could occur if consumer spending does not increase ahead of the holiday season [8][9] Company Insights - Apple is approaching a market cap of $4 trillion, and its performance is closely tied to consumer spending and technological advancements, particularly in AI [9][11][12] - Netflix is expected to report strong earnings, with potential growth linked to a possible acquisition of Warner Brothers, which could enhance its market position [13][14] - Tesla's performance is influenced by tariff discussions and its technical stock patterns, with a key price point at $465 for potential new highs [15] Investment Strategies - Current attractive investments include long bonds, infrastructure ETFs focused on pipelines, and companies like Stitch Fix and Match, which are adapting to market changes [16][17][18] - In commodities, patience is advised, with interest in gold and silver at psychological price points of $4,000 and $45 respectively [19][20] - Energy investments are shifting focus towards natural gas and uranium, with a balanced approach to traditional energy sources [21][22]

Core Insights - Netflix's upcoming third-quarter results are anticipated to reflect the success of its investments in original content, price increases, and advertising growth, with analysts generally optimistic about the stock's potential for further gains [1][7]. Financial Performance - Analysts expect Netflix to report earnings per share of $6.92 and revenue of $11.52 billion, with a majority rating the stock as a "buy" and an average target price of $1,400, indicating a potential upside of 13% from recent trading levels [2]. - The stock has experienced a significant increase of nearly 40% in 2025, outperforming the S&P 500's 15% gain, although it remains below its June peak of around $1,340 [3]. Industry Impact - As a leading player in the streaming sector, Netflix's performance is likely to influence other companies in the industry, such as Disney, and may highlight consumer spending resilience amid economic uncertainties [4]. - UBS analysts maintain a positive outlook on Netflix, citing expected growth from new memberships, price increases, and successful shows like "KPop Demon Hunters" and the return of "Squid Game" [5]. Content Strategy - Analysts express confidence in Netflix's fourth-quarter content lineup, which includes popular series like "The Witcher" and "Stranger Things," as well as NFL events, indicating a strategic focus on sports to drive growth [6]. Competitive Landscape - While some analysts from Morgan Stanley and Bank of America acknowledge competitive threats from AI-generated content and potential mergers in the industry, they still uphold "buy" ratings for Netflix, believing its scale will help maintain its leadership position in the near to mid-term [7].

Core Insights - Netflix is collaborating with Hasbro and Mattel to launch "KPop Demon Hunters" toys, capitalizing on the film's success, which has garnered over 325 million views globally, making it Netflix's most popular film to date [1][2] Group 1: Partnership Details - The partnership will enable Netflix to provide a range of consumer products based on the animated film, with Mattel focusing on dolls, action figures, and playsets, while Hasbro will produce plush toys, electronics, and board games [2] - There may be some overlap in product categories between Mattel and Hasbro, indicating a collaborative yet competitive approach in the toy market [2] Group 2: Product Launch Information - Mattel is currently accepting pre-orders for a three-pack of dolls featuring characters from the film, while Hasbro's initial offering is a "KPop Demon Hunters" themed Monopoly Deal game [3] - Merchandise from both companies is expected to be available in retail stores by spring 2026 [3] Group 3: Market Response - The collaboration is seen as a response to fan demand for related merchandise, as stated by Netflix's chief marketing officer, highlighting the strong consumer interest in the film's characters and themes [4]

Core Insights - Netflix has partnered with Mattel and Hasbro as global co-master toy licensees for the cultural phenomenon "KPop Demon Hunters," set to launch products in spring 2026 to meet fan demand [1][2][3] Company Partnerships - The collaboration with Mattel will include a wide range of KPop Demon Hunters-themed products such as dolls, action figures, and accessories, with a presale of a three-pack of HUNTR/X dolls starting November 12, 2025 [4][5] - Hasbro will introduce a product lineup featuring KPop Demon Hunters, including MONOPOLY Deal: KPop Demon Hunters, available for pre-order starting October 21, 2025, with shipping on January 1, 2026 [5][6] Cultural Impact - "KPop Demon Hunters," released in June 2025, has become Netflix's most popular film of all time with over 325 million views in 91 days and its soundtrack has been streamed 8.3 billion times globally [2][3] - The film's single "Golden" achieved the longest-running 1 hit by a girl group on the Billboard Hot 100 in the 21st century, highlighting its significant cultural resonance [2][3] Product Availability - Products from both Mattel and Hasbro will be available at retail starting spring 2026 and will continue through the holiday season of 2026 and beyond [6]

Luxury Market in China - Luxury brands are adapting to structural and generational changes in the Chinese market as GDP growth slows to 4.8% in Q3, the lowest in a year, influenced by a deflationary mindset and property slump affecting household wealth and consumer confidence [3] - Despite economic challenges, there is still a strong appetite for premium goods in lower-tier cities, with surprising vibrancy noted in places like Shantou, where foot traffic in upscale malls remains robust [5][6] - The luxury spending trend is shifting, with younger consumers in lower-tier cities first encountering luxury through Chinese brands rather than foreign names, indicating a new demographic engagement with luxury goods [6] Company Performance - 3M reported stronger-than-expected Q3 earnings and revenue, raising its full-year profit forecast and adjusting its 2025 EPS guidance to a range of $7.95 to $8.05, up from $7.75 to $8.00, due to stronger organic growth and margin expansion [7] - Coca-Cola exceeded organic sales estimates in Q3 and anticipates full-year organic sales growth of about 5% to 6% and EPS growth of about 3% [8] - Lockheed Martin surpassed Wall Street expectations for Q3 profit and revenue, driven by strong performance in aeronautics and missile programs, along with sustained demand from U.S. and allied defense customers [9] Media Industry Developments - Warner Bros. Discovery is open to a sale following interest from multiple parties, including Paramount Skydance, as they conduct a comprehensive review of strategic alternatives to unlock asset value [10] - Disney+ and Hulu experienced significant subscriber cancellations, with approximately 7 million customers leaving in response to Jimmy Kimmel's suspension, indicating a potential impact on subscriber growth and retention strategies [11] Stock Market Insights - Goldman Sachs has rebalanced its Buyback Aristocrat stocks, which have outperformed the equal-weight S&P 500 by an annualized average of 3 percentage points since 2012 and by 4 percentage points year-to-date [14] - The top five stocks by trailing 12-month buyback yield include Tapestry at 21%, Invesco at 19%, Aptiv and Globe Life at 16%, and GM at 15% [14]

Finally, today, uh, Netflix is reporting after the bell, later after the, uh, after the closing bell. Julia abortion is going to get us ready on what we might hear and how some of this morning's news, Julia, might play into the call. >> That's right, Carl.Well, with Warner Brothers Discovery now on the block, investors will turn to one of its potential buyers, Netflix, and the strength of its leadership in streaming. Analysts expect Netflix's revenue to grow 17%. That would be an acceleration from the 16% g ...

Core Insights - Netflix is expected to report a revenue growth of 17%, an acceleration from the previous quarter's 16%, with EPS anticipated to grow by 29% [2] Group 1: Viewer Engagement and Advertising - Key items to watch include trends in viewer engagement, particularly after previous concerns, with optimism surrounding the success of "K-pop Demon Hunters" [3] - Analysts are looking for updates on Netflix's new ad platform and its partnership with Amazon ads, forecasting that ads will contribute to 30% of the company's topline growth through 2030 [4] Group 2: M&A Considerations - Netflix is among the potential buyers for Warner Brothers Discovery, with sources indicating interest from other companies like Comcast and Paramount [5] - Despite Netflix management previously downplaying M&A, shareholder conversations suggest support for a deal, particularly to secure new content and libraries [5][9] - The valuation disparity between Netflix as a tech company and traditional media companies raises questions about the financial sense of an acquisition [9] Group 3: Stock Performance - Netflix shares have remained relatively flat since the last earnings report in July, but the stock has increased over 60% in the past year, with 69% of analysts maintaining a buy rating [6]