Financial Performance - Netflix reported Q3 EPS of $5.87, missing the estimate of $6.94, and Q3 revenue of $11.51 billion, slightly below the expected $11.52 billion [1][2] - For Q4, Netflix anticipates EPS of $5.45, slightly above the estimate of $5.42, and revenue of $11.96 billion, compared to the street's expectation of $11.9 billion [1][2] - Full-year revenue guidance was set at $45.1 billion, within the range of $44.8 billion to $45.2 billion [2] Engagement Metrics - Netflix experienced a significant surge in viewer engagement, with a reported increase of 20% to 22% in engagement metrics during Q3, driven by popular titles such as "K-pop Demon Hunters" and new seasons of "Squid Game" and "Wednesday" [8][10] - The company emphasized that engagement is a key metric for evaluating its performance, as it directly influences monetization and pricing power [10] Strategic Moves - There are reports suggesting Netflix's interest in acquiring parts of Warner Brothers Discovery, which could enhance its content library and subscriber engagement [3][12] - Historically, Netflix has been cautious with M&A, spending only about $1 to $1.5 billion on acquisitions, favoring a build versus buy strategy [13][15] AI and Content Production - Netflix is leveraging AI for content creation and user personalization, which is expected to be a tailwind for the company [17] - The use of AI could potentially reduce content production costs by 5% to 10%, translating to savings of approximately $1.5 billion to $2 billion over time, given Netflix's annual content budget of around $18 billion [18][19]

Group 1: Netflix - Loop Capital has upgraded Netflix from a hold to a buy, with a new price target of $1350, admitting that their prior downgrade was a mistake [2][5] - Year-to-date, Netflix shares have increased by over 30%, indicating strong performance in the streaming market [3] - Netflix's content strategy, including popular titles like "Squid Game" Season 3 and "Wednesday" Season 2, has led to exceptional engagement and revenue generation [3][4] - The company is expected to see stronger earnings and free cash flow, with raised Q3 estimates and an anticipated lift in full-year revenue guidance [5][6] Group 2: Workday - Workday's stock has been underperforming year-to-date, but recent developments have provided a tailwind for recovery [7][11] - An activist investor has disclosed a $2 billion stake in Workday, expressing confidence in the company's leadership and multi-year plan [8][9] - The board has approved a $4 billion increase in its buyback program, planning to repurchase $5 billion in shares through fiscal 2027 [9] - Workday announced a $1.1 billion acquisition of an AI workplace tools developer to enhance automation capabilities [10] Group 3: Zillow - Bernstein has upgraded Zillow to outperform, raising its price target to $105, citing better monetization and operating leverage [12][14] - Despite challenges in the housing market, Zillow's earnings momentum is highlighted, with expectations of falling rates potentially unlocking upside [13][14]