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TechCheck

Breaking Down Netflix Earnings, iPod Inventor Talks Hardware & PayPal Explores Pinterest Acquisition

TechCheck

CNBC

Management, Cnbc, Tech, Faang, Investing, Business, Disruptors, Technology

4.566 Ratings

🗓️ 20 October 2021

⏱️ 46 minutes

🧾️ Download transcript

Summary

Our anchors start off the show with CNBC’s Julia Boorstin covering Netflix’s earnings released yesterday. Then, Moffett Nathanson Founding Partner Michael Nathanson joins for his take on the company post-earnings. We also cover a report that a Facebook name change may be on its way. Next, iPod Inventor and iPhone Co-Inventor Tony Fadell joins to discuss Big Tech’s hardware play. Plus, we cover a report that PayPal is exploring an acquisition of social media company Pinterest. Later, Baird Analyst Ben Kallo is here to talk Tesla ahead of the company’s earnings slated for after the bell. Also, we cover Adobe’s online shopping forecast for the 2021 holiday season and hear from the company’s Digital Experience Executive Vice President on the numbers. And later, MKM Partners’ Rohit Kulkarni joins for more on PayPal’s potential acquisition of Pinterest. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

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0:00.0

I'm John Ford. You're listening to CNBC's Tech Check. Our show is live weekdays at 11 a.m. Eastern. Listen in.

0:07.1

Good Wednesday morning. Welcome to Tech Check. I'm Carl Kintanilla with John Ford and Dear Grosso.

0:11.6

Today, a red light or a green light for investors. We're going to debate Netflix's results and its status as a volume shooter.

0:19.0

Then Facebook changing its name, some of our best ideas that

0:22.3

don't include the word the. Later on, the creator of the iPod and the iPhone, Tony Fidel

0:27.4

will tell us who is actually winning right now in Hardware, D.

0:31.4

Carl, we're also as always keeping our eye on stocks this morning. Major Index is back to record

0:35.8

highs, although tech is lagging. The now stack, though, still on pace for its sixth straight day of gains of about one-tenth of a percent. The S&P, meanwhile, on track for its largest monthly gain since last November. More on tech's biggest movers throughout the hour, including, of course, we can't get away from Netflix, John. Yeah, that's where we're going to start the feed this morning. A Netflix beat, just the second time in the last seven quarters.

0:58.6

Julia Borson's got more color on that subgrowth number. Julia?

1:04.3

Well, John, third quarter subscriber growth of 4.4 million beat the company's guidance by

1:09.7

nearly a million and fourth quarter guidance

1:11.8

for 8.5 million new subscribers that was right in line with expectations. Now, the stock

1:16.8

initially popped and then gave up gains as investors digested some signs of weakness. Now,

1:21.9

in the U.S. and Canada, it added only 70,000 new subscribers. And in Latin America, user growth slowed showing signs of

1:29.5

saturation in those two key markets. Now, fourth quarter earnings guidance did fall short of

1:34.9

expectations, 80 cents per share rather than the dollar 10 that analysts had anticipated. But co-CEO

1:41.7

Reid Hastings, who is wearing a squid game track suit during the

1:45.4

video call last night, he focused on the volume of premium content coming to the platform

1:50.8

and more opportunities to make money from Netflix franchises.

1:57.0

Imagine three years from now and, you know, some future Squid Game is launching and it comes along,

2:03.6

you know, with an incredible array of interactive or gaming options and it's all built into the service.

2:09.6

And then of course you've got your off Netflix aspects, the experiences that we're building out,

...

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