Netflix and Morgan Stanley Earnings Reaction, Fox-Dominion $787.5M Settlement 4/19/23

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 19 April 2023

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber engaged in a wide-raging discussion about Netflix and the streaming landscape -- from the company's mixed results to the delay of its broader password sharing crackdown. Morgan Stanley shares declined despite better-than-expected quarterly results. Are the moves lower in both Netflix and MS justified? Also in focus: Fox News agrees to pay Dominion Voting Systems $787.5 million to settle a defamation lawsuit, Disney and Meta layoffs in the spotlight, Tesla cuts prices again, Elon Musk on AI and social media, United Airlines jumps on guidance. Squawk on the Street Disclaimer

Transcript

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0:00.0	It's Jim Kramer here. You're listening to the opening bell of CBC's Squawk on the Street.
0:04.7	Don't miss a minute of the action.
0:08.5	Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Kintenea with Jim Kramer,
0:12.0	David Faber, Post 9 of the New York Stock Exchange. Pre-market stumbling a bit as some of the
0:15.9	earnings not being greeted at well at companies like Morgan Stanley, Ally Financial,
0:20.7	synchrony, ASML.
0:22.3	Inflation also running hot in Europe. Our own two-year yield, 428 is the highest since mid-March.
0:28.1	Our roadmap's going to begin with Netflix, posting those mixed results, saying its broader
0:32.0	password sharing crackdown is on track for the current quarter. As for bank earnings, Morgan
0:36.8	Stanley is out with its quarterly results.
0:39.0	They did surpass what most analysts had been expecting, but the stock right now is down.
0:44.8	Fox News agrees to pay more than $787 million to Dominion.
0:50.1	That is settling a defamation lawsuit that was brought by the voting assistance company.
0:54.7	We're going to begin with Netflix this morning, mixed financial results, sub ads also coming in below
0:59.4	estimates. Co-CEO Ted Sarandos was on the call last night talking about the company's quarter.
1:06.3	On revenue and profit, we're growing. Not as fast as we believe we can, not as fast as we do on to, but we are growing and we're profitable. And we have a clear path to re-accelerate growth in both revenue and profit, and we're executing on it. You'll see a broader rollout of paid sharing in Q2, and we're going to continue to grow that ad business. And we also are aiming to continue to grow free cash flow.
1:28.6	As we said this year, we're going to generate about $3.5 billion in free cash and on increased margins.
1:34.6	So we had that 10% drop before the recovery last night, Jim. I think it was the JPM desk that said
1:39.4	take a chill pill. Yeah, I actually like that. Look, I like the quarter. I'll tell you why. The progression,
1:45.7	as he said, they'll be accelerating revenue growth. This whole story that maybe they're not
1:50.1	rolling out password changes fast enough. I mean, they're being very, I think they're being
1:54.6	very prudent. Was it like the old days when the quarter was about, did you watch this movie and how great was
	...

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