Listen: Netflix Earnings Were Superb. This Is Why the Stock Is Falling.
"Plus Netflix reporting earnings moments ago, fast money, friend in Luke ventures, founder Jean months, we'll be here to give us instant reaction in just a few minutes, and we start right there. With Netflix earnings streaming giant beating us mitzvah, come in with light guidance for the current quarter shares under pressure a bit after hours as we await the conference call it's really a sort of a video call which kicks off in about an hour's time. So as net flicks come too far too fast. And as competition heats up is this as good as it gets for the streaming joy in nationally Reed Hastings address competition of in the reliever. We actually alluded that last site. So it's interesting in stock was up big today. Obviously, maybe in sympathy Netflix style. Maybe people just squaring up ahead of earnings. But you tell me this earnings release the quarter was okay, but second quarter. That's you know, a few told me that ahead of time. It said, you know, gee, what's going to happen to Netflix with the second quarter guidance said says can be down fifteen to twenty dollars in here. It is down only a few. I'm actually really surprised it's trading as well as it is with that said, obviously that conference call comes up in about fifty eight minutes from now or so a lot can happen. But I gotta tell you that second quarter guidance was not great din. Dan, Nathan alluded to this last night about being saturated in the United States second quarter. Got guidance actually speaks to that get the stock is hanging in there. I'm very surprised even more surprising given the pipeline. They have in the second half. You would think that there would be more or an expectation of more subscribers when you have the crown coming on when you have another season stranger things. Oh, the competition matters to Netflix. I think they were I there I think that people will buy. We're talking about still hasn't come in the form of Disney, and yet the second quarter guidance is still in terms of subscriber all the polling says that people will keep net. Flicks will add on Disney will add on whatever else there is and they'll have a thicker skinny bundle. If that makes sense. I don't think it's going to hurt net. Flicks. You're going to have a whole bunch of these bundles. Well, I think they're gonna fix competitive landscape. And that's certainly part of what's going on here and five hundred sixty ads guide on the second quarter starts to get to a point his guy said you get into saturation or just look at what point is a growth multiple for a company, not really growing and the international subs. I realized there's a lot of opportunity out there. I also think the international culturally is a lot more wide open for someone like Disney and to be a real competitive threat. The problem with Netflix evaluation perspective to me is is is significant. But the bigger issue in terms of the competitive threat is we don't know too late twenty thousand nine or even twenty twenty just how much of a threat this is and now based upon how the stocks have traded. It's. A relative value trade. It's certainly been a trade where I think there's more sympathy towards Disney. So that the pop today was Deutsche Bank upgraded. The stock going in Bima raise the price targets that that certainly helped in terms of the sentiment going in here, but it's holding pretty well during this guidance. So why do you think that it's as"