Netflix Albuquerque Studios film and television production studio in Albuquerque, New Mexico.
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This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
consecutive winning weeks
All major U.S. stock indexes rose on Friday Winning for the sixth consecutive week. This is the longest streak this year S&P 500 Index and Dow Jones Industrial Averageboth hitting record highs. Asia-Pacific markets were mixed on Monday. China’s CSI 300 index rose about 0.5% as Beijing’s central bank further eased monetary policy.
central bank cuts interest rates
On Monday, the People’s Bank of China cut its key interest rate by 25 basis points. The prime one-year loan rate, which affects business and household loans, fell to 3.1%. The five-year LPR, which is linked to mortgage rates, was lowered to 3.6%. Pan Gongsheng, Governor of the People’s Bank of China, said on friday Banks will lower these rates.
Watch Netflix Share
Netflix The company’s shares rose 11% on Friday, a day after the company reported third-quarter results that topped earnings, revenue and paying membership expectations. Netflix’s ad-supported membership growth was a highlight of its report. Subscribers at this level grew 35% this quarter and accounted for 50% of new subscribers.
boeing vote
Strike at boeing companyThe incident has been going on for more than a month so far, costing Boeing an estimated $1 billion, but may be over soon. On Saturday, Boeing and its machinists union said they had reached a new contract proposal that would provide 35% pay increases over four years. The union is scheduled to vote on the deal on Wednesday.
(PRO) Consider Dividend Stocks
Global interest rates are falling. That means high-yield money market funds and bonds are likely to become more scarce. For investors who still want stable income, Morgan Stanley recommends considering dividend-income stocks and selecting 10 dividend stocks from the Asia-Pacific region (excluding Japan) for its “convinced list.”
bottom line
There’s a YouTube series called “I Love Watching” in which two people talk about Netflix show.
While the show has amassed a cult following due to its hosts’ quirky reactions, the show is essentially a show about a Netflix show. No one wants to watch “I Like to Watch” if the show they’re watching is culturally irrelevant, not immediately recognizable, or doesn’t have mass appeal. Netflix shows are usually all of the above.
Of course, the media streaming giant’s third-quarter earnings and revenue beat expectations. These numbers are important to investors. Netflix wants to look beyond subscriber numbers as a financial metric. But perhaps the greatest indicator of Netflix’s value is its subscriber count.
In fact, it may have been the growth of Netflix’s ad-supported membership tiers that got investors excited and helped push the stock up 11% on Friday. In the third quarter, subscribers to the advertising tier increased by 35% from the previous quarter, accounting for 50% of registrations.
Acquiring new users is not the same as increasing profits by increasing price plans or cutting costs. This means Netflix is attracting new customers that it wouldn’t otherwise have access to.
“It’s a good indicator that some of the growth that exited the market in 2022 is coming back,” Richard Broughton, executive director of Ampere Analysis, told CNBC.
It’s not just that more and more people are subscribing to Netflix. They watch a lot of Netflix: around 2 hours a day according to statistics JPMorgan Chase Analyst Doug Ames. Without advertising, this would be a meaningless statistic. But for ads, longer viewing times allow Netflix to charge advertisers more, thereby increasing revenue growth.
Many of us enjoy watching Netflix shows. Netflix stock is also worth watching given the company’s dominant position in the media and streaming industries.
—CNBC’s Sean Conlon, Ryan Browne, Lisa Kailai Han and Alex Harring contributed to this report.
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