melissa? >> yes enjoy. >> say it loud and proud enjoy! >> enjoy. >> come on are you and julia going to coordinate >> of course. >> that was a nice yellow. text me. >> "squawk on the street" is next good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures look to build on the best day for the dow in about a month. nasdaq could be dinged a bit by the netflix earnings disaster. maybe yields will help tesla earnings tonight road map begins with the netflix shocker. shares plummeting premarket sending other streaming stocks lower, too.

>> overall, stocks are set to open higher after posting what was the best day we saw in the month for the market digesting quarterly reports from ibm and p & g. it we're looking ahead to united airlines and tesla lululemon out with plans to double shares in the next four years. we start with netflix. first sub loss in a decade it took a big toll on the stock. password sharing among the issues reed hastings addressed it on the call. >> working on how to monetize sharing. we've been thinking about that for a couple of years. when we were growing fast, it wasn't the high priority to work on now we're working super hard on it and, you know, remember these are over 100 million households that already are choosing to view netflix they love the service. we have to get paid, you know,

for them. >> at least nine downgrades this morning, jim some of the price targets being cut in half today. >> yeah. look, it was -- for those who got used to the calls in the last nine years, this was a call that was much more like a call you hear from, say, illinois tool works. >> okay. >> explain what you mean. >> it's like the gross margins will be okay don't worry. we're still a good fre cash flow we have to monetize something that we never told you was we needed to monetize before which was the sharing. you know, the total adjustable market is still good but we don't know they throw in the comment about advertising. it was not the focus technology is beyond their control. other people might have better technology maybe it was a conference call

that is from, you know, most recent -- they talked about technology they did the same thing on netflix. i didn't feel like they gave me anything to hang my hat on. >> i will say in your defense yesterday i pointed out 44% decline thus far in the stock for the year and you had every chance to say bye for the brint and you didn't you pointed out your own behavior, i think it's indicative of nothing but nonetheless watching a lot of hulu and hbo max, too. back to the call itself. >> depressing. >> they don't seem to know what is happening. >> no. that came across, i think, at least that's the take away from any number of people i've spoken to this morning. some of whom unfortunately even own the stock. they don't seem to know what is happening. this is a management that seemed to be one step ahead. >> yes that's a great point

i mean, they'll tell you that they didn't see certain things coming but that should have been obvious. you know, when you go on -- i don't mean to -- it was a great company. but if you go on a zoom call, zoom saw it coming docusign didn't see it coming. peloton. i mean, this was a conference called. >> they did say long ago covid was going to pull forward demand they are clear about that. >> pull forward. yes. pull forward you would have thought that maybe it could be flat it was the numbers. >> where is the total addressable market now is it what it has been >> where the pockets of growth we assume would be available not the u.s. nobody suspect there had would be a decline in the

subscribers. india? that didn't show up. what are you seeing the willingness for the consumers to spend now. how challenged is the consumer i'm not getting anything from them. >> i'll give them what they have to do. all right. right here they should say, okay, we have a hit that has the same size as a super bowl view. you'll see ads when you see it. they have to be able to pivot. instead of being so arrogant it was okay, listen, you want to watch squid games? between number 4 and 5 game, you see an ad. take it or leave it. when they have something that is big, they can give you ads and they can charge a portion. >> they also need to not allow people to binge watch in a safe way. with "stranger things. >> yeah. >> people turn off they binge and then leave. >> that's the problem. they have all the different programs but they're one off

right. >> i mean, $17 billion a year. >> $18 billion. >> far more than any content company out there. it doesn't seem to be attracting new subscribers >>well, i mean, i think definitely not but i think what has to happen is a lot of people would say, look, the gaming hasn't worked. >> yeah. it's early for that. >> okay. it's early. >> i'm not, i mean, they have to have -- they have not monetized 500 million viewers. what are they thinking what are they thinking we won't watch an ad to see who wins in squid games? they have these programs "ozark." i mean, on the kompb fence call it was sad i thought we were doing well we're not. your sister is the fault

your cousin. i blame your -- >> sharing passwords. >> i blame your brother. >> yeah. the spift on ad sales which reed haasings said -- here is what he said last night. >> allowing consumers who would like to have a lower price and are advertising tolerant get what they want it make as lot of sense. so that's something we're looking at now we're trying to figure out over the next year or two but think of us as open to offering even lower prices with advertising as a consumer choice. >>yeah

i mean, to throw-out advertising is an afterthought, david. it was a dates counted conference call you expect from a company that lost the way and doesn't have a game plan. >> right they don't seem to know what is happening the way they have in the past therefore it makes it more difficult to navigate. the stock price. you see maybe down adds much as 28%. we're around $250 a share, of course it's a disaster for anybody who owns it, at this point we'll get to the effects it'll have on on some of the other streamers. how you go about trying to value the company. it was a mid teens top line grower now perhaps closer to a 10% grower if you're lucky. total adjustable market maybe it's the same. maybe it's not quite the same as it was there was a 300 basis point margin improvement expected. that's gone. >> right. >> it traded at 27 times earnings i think that is around 20 times earnings and all the analysts -- >> 20 times. >> yeah. now downgrades they don't know what to do they have no idea.

there were absolutely no help. given they were very positive on the stock going into the print. >> right i think there's a big belief, david, that if you start valuing the earnings, then it's got to go down even more. >> what am i supposed to value in it's not a growth company anymore. i don't know if you got the memo. >> no. i got the memo we don't have the music. they won't let us play music it's key to the penguins it indicated all of those wall street firms that suddenly jump off the icebergs into the cold water after having buys. and we got nine of them today. all though laura martin stands out. she's been negative and now goes positive today. >> that was good. >> yeah. really good. >> yeah. >> but look at sports betting. there are ways to actually do different kinds of pricing remember mccarthy came in peloton said question do

different kinds. maybe they have to do heavy user pricing. >> yeah. and citi has a bullish note. >> yeah. we have something big in korea and we'll make it there's a cliff hanger and you have to watch commercials. maybe three or four. those commercials will go for a fortune. the fact is, they're the least creative people on earth >>well, that's not true. >> no. the model. >> all right not the programming. >> the pricing power there was a belief they raised prices again they had it. but, you know, they lost u.s. subs after they raised prices. >> they have to do something that none of us would like to do content by content "ozark" as it gets more viewers, they get advertising

the idea for hulu is a bad idea. it's ads or no ads you never want to do that. you want to monetize your great programming with ads now the fact they didn't say that it was a complete failure of imagination failure. >> all right well laura har tin's point where it's the ad tier or sports and news or acquiring a large library, it's something all of their rivals do. at least one of those things they thought they were unique, i guess. >> yeah. i feel like they do it -- >> formula 1. >> yeah. okay >> great stock, by the way, this year. >> yeah. that's true. that's great. >> yeah. they love it. >> yes but formula 1, carl, is sports adjacent so on the conference call saying what about sports. he said no not interested not interested that's not acceptable. >> okay. >> one thing you haven't mentioned, jim, is m & a

chatter. we talked about it this morning. doug castro's note how it's unlikely where is your mind >> well, for doing what? they would buy something >> or be a target. >> oh. >> it'll have 100 plus billion market share >> i was going over the anti-trust okay >> yeah. >> you know you can get away with buying something. this is what he felt the far left would do only if there was a chance of failure. that's what the far left is going to do. >> well nobody is buying netflix. >> right i agree with that. >> i mean, it's a huge company. >> how about apple plus? >> how about it? >> it's not -- by the way -- the fact they left it out. they left it out.

>> i don't know who the he is here. >> reed hastings. >> he didn't -- >> yeah. >> okay. thank you. talk about the other streamers, though of course we'll keep an eye on shares of disney you were talking about on "squawk box. paramount got to keep an eye on. >> right. >> warner bros./discovery. listen this is a wake up call for any investor who somehow believed direct to consumer was the absolute key in terms of the profitability. it is the focus for investors. it has been for some time. the sub metrics that has been -- that we've all come to live with and focus on so much but profitability is always been a question now the question becomes one of growth overall. i don't know paramount with the library they have. how much they're spending when you get to free cash flow

positive our parent company with peacock and ad support and service and nonetheless spending $2.5 billion and en disney with all of its different businesses, no doubt, direct to consumer, of course, has risen up to become by far the most important single component for investors. >> the stock is where it was when it was announced. >> right. >> disney plus remember a lot of it was to say, listen, we're not going to -- with espn. >> right they have ip look at it this way, theme parks you can't get it. >> i know. what is is a netflix theme park? squid games. >> they don't have one that's the point by the way they'll start talking about the linear cable businesses. >> no. >> yes, they have to they have to pivot and not talk about the money they're spending. >> how about -- >> what is the discounted cash flow going to look like? >> how about the franchises?

>> that's disney. >> yeah. disney has an edge i don't know what netflix is going to do. "ozark" theme park tinder theme park. i don't know don't tell me there's music. no, we're not going to break we have not covered ibm -- >> we'll get to that. >> proctor should be higher. that's the name for the travel trust. the music is completely inappropriate. >> we have a b block this was the a block you can do those you have to pace them. >> oh, okay. i'm sorry. >> make it nice and easy we'll get to proctor best annual sales jump in 20 years. along with ibm, as jim said, we'll get calls on meta, airbnb, snap, apple, and me.or we try to build on tuesday's rally. don't go away. the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity.

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two dow components with better than expected results you have ibm with the lift in the cloud business and proctor raising their organic sales guidance the ceos of both companies will be guests on "closing bell" today at 3:00 p.m. eastern time. some of the internals on proctor health care up 16, baby up 10, fabric home up 10. because of 4x and the costs, full year eps core eps at the low end, they said. >> they did $2.5 billion in inflationary costs

yesterday the stock was down big. they had all the same problems they said it's going to get better if proctor said it's going to get better and you buy it at 158 oar 159. you love it. grooming 8 remember when grooming used to be bad fabric and home care up 10 but what they did is put the price increases. they're able to outrun raw costs. this is one where the wise guys say the raw costs are bad. what matters is can you outrun the raw costs? they are probably one of four or five companies that have such pricing flexibility they can a lot of their game was price

increase but the travel trust was up. we'll make more money. >> what does -- how does it reflect on the willingness of the consumer to continue to spend even with inflation? >> same. willing to pay any price even gillette. >> they're happier to do that than pay for netflix, i guess. >> brands matter they have good brands. >> they do >> there's been no trade down, david. one of the things that is incredible is no trade down. i find it incredible. >> it speaks well of the consumer's ability to stand up and continue to buy in the face of 8.5% cpi. >> it's the same consumer that brian moynihan described on "mad money. by the way, cost goes up big they're a competitor i love the kirkland brand. proctor is selling itself pretty well i have to tell you, the negativity is exactly what

happened with j & j and suddenly people said, oh, my god. they're really good. the stock is up 1015 points. >> how about ibm we had katie huberty say it was a good place to hide. >> she's right that was up before that surprised me. there's a lot of different lines. consulting was good. those who say it wasn't good, i think, were missing the point. software you can see in the street nicely 5.7 versus 5.6 that was very good there's a little confusion about what is going to happen. here is the key point i love they have a contract with mcdonalds. all right. they're using artificial intelligence to make it so the orders are taken by basically ibm. they save two heads. they have the same level of success that individuals do. talk about a product that, you know, the franchise is basically

saving a fortune this is going to be rolled out really soon. people are saying this isn't ibm. the old ibm. imagine what they can do with mcdonalds. the company has come up with artificial intelligence for day-to-day solutions that matter it's inexpensive the people who are negative on it, they'll miss the bus i missed the whole fillies game. >> that's unfortunate. >> i'm going to the commanders. >> commanders? >> what is it? >> commanders. >> i'm going to the game now the cleveland thing. >> oh, okay. guardians of the galaxy. >> guardians. >> i'm trying to stay focussed. >> you're staying focussed >> is there an off season game >> spring training i'm going to a yankee game. >> what does that have to do with the cleveland football team >> that's the washington football team.

>> oh. >> guardians of galaxy -- >> what does that have to do with the movie >> thankfully we have to take a break. we'll get cramer's mad dash and count down to the opening bell as futures ctie onnuto look pretty good on this wednesday. don't go away. wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq yeah... oh. don't worry i got it! as a main street bank, pnc has helped over 7 million kids develop their passion for learning through our grow up great initiative. and now, we're providing billions of dollars for affordable home lending programs... as part of 88 billion to support underserved communities... including loans for small businesses

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best day in about a month for the dow yesterday which has going green for april. will add some more today that's what futures suggest. you have the vix approaching 20 again. pretty interesting we'll talk more about b of a's call to go along the 10-year at thoiis pnt opening bell is four and a half minutes away

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smo. >> everyone will look at netflix

and make decisions they ought to be looking at asm. itst a company that is key to semiconductor capital driven numbers. people are looking at the number of earnings. forget it. turn to the outlook page and see strong demand drives net growth around 0%. i was not looking for 20%. we've been believing that demand has peaked for semis. >> yes. >> and armageddon. what this tells me there's strong demand and we shouldn't make the judgment. >> this is more about the making of semis. >> right is if over are we close to the end? >> i think we are. [ cheers and applause ]

we'll get the opening bell at the cnbc real time exchange >>well, i don't know what do you go there and what do they have? >> you've never been to one? >> so what is going on, david -- >> in like 19 states. >> yeah. all over the place including apparently new jersey. >> right. >> as of tomorrow. >> as of tomorrow. >> yeah. i don't smoke cigarettes. >> you shouldn't i have never either. >> some are in edible fashion, too. >> colorado and oregon

okay >> new etf launches today. the ticker is weed, i think. and i think we'll talk to erwin simon later on today. >> yeah. and tesla earnings tonight. >> yeah. is it coincidence or no? >> no. look twitter in his -- there's ibm doing the right thing up 6 obviously, david, twitter if he says here is my new best and final. i think they'll go for it. >> they might. that's for sure. no doubt about that. [ cheers and applause ] he did tweet last night that netflix isn't watchable. the woke mind machine. >> woke? >> what does it mean

>> i don't know. what i watch don't have a lot. >> mind machine? >> yeah. i think their problem, in part, there's not much great stuff on there. there's a lot but what have you watched lately that was great. >> ted lasso. >> it was on apple tv. you know that. >> of course elizabeth -- >> that was excellent, as well no "squid games. i remember when you were about narcos it was so great. i revisited this weekend reed has to say it's working i want to go right now to select companies. like to i don't know modelo. i think the arkansas gans has caught them. they can resurrect this when they have a real hit bridgerton people watched that.

>> that is watched in fact, a lot in my household by female members of my household. that's true. >> it's very tasteful. i know you have an idea here not going to listen to you just the way the companies don't listen to you. and they should on some of the things. >> if i was with goldman they would pay me $20 million. >> let's get back to netflix. >> market trying to figure out what netflix is worth. what kind of multiple do you put on that's is used to have the top line growth that doesn't anymore. it doesn't seem to have handle the on the business anymore. that no longer has the basis point margin improvement that people had anticipated what do you value it at? $242 i guess right now

there was a period of time it was far larger than disney don't forget it's down. >> this is a year and a half low this morning year to date loss now at 20% you have fantastic theme parks and espn plus. >> you have to move the conversation away with the $230 billion. >> i never wanted that. >> that was the decision of the ceo. >> i tried it's hard when the parks were closed. >> right 2020 was a great year for the

stock. no one listens to me. >> disney is down less than paramount which stake the future on paramount plus and the possibilities of streaming platform spending a lot of money as we know it brks unclear about the ultimate profitability of the business when your subscriber base is not as sticky as you hoped for and when it may be more difficult to actually grow as quickly as you would hope just content pouring content into it move the needle i don't know netflix would say maybe not. you can't compare because they are so large their addressable market they addressed a lot of it. at least certainly in the united states you can see what is happening to paramount now as investors request from a discounted cash flow model

stock is down. does it make sense disney plus negative? >> no. [ applause ] >> you should sell disney and netflix and proctor and gamble and everything why don't you throw in nvidia. sell nvidia. what do you want me to do? be like everybody else >> no. i want you to be you i bank on you being you. >> all recommendations if you're not interested. >> by the way your point is an interesting one. >> what did i do right >> everybody is bearish, it seems like. >> that's my point

the best way to stop is never to start. >> right with everybody bearish, maybe it's not a bad sign. >> that's my sign. yesterday i talked about every single note is the market exploded higher. at a certain point, other than ukraine if the u.s. government were to help give ten times. remember when bill ackman bought it after their first after their earnings report sunk the stock. >> i'm not worried. >> it's going to be a negative phone call >> from who? >> francis -- what is his name the henchman

>> i don't know. >> bill calls me if he needs me. >>er fectly nice conversation. >> nobody cares. >> they did fill the gap from earnings yesterday that's right speaking of jpmorgan, it was marco their global macro strategies who said, jim, that the rate a lot was priced in on rates. then mentioned b of a. if that works, you want to start to buy the nasdaq here. >> i totally agree. >> you raise a good point on the banks for a moment i had moynihan on last night i've never heard him be this bullish. wells fargo will do better, if they raise rates.

>> better if what? >> they raise rates. >> okay. >> i'm saying wells fargo is a consent -- >> do they still this year -- >> wells is can be the the one the single best. they're american coen sumer. >> right i don't know if you reprice the checking account look what they can do you invest in the 2 year and pay the customers.25 i think you make good money there. >> i look at the bond market today. something we haven't talked about often is how much people lost in their bond funds this year oftentimes the losses exceed that of stocks you're done 8% in a lot of funds. maybe more. >> yeah. you got in them. risk free. >> yes you should have gotten in

proctor. they have a good dividend. >> yes this weekend is the beginning of gardening weekend. >> okay. >> it's their christmas. if the stores look good, you'll say wait a second. i thought it was home improvement. home depot stocks are good costco has been going up. >> i was going to say. back up of 600 $12 away from a new high wouldn't take much. >> no. wehaven't mentioned lulu of 12.5 billion. >> they're going to make that. i mean, a lot is men's they have great direct to consumer they're so good. no one is buying it today. we have calvin mcdonald?

>> tomorrow. >> we haven't done that in three years! it's happening even before he became ceo i was working on it. what a win what a win know how many people wanted him? ha-ha. ha-ha. [ laughter ] >> i make calls around the clock. >> i'm well ware. >> it would be nice if jamie dimon came here. >> that would be incredible. >> i think he should. >> that would be amazing. >> if it does, my efforts to succeed -- >> even if it wasn't your efforts, i would still share it

with you. >> can i say another one i like? i do it to irritate david. >> yep. >> meta. i think facebook will have the last bad quarter. >> whatever happened to faang? >> we're losing a lot of components. >> or mana citi, by the way, ups meta to buy. by the way, it did have its own 20% drop this year. >> right and brazilian problem. give me a break. tiktok is going to be overrun by reels. the roi of instagram is better than it's ever been. they've already put out the costs, which are going to be bad. they are solve, the first party issue by q3. it's hated more than it was when people decided that. you know, they didn't care about whatever. >> still spending an enormous amount of money on the metaverse. it's years away.

>> yeah. >> that's dead wrong. >> really? >> dead wrong. they got nvidia. >> there's an item zuckerberg will have a gaming announcement at 1:00 p.m. eastern on the meta quest showcase we'll see what it brings. >> people laugh at him has that paid off? remember people said snap is going to win remember when he came on did he go to college to get stupid >> he didn't finish college. >> it went pretty well. >> i don't people doubt -- >> look at that. look at that stock price. >> yeah. they doubt it because the growth rate came down dramatically. >> i think to accelerate in the third quarter. i think everybody is thinking

they have to guide down. what is going to happen is last bad quarter. you were not positive on n netflix. >> no. get your 20 words i can block. i'm going to block all of them. netflix hasn't found a bottom.

>> no. maybe they can tell us. >> stock it down 60% for the year this is a day we'll remember, though, when it comes to streaming direct to consumer. >> no, it is it's going to have a impact. not just netflix but any number of the companies. >> let's go back i think that's a mistake i think that disney before disney plus it was not worth more than that. >> you have to have the services there's no doubt of course you do of course you do how much are you spending to support them what is their ultimate profitability going to be? >> well, you have disney plus. you have espn plus, if you're

doing 155 people does fantasy. itst a must. they resigned schefter. >> that's good >> $10 million a year they pay him? why i don't know i'm saying he's worth it. >> oh. i look at espn plus every day. you tell me it's not worth something? i go back to you the fact is, i think that the idea that disney is worth less with disney plus is fanciful. >> even with the cost of the content? >> yes it's a drag on the dow by the way, it has now gained 700 points. >> yeah. in a couple of days. back above the 200. >> yeah. >> i'm here for you. no matter what you can't push me away.

>> stuck with him. >> let's get to bob. >> good morning. i'm not liking what i'm seeing we're coming off the highs remember we with have two strong days in a row. disney is down home depot is doing great. a stock beaten up. so a nice start for the dow. what i like is the sectors now remember i showed you yesterday. the transports, the russell 2,000, the semiconductors, all have been in a down trend for the last three weeks yesterday that turned around still today all though we're off the highs from the opening industrials stabilize, as well beginning yesterday. they're having a good one. so this is all excellent take a look at the s&p 500 remember the last three weeks we're down 6% going into the open yesterday that's a down trend, folks and we turned around yesterday what you want to watch here is the close today. what might be going on why is that? take a look at what is going on.

two strong up days now we haven't seen that in awhile i called around yesterday and said why is this cathie wood stuffing maybe there will be hopes for a softer landing maybe the fed can do this better and all the growth stuff did a little bit better. the reopening stuff did better watch the close today. if we end up up 30 on the s&p, now we have a little bit of an uptrend and this kind of narrative will gain more if we end down 30 points or down 50 points in the s&p, they'll say you'll see it was a bear market rally you get those. they go up one day and the down trend continues. if you look at the stuff not doing anything today no rebound in cathie wood stocks that had a great day yesterday a lot of people were saying good news

it may be because of the multiple compression with netflix. that's happening to her stocks over the past several months it may be an effect. but they're not participating in this rally today elsewhere we had new highs in some of these other names that are essentially defensive names. it's been the case for awhile. walmart, general mills, and utility stocks is essentially where the new high list is don't kid yourself two day turn around in semiconductors is not going to put anybody in that sector on the new high list. it's really defensive names. we'll have a discussion about peak streaming here is an interesting survey done by dan follow an online discussion forum these are active streamers so the average streamer has five streaming services out there only 45% are willing to consider adding another one 75 percent are considering dropping one or more services.

read that. these are people involved in streaming. only 75% -- only 45% want to add more 75% are considering dropping i think we know we have too many streaming services i don't know about you, carl, i lost track of how many i have. i need an app to tell me how many track i need an app to tell tell me how many i have. and i think you'll hear about the great cancelation that is slowly going to be gathering steam based on what we're hearing here back to you. >> thank you bob pisani let's check out bonds today. we talks about the b of a call on 10-year back below 2-9 for sure. we have 2.89 there and we'll look at daily, evans and bostick and beige book and powell log ard tomorrow. and netflix is down almost 33%

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just quickly, kenny reed comes out today and this is a little cautious. be cautious about china but don't worry they're going to deliver. and i say she's right as always. she was right on ibm. >> she's right >> she got it. we'll see you tonight. >> thank you. >> "mad money" at 6:00 p.m. eastern time netflix tumbling in the third worst day ever in the 20-year history. don't gonyer awhe.

the bad guys is the winner of the truly moving picture award. oh, stop! you making me blush. it's an action packed animated adventure. show the world that you're more than just a scary stereotype. everyone will love. is this wagging? - good right? welcome back to squawk on the street i'm diana with breaking housing news existing home sales in march fell 2.7% to a seasonally adjusted annualized rate of 5.77 million units according to the national association of realtors sales were down 4.5% from the year before. that is slightly better than the street expected but only because february saw a larger than

expected downward revision at the end of march, there were 950,000 homes for sale and 9.5% drop from the year before. at the current sales pace, that is just a two-month suppoly and that is keeping pressure on prices despite higher mortgage rates. the median price of a home sold in march was $375,300 and an increase of 15% from march of last year and that is the highest price reporting back to 1968 these are based on closing, so contracts likely signs in january and february when mortgage raetzs from 3.29 to 3.9% according to mortgage news daily and now shot up at 5.35% but we're not seeing the effect ofs of that yet. and buyer traffic to home this month is down 19% from a year ago. so carl, maybe now we're seeing that effect of rising rates.

>> diana appreciate it that. good wednesday morning welcome to another hour of the squawk on the street best back-to-back gains for the s&p in about a month but some of the opening gains have been lost here. obviously a lot of focus on the netflix earnings disaster and tesla and ual tonight, morgan. >> that is right we're 30 minutes into the trading session and we're going to get to netflix but here are three other big movers blue chip ibm beating on both the top and bottom lines, growing revenue 8% the company getting a boost and now expect sales to come in at the high end of the full year forecast the shares are about 4.5% right now. and proctor and gamble topping earnings expectations with a bigger year in two decades: p&g raising organic sale guidance and price hikes helped quite as

bit. and we'll end with lululemon focus on the mens and digital operations tomorrow morning don't miss our exclusive interview with lulu ceo calvin mcdonald at 9:30 a.m. east david. >> thanks, morgan. we'll turn to netflix. those shares are down some 36% right now. it is a historically bad day for what had once been a growth stock darling after reporting the first decline in paid users in more than a decade. would you point out as well the company's market value below $100 billion and at the 52-week high the market value was over $300 billion our julia boorstin has more on this horrible quarter that is being reflected in that incredible loss in market cap. julia. >> netflix shares down more than 35% after the company lost 200,000 subscribers instead of adding the 2.7 million subscribers that analysts had

projected an the company said things are going to get worse. netflix guided to the loss of 2 million subs in the second quarter instead of the addition of 2.6 millionin a analysts ha been looking for reed hastings saying he is open to advertising this is a 180 on her prior anti--ad stance, a key way to give consumers a lower cost choice. >> allowing consumers who would like to have a lower price and are advertising tolerant, get what they want, makes a lot of sense. so that is something that we're looking at now we're trying to figure out over the next year or two, but think of us as quite open to offering even lower prices with advertising as a consumer choice >> as for the company's overall slower revenue growth, netflix citing a number of factors driving that including market penetration, competition, sluggish economic growth and

inflation and password sharing, passwords being shared to 100 million additional households. co-ceo ted serranos saying they are working to improve the quality of programming and recommendations. >> we've got to continue to invest in the content, both in the quality and the variety of the content. and our -- we will continue to grow the content spend relative to prior years and i think in general we look at the -- what is most important is the impact that is slight and we're focus on making sure the impact of the slate continues to grow. >> netflix is shortfall and the stock decline is dragging on other streaming stocks we see roku shares down 8% and disney down 5% and warmer brothers discovery trading down 5% so we'll have to see if the other streaming companies show similar declines or whether they

may be stealing share from netflix. >> incredible, julia thank you we'll stay with netflix aptd joining by key bank justin haverson and mark mahoney. it is great to see you mark, you right that some of the monetization efforts are likely to be '23 and 2024 path to a material rerating. what do you think happened here? >> well this company hit maturity competitive challenges and in the one market in the world where they are least penetrated, asia pack, i think they have a lot of challenges. whether it is content matching, gdp for economic issues and content matching issues. this is a company that i think has had wonderful vision they invented streaming. they had wonderful pivots told content and local language shows but they came up short when it

came to the next pivot they're catching up with advertising now. i think they should have been layering this in a year ago or more and it just seems like their scrambling i think it will work for them. but we're talking about a year or two out so in the meantime you have a stock rolling along here, 10% growth and i doan think there is a lot of upside. i expect it to trade in line with the markets for the foreseeable future. >> justin, do you blame them for having blinders on for a long time it was we welcome the competition, it is a flywheel effect as streaming comes and how could they be so blind to the ways in which other rivals had advantaged? >> i agree it is nannal gus that we're seeing through other models. if you go back to 2019, grub hub had said for many years that competition was not an issue and that was a material d rating

so with the hyper growth businesses that have benefiting from early stages of market penetration, moving up the s-curve, it is easy to have the blinders on and miss changes in competition that are happening with more time spend in market we've seen that netflix has had less viewing hours bridgerton was barely up basically flattish in hours consumed but butcher 2 had hours down for season two versus season one despite a much larger sub-base so i think they are overindexed on total hours consumed an it is a much trickier proposition. cou continent has not traveled well toward asia and they're spending north of $17 billion a year and how do they improve that ratio

>> it raises questions about quantity versus quality. where that content is concerned, too. mark, i just want to go back to the advertising piece of the puzzle you do see advertisers likomy come and others that are tradsing higher, is there for netflix to play catch-up and launch an ad-based tier that they'll have to do some m&a here >> i don't think they need to. and i think this is a good strategic step on their part to layer in a supportive model. they don't need it in north america. many are watching netflix so it is not like they need it in the u.s. but they could use it certainly in international markets maybe in the asia-pacific. and it does seem just based on the the commentary last night that this is a very recentidea that has come to management. so that is a little bit

disappointing. i don't think they need to do an acquisition, i think they could generate a reasonable amount of revenue. you could look at what roku does i think netflix is going to do $2 in ad revenue and their core subscription is doing $11. but it could be acreekive but modestly so. >> justin, there are a numberch other companies that are relying on direct to consumer and streaming to be a key part of their profitability into the future and i wonder whether this puts that to doubt it is hard not to given a 37.5 decline in netflix, it is stunning but perhaps deserved given how poor that quarter was. what are your thoughts broadly speaking for the rest of the industry >> i think there are two issues in play. one which you called out a lot of company just did the financial engineering game saying here is where netflix's multiple is, let's build a streaming business and get valuation credit for that and as

netflix has just shown, there is a ceiling toward the addressable market in a lot of regions and there is pricing power challenges in play that achieving that same growth rate could be challenging and thus you have to question what multiples you're paying for. other question that kind of come news play here is just how long is this investment cycle going to last. if the returns aren't there, and there could be yet another wave the market consolidation, perhaps some companies step back and reconsider whether they've run their own business or license. i think that is another 18-month to two-year question that has to play out there have been so many companies that have entered in the past year. would you be surprised to see anyone step back. >> the fact that meta, formerly known as facebook is down 5% today. they've raised questions about tiktok and other bread and butter streamers but other

places in general, people are consumering their content, is there read through to be had here to names like meta? >> well, you're raising a really interesting question we've seen phenomenal adoption of short form video. i made a quick point about it in my note. i sat next to someone on the the plane that watched tiktok the entire time. my guess is he would be watching some movies made or some netflix. so there is some question about whether short form video is starting to take away time from long form video and the other market read may be netflix just hit the maturity wall. maybe the same thing will happen to facebook or google or amazon. i don't think that is the case but that risk has become greater. and if those names, i think the company has furthest from maturity, but hitting that maturity wall is amazon. meta has a bunch of issues

i don't think maturity is one of them but we have to be respectful what we learned from netflix it will happen to all of the stocks at some point, the question is when >> as the decline gets into the neighborhood of 39%, 40% thank you very much. >> as we go to break, take a look at road map we're going to touch the highest level of the month with the dow. and a former streaming executive why she believe that's netflix needs to double down on the content spending to keep users. and it is 4/20 but cannabis investors are finding it tough to celebrate as the sector continues to underperform in the year we'll discuss that with tillray ceo. squawk on the street is back after this

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my goal is to have be a recession while i sit in this chair and i'm going to do all that i can to make that be true. right now i would say there is a lot of momentum in the economy, even so our gdp now forecasts for this quarter is around 2% and for the year we have the economy growing somewhere close to 3%. which is significantly above its long run potential there is momentum here and i think that momentum could carry us in a way that will allow us to avoid recessionary outcome. >> that is atlanta fed president rafael bostick on cnbc speaking about the chance of recession.

charlie evans is set to speak shortly as well. in the meantime joining us is northwestern mutual cio brent shooty and katarina samminetty i want to get your reactions to the comments and how it jives i guess with what you've been saying, your investment case where the markets right now are concerned? >> i think this is the overarching desire of the fed. they want to bring inflation down but not too much to cause a recession. and i get comments about this being a soft landing and i think that is the wrong question to ask me i think the question is which side is the fed going to err on. are they going to err on the side of causing a recession or getting it roll over but not crossing that line because the fed certainly does not want to cause a recession. don't think it is political palatable, or society palatable, so in the time between now and then, we'll eventually have a

recession, but between now and then, which could be a couple of years off in the future, i still think you want to own stocks an be in things that are cheaper and quite frankly how faster earnings growth are right now. >> and katarina, i pit the same question to you. how do you see it. >> agree with brent. this is certainly a very challenging environment for investors. and we have to look at everything from the inflation perspective that is effecting both the profit margins and the demand and of course fed has to be act ago gres-- acting aggressively d we have to look at ad valuations and the strategies that work for them over the last couple of years might no longer work so we have to break out a completely different playbook. now, what this means is that the pressure of higher rates are effecting bonds but also the fact that we're expecting the earnings revisions will require

us to pivot to defensive strategies to defensive positioning and in the sectors that we currently like are things like health care, staples, reits, utilities. so it is very important to look at everything from the youth perspective because we're no longer safe in the strategies that worked so well before >> so, brant, where would you be advising investors to be putting their money to work right now as well because if it is a bumpy landing and maybe we don't get a recession now but it could be a year or a years away, depending on how this plays out. there are so many uncertainties. here how are you advising clients >> i mentioned over and over that we want to be in things that which r cheaper like -- and meme stocks. but what you haven't seen harmed is value stocks. small cap stocks that are higher quality are doing well and quite

a bit cheaper. look, most people invest in an economic cycle and that is getting longer in the tooth. we're going to have a recession at some point but i think the valuation is so compelling that that is where you want to remain even though the calendar is moving toward quality enlarge, i think right now there is still so much opportunity given the valuation in those segments of the market. >> and katarina i won't ask you specific about netflix but we are seeing a blood bath for the stock after such a disappointing print last year. is this the type of thing that kind of raises the red flags for you as a potential canary in the coal mine and as we see inflation tick higher, is it certain areas in the market where it is more discretionary or where we start to see consumers pull back on spending and become more price sensitive? is there a real risk is that is

something playing out with one name here but we could see other areas pop up in the earnings season. >> that is exactly the case for breaking out a different playbook that technology plays the investment that worked so well before might not be the way to go into the future market this is going to be a bumpy ride we're fully expecting the earnings revisions and more pressures on this market and that this market is going to be negative but this is not to say that you cannot make money. you just have to be careful. and in the case for the profit-taking, for rebalancing of the portfolio, for trading into the volatility and for positioning the portfolio with this specific sectors that are going to do well going forward we can't be looking at past. the plays that did well might not be working as well as they did. and this is a perfect case with technology technology will always have a part in our investment portfolios, but not all is created eek well and some are

well positions in the market and others benefit so much from covid and as they benefited going forward as we're moving out of this covid environment into the very different market and that is inflation driven, that is the subjecting of consumers to higher prices and we need to think carefully what we spend money on. naturally we'll see we effect profit margins for a number of companies and volatility matters more than ever so we're pivoting to defensive and staying defensive and digging in to be properly positioned in this market. >> okay. thanks for join ing us today with the s&p holding on to modest gains, 4472 is the level there. david. >> as we head to break, take a look at shares of baker hughes not a good day after they did miss on both estimate and earnings and revenue, i should

say. contributing the disappointing results so what they call the volatile operating environment again the stock has benefited largely speaking from the uptick in energy and perhaps the hope that if this going to be a lot more development as well we have a lot more ahead stay with us

as consumers continue to deal with rising inflation, many are looking for ways to cut costs. our seema body has more on that this morning. >> a fascinating read from the all american survey compiled by our colleague steve liesman which shows inflation is starting to bite into entertainment and travel plans with 56% of respondents say they will travel less as prices continue to rise remember hotel rates are up about 42% compared to the same time a year ago. that is not stopping citigroup from naming airbnb saying that more flexible work environments are expanding the short-term rentals and longer trips and booking holdings with a $2,600 price target and shares are up 25% from the 52-week low

tomorrow we'll get the occupancy data at 10:00 a.m. to get an accurate gauge on whether bookings are starting to be impacted by inflationary concerns taking a step back the consumer discretionary etf is trading down. dragged down by netflix and disney both of which are top holdings morgan, back to you. >> thank you speaking of travel later today, do not miss the ceo of united airlines scott kirby as the company gets set to report after the ball that icongp "sts mi uonfa money" starting at 5:00 p.m. eastern. we'll be right back. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done.

i'm okay. i'm dan o'dowd and i approved this message. you are watching actual videos of the tesla full self driving technology as recorded by the drivers. from turning too tightly and hitting a pylon... [ expletive ] to swerving toward a pole. jesus. watch the bicyclist on the right almost get hit before the driver takes over. sometimes it seems the tesla

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than 5 million refugees have fled ukraine that is more than 10% of ukraine's population in less than two months. millions more have v been displaced within the country wikileaks founder is a step closer to being extradited to the u.s. to face spying charges. british judge formally approved the extradition orders it now go to the britain interior minister but he could seek an appeal to the u.k. supreme court and in new york and pennsylvania, more than 150,000 homes and businesses are still without power after a severe winter snowstorm this according to tracking site power outage.u.s parts of upstate new york has gotten more than a foot of heffy snow that brought down trees and road conditions treacherous. a much longer mud season. >> such a bummer when it doesn't

get warm in april. thanks you, bertha. >> speaking of bummers if you own netflix it might disturb through morning after reporting a subscriber loss for the first time in more than 10 years. stock has been down as many as 38.5%. our next guest said the company needs to double down on the content spend to keep users. with us now is heather music from hulo and youtube. now the ceo at musnick media what are you looking at here as sort of some of the keys given what does seem to be a rather historic day for streaming >> absolutely. good morning and thanks for having me. this is a a historic day especially nor netflix but they have been in precarious waters before so i have no doubt long-term they're going to find a way to pull out of this

challenging moment i think they underestimated the power of the competition, particularly in the u.s. so for me the major takeaway here is that the u.s. market has heated up over the last two years. and with the launch of all of the major media company and streaming services and netflix downplayed that in the beginning and now they're seeing that the heat has really been turned up and they're struggling to compete. they've lost more than a million more subs in terms of cancels in the u.s. than they normally do in a quarter ever in history so when you think about, you know, where they're headed in the u.s., they really need to up their game >> all right this is a company that spends $18 billion on content by far the most of any of these so-called streamers. what do you mean when you say up their game what are they supposed to do spend even more. >> well they need to make their content dollars work both harder and smarter. so it is really about

understanding their audience they've struggled to create enough hit content week after week to keep subscribers coming back when today with the major media companies there is a lot of great content coming out and even from other new services like apple tv, the quality of the content coming from the competition is growing over time and so netflix has traditionally taken a strategy of throwing a lot of different things against the wall and seeing what works and i think they need to double down on quality. >> but it is not just the domestic market, of course, the real growth opportunity is around the world and there does seem to be some question about that addressable market. because their pockets of growth that were expected to show up this quarter, didn't does this question sort of how many consumers are out there and available for what would still be the growth opportunity for netflix and its other competitors? >> i actually think that the market outside of the u.s. is still very much on tap

so i don't have as much concern about that growth. obviously when you start expanding into emerging marks like india, while the subscriber numbers will look impressive, the arpu, the average revenue per user is going to be lower. but there is still tremendous untapped opportunity in asia and other parts of the world so i'm still bullish on their international growth and netflix has been the gold standard in terms of the international expansion so i think they're well positioned to shine there. >> heather, this is morgan netflix in the last couple of years made some big-ticket and high-profile like the obamas and meghan markle and shonda rhimes. what plays out with the financial results with that strategy moving forward. are we at content pay peak at this point >> well it is hard to say. i don't think that that can exist when you have this kind of

competition in the market. so i don't think we've hit that peak but again i think they need to be really smart about how they develop their market and shonda rhimes, that paid off, the two better are bridgerton and inventing anna so they need to think about where they're putting their dollars and be a little bit -- and play this for the long haul and for quality. >> heather, how do you see the calculation of arpu, once you start bring in ad tier and mon he haddizing, how does that risk more churn down the road. >> i think an ad supported hybrid mod sell where they have to go. every other service has launched this i think this is going to really help with churn because instead of churning off of the service they could downgrade a user to a

less expensive tier to keep them on for longer. so i think they have to go in this direction i think their a couple of years to late to build out the infrastructure because that is no small task. the media companies have been at this since the beginning of time it is over 100 years that the major media companies have been selling ads. so there is -- and while others have caught up, so you have all of the things that have learned how to sell ads in the digital world and reinvented that game so there is room for them to catch up i think they still have a long way to go. >> and what about competitors. we're looking at paramount down over 11% and disney getting hit and warner brothers discovery, is the world a difficult place in general for direct to streaming? >> i still think this is a beginning of a roll out of direct to consumer streaming world. we haven't seen the full penetration of the media companies. disney has done the best job of this with disney plus around the

world. but there is still enormous growth, especially when you look at this as a global world. when you look at what google has done with youtube and what amazon has done with amazon prime. this is a -- there is a lot of room for growth and the u.s. obviously is the most competitive market but this is not the end of this. >> heather, i appreciate your time thank you. >> thank you. we'll check in with the ceo of till ray. and talking about the significance of the state and next hour, a lot more on the rough quarter for netflix and we'll look ahead to tesla tonight reporting after the bell we'll be right back. ayitusst wh

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welcome back cannabis users have high hopes for federal legalization with four reform bills sitting in congress right now. but why then are pot stocks still getting smoked frank holland joins us now from

the cannabis conference in miami with a special guest frank? >> hey there, morgan i have a special guest the ceo of the largest canadian company neil simon >> happy 4/20. >> it is a celebratory day for people in the cannabis business. we're surrounded by colleagues and ceo's and things line that but we do have to talk about the stocks they've been under pressure over the last year, your stock included, your stock down today as well. with just the trend of state level legalization and more people having access to cannabis than ever before about 248 million people in the u.s. alone why do the stocks continue to be for pressure >> so, frank, good question and you see how many people are here today. this conference was not around three, four years ago and you look at the interest that is here you look at the interest that is in the cannabis world. you look at how big the industry is it is $100 billion industry in the u.s. it is a $10 billion industry in

canada we're in our in fancy stages and without the safe bank acting, you don't get institutions within your shareholder base and i think what is important is this, there is a lot of confusion. i get asked every day, irwin, how come you can't own mso's or retail in new york now that it is legalized or new jersey, because we trade on the nasdaq, we trade on the toronto stock exchange so institutions are not only cannabis stocks right now. we over 400 million shares outstanding and a majority of our shareholders today are retail shareholders that are in and out. so i think the safe bank act passing is important and then ultimately shareholders understanding the benefits of cannabis and understanding the benefits of how they're going to make money listen, i see a huge industry here to really take off. >> well in all fairness, i think everybody sees the huge industry and you mention the banking act and there are four bills

considered by congress they have to pass both chambers and really unclear the one that passed the house, the more act looks to have no chance to pass in the senate but at some point we're going to see even greater state legal legalization and state legalization and why aren't investors seeing that potential and buying stocks now. >> i put out there last july a $4 billion of how to get tillray to $4 billion and that is based on canada and in the u.s. today we own record ridge distilleries which is a business and we own sweet water brewery which is a beer business. and in europe weal is within 20 country and europe will legalize over the next year or so we have a plan in place and ultimately we see legalization happening within the u.s we'll look other buy, merge or something and have a billion and a half dollars of sales within the u.s. so, again, listen, there is no

industry that hit the ground running, was profitable day one. what i want to build here is a consumer package, good company built around cannabis brands, built around brands and spirits and beers that are adjacent to the cannabis industry. >> i think people think it is nebulous and there is no clear pathway toward it. and you're listed on the major stock exchange and the nasdaq, why not take your stock which is a canadian company off of one of the exchanges and then buy one of the u.s. licenses and have access to the u.s. market? >> so, great question. i get that asked many times and a lot of times i get criticized. wheel trade, 25, 30 million shares a day with retail investors and today we could have institutional shareholders owning our stock if i trade on the canadians stock exchange, very little liquidity. and one thing that is important, is you build out this industry, you build out tillray i still

need to raise money to do acquisitions to pay down debt. in 2023 our fiscal year we'll be cash flow positive so with that, i want us to be a nasdaq company and a toronto stock exchange company where i could bring institutional shareholders in and i have a good float and i have to raise money to be able to afford my growth that i need in this company. >> irwin it is -- >> it is important to -- >> irwin, it is morgan i think i just cut you off there. you could tell how busy this conference is by the roar behind you guys in the background i just wanted to go back to policy for a minute. the fact that we have midterm elections late they are year we could see a change in composition in congress. clock seems to be ticking. a number of bills have been kicking around congress for a while. i guess, how important is it to see some of the legislation passed before you get to those elections come november? >> listen, i think it is real

important and schumer is supposed to introduce a bill in august i think it is a great question 90% of constituents want cannabis legalized in medical. over 60% want it legalized in adult use, okay. if you come back and look at three big states, new york, connecticut, new jersey, california, i mean come on and what is going to happen is politicians have to listen to their constituents, what they want the other big thing is, morgan, look at the tax dollars. in canada over the last three and a half years they contributed $18 billion in tax dollars, 150,000 jobs mult my that by 10 in the u.s. and the other big thing is the social injustice those people that are in jail today for cannabis infractions that happened many, many years ago. so, there is so much out here for the benefit of legalization, from a social and justice and from a tax standpoint to creating jobs that create entrepreneurs out there that our

politicians have to wake up and realize, we do have to pass something. >> social equity certainly a big part of cannabis reform or legalization in fact new jersey which is opening up adult sales tomorrow said that is one of their priorities looking ahead tomorrow, we're expecting to see long lines in the state of new jersey for the opening of adult sales an the usmco, the only companies to licensed to sell in their u.s. will continue to introduce customers to their brands. how do canadian companies compete if and when legalization happens and you can enter the u.s. market. >> again another good question and that is why, why don't you just go on the canadian stock exchange and start buying them up my whole thing is this here. there is still a lot of unknown out there. even though they passed the safe bank act, like the alcohol industry, it is the one tier, two tier, three tier system. i'm hoping that free trade happens. i have over three square meters of growth space that i could export into the u.s.

so that is number one. number two, we are an expert today in growing cannabis. we are an expert in processing products and an expert around the world. so with this, it gives us an opportunity to do an acquisition. but a big part of my $4 billion strategy is, now only breckenridge and sweet water brewery, if cannabis legalized, there is no we we could infuse with thc and have alcohol out there. and we own a piece of med men on the notes. upon legalization we could convert them and buy the whole thing or openly open a big majority. >> we'll have to leave it there. happy 4/20 day thanks for joining us. morgan back over to you. >> and thanks to you frank holland. let's get a check on the markets where it is a mixed picture as the nasdaq is down about half a percent, being led lower by netflix, on the flip side for the dow, we're up 311 points

it is the best day of the month for the dow with the ibm leading the charge with those gains. the s&p 4478, also up about .3%. we'll be right back. ♪ ♪

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a key focus for so many investors, but two key names in the overall group have taken a beating in the past six months kate >> these have taken a big takedown down about 70% over the last six months the story line is that they are ramping up production, but that has been costly. production is about half capacity in march. supply is tightest for the u.s.

business they say oatly has supply for starbucks. and 2022 is the year for partnerships with pepsi and brands like mcdonald's and they have expanded their chicken nuggets. but it was said a few weeks back that the product was underperforming, the mcplant and a national rollout was not likely in the near future. ceo ethan brown pointed to intensified competition with many new entrants. and the good food institute says there are more than 1,000 plant-based food and drink brands in the u.s. back to you. >> that's a lot of brands. thank you. >> let's get over to dom now

>> we will talk about staples here stocks mixed generally at this hour we are tracking performance which does include some food processors some of the other leaders are in the food staples like mccormick and jm smuckers and kraft as well target price was cut to $350 but food staples, cosmetics, one of the better performing sectors. during april we are celebrating financial literacy month. here is karen on how financial literacy is a great equalizer.

>> i think financial literacy is important for this country it allows people to be independent, gives people a playing field because they understand how to deal with their money, the importance of saving, income, cash flow and debt if you don't have that, you create a class of people that do understand and those that do not. that is not what democracies are about. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional.

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speeches being given this morning. charles evans. steve tells us what to expect and what he has heard. >> the bulk of the fed talk over the past several days has been much different they want to get to a neutral rate of around 2.25 this year. some question how fast they get there and the debate about what comes next and next.

charlie evans sees nine quarter point hikes. he says the fed probably will have to adopt a restrictive policy which means over and above the mutual rate. that said he had a bit of an upbeat look at inflation next year saying if several factors plateau soon it could come down to the feds 2% target next year. and they said slowing global growth shows the fed does not need to rush beyond neutral. and last night -- so we are listening at 11:25 to mary daily and at 2:00 p.m. what the fed

seeks for inflation in the economy. >> you are keeping track of all of it for us a final check on netflix, falling below $100 million that's going to do it for us "tech check" starts now. >> welcome let's start with what else, netflix. shares are crushed this morning, on track for their worst loss in about a decade the core business model is called into question subscribers are leaving with increased competition. and it's dragging down the entire media