appreciate it. >>> netflix, we should tell you, look at the after-hours netflix price, $390.ike it is going toward the $400 mark. this a huge pop, unlike anything we've seen after earnings before for netflix, even though nicole petallides it has risen in the past after earnings but not like this. >> unbelievable for netflix. this is breaking news after-hours where we're seeing netflix jumping more than 12% in the after-hours. david: 20%. >> 20%? david: close to 20% right now. >> unbelievable. they came out with their subscriber growth here. they added 2.33 million customers. that is is ahead of the estimates. they're seeing total of 34.3 million paying domestic customers. obviously they signed on for new exclusive contracts from everybody from disney to sony. they competed against amazon. they won awards for original programing, netflix is number one performer in the s&p 500 last year. over 5weeks it is a stellar performer, up over 230%. tomorrow will be a very, very busy day. at these levels, these will be all-time highs obviously for netflix tomorrow. david: okay. by the wa

we're talking about netflix here. one of you take netflix. and i'll do ebay. >> netflix, about a 10% projection now. this is better than double that. and i think dan's the one that said that earlier because it's true. the combination of the 10% move was projected by that. it's wildly exceeding that. the new domestic subscriber adds, that was a big number. and i think the moat just keeps getting bigger. who out there can possibly compete with these guys? the only one that we could come up with is amazon. i don't think any cable company can compete. not any liberty, time warner, charter, comcast, even. can't compete with netflix because the buy-in is too large. nobody else has enough chips to go against hastings except for jeff bezos. >> a competitor can own a piece of the pie. and it doesn't mean that netflix's position will be degraded. there may be room for both at this point. >> you mentioned bezos. they have a distribution. and they have the deep pockets. one point about the setup. i was talking about another stock here earlier. but the st

you had the court decision on net neutrality which essentially ruled against netflix because now netflixced, if this ruling stands to the supreme court, netflix will have to pay more for all the stuff it pushes through at&t and verizon and all the other pipelines. so costs are going to be higher and there will be more competitors, right? >> no, we do agree there are definitely some headwinds here. clearly netflix add ad decent number of subs in 2013, five million u.s. streaming subs. we think competition obviously amazon after the close, speculation it may lawn of a pay tv service which is 70% of netflix's viewing. we think negative impact from net neutrality. we'll not say it has large impact. david: hold on. let me push back. they will either have to pay more for all the stuff and sometimes 35% of all the stuff that goes through internet pipelines belongs to netflix. either they will have to cut down how much they put through those pipelines or they will have to pay for it. that means less profit, right? hold on. go ahead, aaron. >> yeah, unclear if it is netflix paying more or consume

movies will go off-line on netflix.atch new year, you can blue jasmine on january 20 and captain phillips on january 20. these are oscar contending movies. the changes everything. >> it is a mess. it is a mess. i don't want to be a theater owner. it is a mess. >> you are at the nexus of inspiration with all of this content. with the success of house of cards or downton abbey or game of thrones, are the guys that make this crowd -- are they enthused going into next year? >> i think so. i think there is a multitude of options out there. there was a cast member on saturday night live -- they have a whole body of work on youtube already. you are not coming out of it starting from ground zero. you have this body of work. there are places you can now put creative content. >> attention all binge fewer's -- it is the new year. you have to watch the same workout that the prime minister gets. there is the trainer. we will show you how he does it. the new business of taking you from a to b. the car showdown. getting around during

movies will go off-line on netflix. in the new year, you can watch "blue jasmine" on january 20 and "captain phillips" on january 20. these are oscar contending movies. it changes everything. >> it is a mess. it is a mess. i don't want to be a theater owner. it is a mess. >> you are at the nexus of inspiration with all of this content. with the success of "house of cards" or "downton abbey" or "game of thrones," are the guys that make this crowd -- are they enthused going into next year? >> i think so. i think there is a multitude of options out there. there was a cast member on "saturday night live" -- they have a whole body of work on youtube already. you are not coming out of it starting from ground zero. you have this body of work. there are places you can now put creative content. >> attention all binge viewers it is the new year. you have to watch the same workout that the prime minister gets. there is the trainer. we will show you how he does it. the new business of taking you from a to b. the car showdown. getti

films being on netflix?ditional platform has been for 30 years, distribution on pbs that reaches the largest number of eyeballs. every kid in america when i was growing up had memorized the entire primetime schedule. now we know we've got hundreds of choices. we can't possibly summarize and have a point on tv. i'm thrilled with the access, i'm thrilled with the idea that if i'm flying across the country and want to watch three or four episodes of "house of cards" i can do that. we have yielded to the fact that the consumer is king. it's not the almighty network ties says you shall watch it now. this is liberating for everyone. we have been convinced, sort of, that works. everything is in flux. there's not really the model that sends us into the future with a real confidence the way we used to. now we are in a new area in whthe middlemen read the lion's share. there are too many middlemen think too much stuff on the cheap. netflix is going to make a deal with pbs and we get a large share of that because we ar

the point is if i'm not a netflix customers why should i pay for to you see netflix. >> i look forward to the day that these companies will be offering rebates for when you don't hit your data cap, that hasn't happened yet. here's the problem, we're paying our $50, $60, $70 a month to access the internet. i pay verizon because i want to use netflix, youtube and log on to al jazeera, whatever i decide to do. it's not up to them what i do with that bandwidth because i'm paying them for the service. i don't think they should have a say. i don't think they should dictate what they're telling the investors, the court and everybody but the applications is that--the politicians is that's what they want to do. they want discriminate and get paid again. >> isn't this falling on the companies, the entity pumping content on the web rather than you at home trying to consume it. >> ray. >> they're paying to get that content to the web. they pay to the points where it links up to the providers. it doesn't make sense that there should be an extra charge. and guess who will pay that extra charge ultim

does netflix even care about the loss?hey have had success with their own "house of cards" and their original series. netflix went from second-worst performer back in 2011 to the top performer last year in the s&p 500. with all the revenue and the content, can you call netflix a fourth network? >> i think so. they have mashed themselves into the living room in a way that other people have not. it is a very interesting model. i think people are talking about netflix. people are getting rid of apple tv just so they can upgrade to apple tv so that they can get apple tv, netflix. >> with all the success, netflix is starting to do something. remember when it spun off its dvd business and changed its pricing model? netflix is testing a new subscription model based on the number of people who can use the account. customers will pay more for additional family members. >> they have got a find a way to make sure they generate enough revenue from each of their users. there is a difference between the number of subscribers and the num

netflix has direct access, apple has direct access. to your credit card, amazon has direct access, that personal information becomes very valuable. particularly valuable to an advertiser one day and he will want to sell it. >> can they give it? >> can they give it? and that is a question that is going to be there. but if you have addressable advertising and you are watching let's say on your ipad, you know, and you are watching manager and you click and you buy manager and you now are in touch with that advertising, that advertiser has a direct link to you and at one point that advertiser is going to know that you are an owner of a mercedes or a chevy or whatever kind of car you are and they will be able to target their ads to you. >> rose: or a ford pickup. >> with el that is you. >> rose: it didn't do well. for the graduate -- so what is this going to do for people who do what i do? they provide content? i mean is this all good for me? >> yes and no. >> rose: or should i -- >> you are going to be okay, you will live long enough to se

netflix is distributing the shows. netflix is acting more and more like a cable channel.all number of people will say i only need netflix. it is additive. >> you have $80 for the cable box. >> who will choose $90 over $8 in the long run? >> the whole country is choosing both. >> not in the long run. >> the vast majority of people are addicted to cable television. that is good for cnn. i'm glad netflix is adding more options. what is remarkable of the quarterly earnings, this is a quarter with no big shows. they introduced a kids show in the last quarter. >> my big surprise is the dvd by mail service is still growing. people keep the technology they adopt and comfortable with. >> you know why? so many with the zombie accounts. it doesn't cost to send dvds to nobody. it happens with a lot of companies. people sign up for a gym in january. after that, it turns into a zombie account. >> here is my question. what happens next for netflix? people said it would be a study of how to lose your business. >> how much bigger can it get? it is at 33 million in the u.s. 44 million cust

will i not get as good of a quality service from something other than netflix or maybe netflix pays andmazon doesn't and, you know, i think that's where the real concern is. >> well, rosalind leighton, you heard those possibility at this. what are the interests of the big decision? they wanted this outcome. they got it. what are they going to be able to do? >> what i think is interesting is net neutrality is a conservative argument. it says the internet is this way. we want to make a law so it will always stay this way. we don't want it to evolve and change. the fact of the matter is that invasion, technology is about change and so, for example, if we look at the internet of the dial-up days, would we have wanted to have that same internet today? we have had as congress woman eschew said, we have had a $1.2 trillion investment the hot bed of innovation. so, i think that talking a lot about some of these negatives but let's look at some of the real positives. >> what i am trying to get you to do. >> if you have something like at&t and the iphon, in 2011 these parties said we will launch

some say it is netflix versus the cable industry.ausetalks about hbo hbo continue to do what netflix is doing now, this idea of getting it loose of content. amazon and hulu will continue to be a part of the conversation in terms of the new media players to watch. they are spending so much to build their business around the world, you have to think about competing services in other markets. now tv in the u.k.. that is where there could be some more competitive battles in 2014. >> thank you. so what do people behind the cameras think of the netflix strategy? filmmaker ken burns says he loves the access to the content it provides, but is he happy about his films being on netflix? take a listen. ♪ my traditional platform has been, for 30 years, distribution on pbs, which reaches the largest number of eyeballs. every kid in america when i grew up had memorized the primetime schedule. now we have hundreds of choices. we cannot possibly memorize and have appointment tv. i am thrilled with the access, thrilled with the idea that i can fly ac

how might that affect a company like netflix?und something called net neutrality. netflix is going to continue to fight that. they talk about that in their shareholder letter today. i think the more important shareholder story is what admin was just talking about, the fact that netflix it self is testing different pricing tiers. obviously netflix has a lot of members. at there is the concern around the number of users. is that people might share an account. they have been testing different racing tears to potentially generate more -- tested toferent pricing tiers potentially generate more revenue. that's probably one of the reasons why netflix shares are red hot in after-hours. withn, just staying trish's point, and that is if more people stream on mobile, that gets expensive. what if netflix has to start $8.99 a month, $9 .99 a month? cable.till cheaper than >> exactly. >> the key metric in subscriber growth. when people get worried about the stock is up 18% now, in the letter they say next year we will invest in content in a ma

. >> will netflix, the best performing s&p stock of 2013 blow past estimates when it reports tomorrow. we'll tell you what to expect right after this. >>? of the biggest names in oil exploration and oil services are seeing higher profits these days thanks to strong performances outside the u.s. energy boom. morgan brennan has more on what's energizing profits. >> reporter: don't credit the energy boom sweeping the u.s. for helping out halliburton and baker hughes. instead, look overseas, analysts say they have been expanding their international operations in search of bigger profits. >> that's where a lot of the growth is, historically seeing strong growth from emerging markets and also where a lot of resource is. it's a case of follow the oil, follow the money, follow the growth. >> markets like the middle east, ai asia pacific and europe have fueled growth. baker hughes, the world's third largest servicer saw a 27% increase in revenue growth. the other big growth areas, europe, africa and russia. saw revenue increase 18% from its middle east and asia operations as well and halliburt

but the point is if i'm not a netflix customer why should i have to pay for you to see netflix. >> here's the problem, we're paying our $50 $60, 70 dollars ,$80 a month to have the internet. i want to be able to watch netflix or watch al jazeera or whatever i decide to do. it's not up to them what i do with the band width because i already pay for the internet. but what they're telling their investors, the court and pretty much everybody but the politicians is they want to discriminate and get paid again. >> but the entities that are pumping content up on the web rather than you who is trying to consume it. >> they're paying to get that content to the web. they pay for all the points that it links u up to the providers. it doesn't seem to me that there is an extra charge they have to pay. and guess who is going to pay it ultimately is me. if netflix' cost goes up 25% that will show up in my wallet. these companies instead of investing in their networks, they're profiting from the scarcity. they're proposing these special deals that it won't count against my cap or whatever have you where

netflix's stock yesterday was up even though there was this news., you had the buffering, it looks like some of the reality is actually catching up. >> john, who do you think apart from netflix loses out of all this and who wins? >> the biggest losers are startups. netflix may need to pay more money to internet service providers to ensure they have the best possible service, but the next netflix won't have the kind of cash it needs to pay those same fees. if you are an investor and looking at new startups and they're competing with major incumbents that have the partnerships with internet service providers, you will probably disregard them or think less of their potential because they need incredible -- they would need incredible amounts of money to rival -- >> you disagree, john? >> i don't know. i don't think we exactly know what's going to happen in the open market with net neutrality struck down. just supposing there were no appeals and it was officially struck down today, would the comcast, time warner, charters of the world block netflix traff

that netflix can offer.ou might be surprised, john. why are you standing here at netflix getting the best picture? this is the ultimate irony. it will not be a shift in blu- ray or hd that will get you that quality. it will be better quality than that in the first place you will be able to see it is on netflix on your tv streaming over the internet. >> all right, i will give you a chance to prove it to us. why if someone is watching will the experience look and feel different? >> second stream altar hd 4k to give you an idea of what it looks like. house of cards is one of the first pieces of content we have in this format. season two premieres on february 14. it will signify on the screen where it says ultra hd four k. it is four times the information. you are practically in washington, d.c. if you look at the columns that it is built out of, and all of the glorious architecture of the capitol building, you will be able to see the architecture. >> would've people do not go out and buy one of these fancy tvs?

netflix is -- up close to 300%.hat has to do with subscriber growth, the number that drives the revenue story continues to climb. as you look to 2014, the moves they are working on are tied to continuing to grow that this -- that subscriber number, whether it's toying with the price of the subscription or this idea of purging some titles where the licenses are expiring. >> let's talk about this purging of some titles. some of the press over the last couple days about this is your last chance to watch "titanic" or cory johnson's favorite movie, "top gun." >> i think it's one of the worst movies ever made. >> you know -- >> i've never seen it. i'm embarrassed, but it's true. the netflix strategy is to find all the new stuff. they cut these deals for new tv shows through marvel or dreamworks animation. they want to be the place where you see the movies in theaters in second windows. they're spending a lot of dough on stuff that's going to be exclusive and new as opposed to stuff you've seen the billion times or maybe i

we have netflix and ebay due out in be aab an hour from now. instant reaction from the market coming up on "the closing bell." >> also what is the single biggest mistakes investors make? one of the most successful money managers in a generation tells cnbc exclusively what that mistake is. >> and forget i-robot. instead, think i unemployed. let's not think that. we will have a special report on the ro gres in robotics that has come so far in the past generation. what was the statistic we were reading? in the next what decade was it? robots so replace 70% of the businesses that exist in this world right now. that's incredible. >> it is, but it's hard to actually think about that being the case. it's an interesting thought, but at the same time you can think about the way robots are augmenting and maybe opening up whole new fields of employment even. >> exactly. but what does that do to the humans? what does it do to productivity? we will take a closer look at that question with the man who wrote the article for "the new yorker" coming up. >>> in

including netflix and ebay. netflix again, the performance on this is just astonishing. >> it really is. and they are the number one performer in the s&p 500. this has really surpassed any estimate that anyone had. the stock is up $4. of 33277. international expansion as they have been ramping up in canada and the uk and latin america and the like. and also as we are waiting on the outlook and the gardens guidance as well. a number one performer over the last 52 weeks. up to 236%. then we will keep an eye on ebay. so now we know that they have numbers that have been growing. it we will keep an eye on the same store sales. that will be key. in this stock is up aboutt1.5%. and paypal revenue will be up 21% year-over-year. the last few months have been a little bit better for ebay. cheryl: both of those numbers are going to be in. that is here in new york. >> i think that confidence in the recovery is better. so if you think about a year ago or two years ago in the united states, the economy felt ike it was moving

netflix diehards are watching a lot but not that amount. technology, companies concerned about going to hd and ultra hd and also worried about compression technology. not eating up bandwidth. they are thinking about that in the same way. maybe it allows it to come to you without getting to this stop in the road where everybody is wondering if prices will change. >> might this lead to possibly if it rolls out, sponsored access, wireless and data access from larger media companies which could give them an advantage where a smaller one will eat up your data? >> i think this opens the door for a lot of people to put their brand or message on the desk and positioned themselves in that way. i think if you go to the example of amazon web services which has been the great place for people trying to take advantage of the stuff available to them, so -- absolutely, something to watch for. >> sam grobart and jon erlichman. we are weeks away from a meeting of the minds. tim cook will be sitting down with a samsung executive and we would tell you all of

this pricing change totally plays into the idea of netflix.m sure bezos has netflix and his sites, for sure. >> what do you think of that idea? the think that is exactly direction they are going. you are going to see some unbundling of services. amazon has traditionally gone after their top competitor will stop the bull's-eye is now on netflix. the shots are going to start to come. >> thank you both. ♪ >> we focus on technology and the future of business. disney and dish network are close to a deal to settle litigation over dish's ad skipping technology. the deal could include compensation to disney for subscribers who skip commercials. disney is also involved in legal fights with cbs and fox. sold out to new york city ahead olive picks. they are working overtime to add capacity. has evenme court agreed to hear the case. twitter is buying 900 patents from ibm. terms were not disclosed. patent dispute, ibm warned of possible infringement of at least three patents. and 95head nine patents pending patents when it went public in november, a low nu

cheryl: we're also looking at shares of netflix.company's blockbuster earnings report. the world's largest video-streaming company adding more than 2.3 million u.s. customers in the fourth quarter and more than 1.7 million overseas. but could regulations and increasing competition set netflix back? joining me now are two analysts who are not totally sold on netflix, michael packer, web bush securities managing direct or, and mike olson, piper jaffray managing director and senior research analyst. michael, i know you're a long-term bull on the company, but your not completely -- you're not completely sold. and i'm curious why especially when you see subscriber growth that we saw in the quarter. >> yeah, i'd say i'm a long-term bear. look, i've been wrong on subscriber growth for a couple of years. i thought they were approaching a peak. clearly more and more connected devices have driven subscriptions. clearly an improving economy means people going back to work, and netflix is a very inexpensive way to access content. so i actually

could be in ggers like ho netflix could be in trouble.t does this mean for netflix? >> you have seen the stock market reaction. netflix shares are down a little bit. is the all-you-can-eat, seven dollars 99 ends, going away? not just yet. cards"e loves "house of and "orange is the new black" but the numbers from methods and others would suggest that spending an hour a netflix every day, even though it eats up a lot of broadband, is nowhere -- nowhere near the amount of total television that people are watching. it is something that everybody in the industry is thinking about. >> i'm curious to know, there has been a lot of talk about this. what would this do for competition? generally speaking, the internet has been open. now we are going into a tiered model. what does that mean in terms of established internet companies and startups? -- if you a great think about the lobbying power of all of the internet giant in terms of getting their way, that is a whole other story tied to this. if you think about the companies that have come and been

what happened with the -- netflix today? >> they are testing that. netflix had a big quarter. the stock rallied after hours when they came out with better than expected results. when you talk about netflix, in this way, here is a great laugh form, but wouldn't it be better if someone just look at this? it's costly for them to do this will out. wouldn't it be better to do that with a larger media company? netflix has shown the ability to continue to grow. now they are talking about having 40 million subscribers in the first quarter, which would be more than 30% growth over a one-year stretch. that's big gross for a company that is big and growing. -- that's big growth for a company that is big and growing. >> for the world we are living in right now, the world of the active investor, this positive spin we are seeing, and active is sort of a good thing. carl will tell you all about this. this is an opportunity to represent the smaller shareholder and give them a voice. we have really seen this rise. it may be in part because the activists are working with the big pension funds t

hbo keeps making hits. >> it's been aid said that netflix became hbo faster than hbo could become netflixew days ago he doesn't mind when users share passwords. >> so i guess butler's, the ceo of hbo doesn't mind me then sharg his account information. so it's butler@hbo.com and his password is netflix. >> kara? >> whatever. >> fighting words or is there something underneath that? >> you know, he's always been fighting with the time warner people. it's just funny. he likes to pop off with stuff like that. that's an issue for everybody. people want to use the services they are sharing passwords. it is a challenge to hbo's business. it's no question. same thing for him. lots of people share netflix passwords. >> he made that comment at our buzzfeed, rich greenfield was at. what's interesting is hbo has the innovator's dilemma. what he said to our peter is he i'm talted bill clinton and said, it's just arithmetic, meaning he's got a way, the fees from the carriers versus going over the top. netflix doesn't have to worry about the legacy revenue lines. they've got a lot more freedom to just in

is there something that is being consumed by the traffic of netflix and instagram? >> netflix says they are responsible for 30%-40% of the traffic in the evening in the u.s. it's an astounding number. >> that's amazing. at the problem with net neutrality goes away. -- that is a problem. verizon can charge if one customer of the millions is using 30% of your bandwidth, maybe you can charge them more and that could be a problem for the profitability of netflix, their growth, and the cost to subscribers. >> can't you tell that cory johnson does not like an all you can eat buffet/ netflix like the all you can eat buffet. >> that is the misnomer about net neutrality. do some companies get preferential treatment? you have google and netflix running their own global networks and they're plugging directly into comcast, cablevision. they have already established their own fast lanes. they avoid the public internet for all but the last mile to your house. that is something that has evolved pretty quietly over the last five to seven years i would say. it has fundamentally chan

the numbers from netflix and others project that spending one hour a netflix everyday, even though thatats up a lot of broadband, is nowhere near the amount of total television that people are watching. i think it is still early days for something like this. it is something that everybody in the industry is thinking about. talk abouts been this among policy groups and advocacy groups about what this may do for competition. generally speaking, the internet has been flat and open and if we go into a metered model, what does that mean as far as established internet company's and startups? -- theink this is lobbying power of all the internet giants in terms of getting their way, that's a whole mother story. when you think about the companies that have been able to set up shop quickly through something like amazon web services, if all of a sudden, what they have to pay changes, maybe that start up does not exist at all. big is a bad thing for a player like amazon because maybe they don't get the business through their amazon web service. if you think about cable versus the internet, you hear

if you think about 2013, a very important year for netflix.brand a lot more focused did in the sense that netflix was viewed as the tv and movie buff -- at a certain price point. , a legitimateut must the tv spot. they rolled out new shows and they continue to cut deals where they will be the exclusive home to certain movies after they have been in theaters. that is why they cut a big deal with is me. they've got important art is like the weinstein company. you take that and you couple it with changing the pricing laws where they have multiple price points depending how many are using it in the home, and you are talking about a shift in business lately and a trend that will continue in 2014. which is costly. numbersook at the netflix talked about in terms of where it will be spending money this year, $3 billion going toward all of the content they are making available. another half billion dollars on the marketing campaign of what netflix is. and a lot of it obviously introducing the brand overseas. of usen, of course, ease is so important so

i asked what it could mean for netflix.mmediately, the stock market reaction with the shares down. do they have to change the pricing model? the all you can eat, does it go away. is, not justwer yet. first of all, everybody loves to talk about house of cards and orange is the new black, people using netflix in a big way. thatumbers would suggest spending one hour on netflix every day even though it eases up broadband is not near the total television that people are watching. it is the early days for this. it is something that everybody in the industry is thinking about for sure. >> i am curious. advocacytalk among groups what in my to do for competition. generally speaking, the internet has been flat and open and will going to eight tiered model. -- go into a tiered model. what does it mean? >> if you think about the lobbying power, all of the internet giants getting their way, that's a whole different story. if you think about the companies that have been able to set up shop very quickly through amazon web services, if the

then, netflix can say your isp is a bad guy. the netflix doesn't want to pay for your usage, take it up with them. i think the ultimate conclusion is netflix has to raise price. i long said content costs will go up. now, it's content costs and pipeline costs will go up. they have to pass that through. that's going to slow their growth and cut into their profits. >> michael, great to see you. thanks for your time. michael pachter of web bush. >> this is reforcement of why you want to deliver the pipe. the guys that are controlling your access points and how much you have to pay to get this at home. >> communications. >> charter communications. and it brings everything we've been talking about in the last few days with the mna activity. why there's a scramble to gain control in the space. time warner cable seems very much alive. when you consider that deal. >> this is not a done deal. >> oh, yeah. and michael makes clear, we don't exactly know how it's going to pan out or when it will pan out. >> and sneaky suspicion that you're g

if you like your netflix plan, you can keep your netflix plan, period. sound familiar? netflix spokesperson said there really is no need for customers to get antsy about some pricing packages being rolled out this year, several new plans are being tested by the streaming service to try and attract new subscribers. one of them would let you pay $6.99 a month to watch just one video stream with lower quality video. another plan for $9.99 would let you stream three videos at once on different devices, but the company says these new plans are only being tested, they may never be available to everyone which should mean the old plans are here to stay. right? hm. joining me now live from new york is the assistant managing editor of fortune magazine, lee gallagher. great to see you. happy new year. netflix coming off a monster year, stocks reaching record highs, original programming such as house of cards going over huge with viewers. why change what seems to be working? >> well, a couple different reasons. as you said, this is just a test, this is only a test. but you know, fo

talking about netflix this morning. also, the weather. it has stopped snowing in new york. >> finally. >> schools are closed in philadelphia and d.c., students of new york are going to school even though wind chills are like -10 degrees. >> that is affecting the markets locally. need, up to get what you natural gas prices in new york 20 pert a record $1 british thermal unit, seven times. >> we are paying up. you have a data check. >> right now we are lower across the board for equities, the s&p futures down by three at the moment. not a whole lot of movement. the 10 year note yield, said of -- we have settled into the range, 184. crude oil reacting to the weather, up $.42 on the day, that spreads through the energy complex, natural gas. we mentioned the new york city spot price. up to a two your high. in boston, don't look. heating oil futures, paying a lot more than those who use natural gas. the tom keene watch, swiss franc a little weaker again today. tom's time at the pn a bar gets a little cheaper. $1,239.tures, the website of bloomb

if we can trade both of these stocks now, ebay, netflix. take netflix first. what's the play here? >> on which one? >> netflix. >> i think if you're long the stock, yesterday you certainly got no reason to change that posture. >> if you're not long yet, is it too late to get long? >> i can't buy a stock that's trading at 200 something times last year's earnings. i really don't know what this current year's earnings will be. if you're a trader, just use the moving averages as your risk gauge if that's what you want to do. >> would you buy in amazon? >> no, for the same reason. >> okay. i was testing you there because you make the same argument. >> that's the point you talking to fundamental analysts about their price targets. it's hilarious in a way because they're absolutely is no way that you can take a traditional discounted cash flow analysis model and apply a reasonable multiple to the way these stocks trade. they trade much more on sentiment and emotion than do more mature tech companies at a certain point these companies will be subsumed by their fundamentals and will start t

like verizon or at&t, to let netflix clog up their internet lines unless netflix pays more money.he fcc doesn't like the ruling there is at least one former fcc commissioner who does like it and he joins us now. robert mcdowel, was appointed to the fcc by president gw bush and by president obama and both appointments were confirmed unanimously by the u.s. senate. so this guy plays it down the line. commissioner mcdowel, good to see you. you had a very interesting piece in the "wall street journal" let me premise your piece with a basic assumption. i think it fairs to say, you correct me if i'm wrong, that the internet is this magnificent platform that supports all kinds of businesses in a very innovative way, primarily because it is not regulated. is that true? >> absolutely. the internet is the greatest deregulatory success story of all time. it blossomed beautifully before there were net neutrality rules. it will bless many even more beautifully after this court ruling and unfettered internet is the best way to go and this is dynamic and wonderful. david: forgive me for interrup

for instance netflix accounts for 2/3. should internet providers be able to provide for that? or should internet providers keep the nose out of their data. larry downs is a professor for law, research fellow and author. he testified on the question of net neutrality. does the fcc have the authority to be regulating the internet and then the second issue is should the internet be regulated? let's start with whichever one. >> the first one is easy. the court said congress is not given the authority to regulate the internet. without the fcc it is done quite well. the court did say they had some authority, far less than what they tried to execute. >> and then there was paperwork issues. if you change your definitions about certain things it doesn't prohibit the fcc from coming back and trying to re-regulate. >> it can't be as extensive as they were in the initial set of rules. >> there is a point where people understand net neutrality to be something they think they are for but maybe don't understand. let's get to the second part of that. should the government be regulating the in

who will win, netflix versus youtube versus amazon?ile it sounds easy and rolls off the tongue, netflix comes out with something like "house of cards" which is awesome and i cannot wait to see the next thing, i read subscribed to netflix after being pissed off at what reed ago,ngs did a couple years we learned, if you get one good show, and we saw this on amc with "madmen" you get another and another and make a network deck -- a network. has become a must-have, along with amazon looking to do its originals and it changes everything. >> hold that thought and we are back with more in just a minute. in the meantime, it is 26 minutes past the hour. that means it is time for "on the markets. a quick snap chat -- snapshot. more on the markets in 30 minutes. ♪ >> we focus on innovative alternative investments. here are your bloomberg top headlines at this hour. chrysler will now be fully owned by the italian carmaker. the ceo of both chrysler and fiat agreed to buy the remaining stake in chrysler from the autoworkers health care trust. it wil

, netflix subscriber growth impressive, cash growth is not.etflix share price is a house of cards and the cash flow argument is a begun. they only generated $5 million in cash flow in the third quarter with 30 million subscribers. neg niv 2013 and going forward in 2014, only projected to generate $200 million in free cash flow. that gives the stock a price to cash flow valuation of over 100 times. ridiculous. also, forward earnings. priced to earnings is over 80 times. so the valuations aren't reasonable until you get out to 2017, 2018 estimates. you don't sale stock just because it's pricey. there's other things to be concerned about. net neutrality. naive to think the company doesn't suffer costs from having to pay more for bandwidth or having to pass that on to the consumer, and we know that the consumer is very sensitive to share price, and i also didn't like the conference call last night. reid hastings crack about the password of hbo's ceo is, just smacks of arrogance to me and arrogant ceos typically do not make money for their sharehol

i'm still recommending people own netflix. why? because i like to do market cap analysis and that's what drew me to netflix in the first place. when it was trading much lower, it was a tremendous number to satisfy users that attracted me. by the way, of which i count myself a member. my kids taught me about netflix before the 300% gain and showed me how to stream video over my wi-fi so i never had to mail in a disk again. we're not alone in loving netflix, more than 31 million americans use it along with 9 million abroad. when the stock was lower, i urged apple, microsoft, yahoo, or facebook to buy it. using some of their cash for growth as netflix represented a real chip in a new tech game that's working, the holy trinity of mobile, social and cloud that identify in "get rich carefully" as the most important multi-year trend out there. you know what? there is a simple dirty truth about netflix, i'm afraid to say it on air. it's true. we hate to admit it out loud, but we would be willing to pay more for the service! and that's how

so did netflix.hey are trying to make it a better service because they are competing in a lot of ways with traditional television. if you can make it an easier, more accessible kind of service, maybe you will find a new subscriber for eight bucks a month. >> i want to talk about the original content in a moment, but if they are going to expand in europe and invest heavily in europe and the rest of the world, that will be incredibly expensive. >> yeah. they have taken out some debt to feel that expansion, and they were not specific on which markets they are going to get into in europe, but you are right -- that has always been the knock against netflix, how much they are spending. whether it is to expand internationally, whether it is on content, whether the issue of net neutrality will cost them more since they have benefited greatly by being able to just, you know, fill your broadband with all sorts of shows. cost is always a factor with netflix, but i think most people have turned a blind eye to it