>> netflix says it is.ast quarter we had a similar situation where they exceeded expectations overseas but underperformed in the united states. this time they missed a little bit in the u.s., but i think the number that has investors excited is the forecast for the next quarter showing international growth will keep ticking up. the ceo said to expect considerable growth outside of the u.s. for the foreseeable future. some will adopt netflix quickly, places like singapore should swarm the service. others will be a slower go but they have a lot of room to grow. there are some hiccups they have not encountered in other places so far and international growth should be steady. emily: reed hastings talking about their progress. listen to what he had to say just moments ago. >> it will be a record for netflix and we are super excited about that. what is amazing is we are seeing new shows like making of murder at only huge here in the u.s. but emerging as a big hit around the world for us. emily: still netflix is s

netflix saying people around the world are continuing to spend more time streaming netflix. in 2015 streaming 42.5 billion hours up from just 29 billion hours in 2014. clearly looking to address the issue of competition and where people are spending their time there. back over to you. >> we will have more on netflix coming up just in a moment here after the break. tim, before we let you go a final parting thought here. you're right, it's an expensive company but do they demonstrate the earnings power that could justify the price? >> nothing wrong with this company, it's a fantastic company, the technology side of this is not something i think that is that innovative but ultimately they have a major leadership position, how long they hold on to it i'm not sure. i think the bar is also very, very low, i think there is a lot of people defensively in position, i think there is a tradable scenario. but as we have been saying for the last week i'm not sure that the market is ready to buy as if they were in the last quarter. i think it's a challenging time for the market and i woul

star billing for netflix on wall street. shares popping after the company reports a surge in international subscribers. shares of ibm headed the other way. the stock sliding, despite a better than earnings -- better than expected earnings report. a top day for twitter yet again -- a tough day for twitter yet again after system problems shut out millions of users. winlix reporting a huge with better than expected subscriber growth in the fourth quarter. shares spiking over 9% in after-hours trading. added more than 5.5 million subscriptions worldwide, beating analyst expectations. sales grew to $1.82 billion, of $1.83of projections billion. what is next for the world's largest paid online tv network? here with me is on trace wants and from new york, with a company that analyzes video streaming data. l.a., our netflix reporter is here. let's dig into the numbers a little bit. is international subscriber growth going to be enough to offset domestic growth going forward? is.etflix says it last quarter we had a similar situation

is it just -- am i just going to go for streaming, or is netflix indispensable as netflix. that's why the company is so focused on original content, having that one must have show. i think i see a secondary issue potentially with the domestic story, which is you can sort of see it ahead to a time when netflix is a less consumer friendly -- you either have to get pricing to be a little bit more stout and under pricing their product, possibly. they have to crack down on sharing of passwords. they have to basically milk the customers and not any longer. they need to be the here wroe against big cable. >> that's the article in "the journal." 90 million subs may not happen in this country. once you come to terms with that, you charge more than a dozen dollars a month. >> there's no reason they won't get to the 30%, 40% margins. when you look at the rbc report, they already have those in the numbers for 2017 domestically. to me the bigger issue is this is not landing a rocket on its tail on a drone ship, right? this is not as amazing -- i don't think netflix is that special. this

so we see netflix rallying, but netflix has been hit hard with omentum names rolling over. do you think the selloff we saw in the last few weeks continues? michael: i think it does. tend to be big't issues of credit and when they do, they have high credit ratings. but the names do enough damage to the overall index that you see a general liquidation of interests. scarlet: can we go back to the chart of the atlanta federal -- atlanta fed runs rate? you talk about this preemptive tightening. what does that suggest about how much further along in the investment cycle we are then investors realize? think corporate conditions are deteriorating in the way that they did in the fourth quarter of 2000 and this may be the end of the corporate softness cycle. in a time of substantial deterioration. we don'twe are and know it, what is the potential downside for the market? michael: it is substantial for the parts of the market that feel it most. otherk the danger is sectors are directly impacted. , you see sectors with no direct connection to this problem start to go through their own

emily: netflix has been upfront.e spending billions of dollars on original content, but still buying other content. is this buy-in on original content, when do we know it is paying off? >> 2017. netflix has said they will start to deliver material profits in 2017 because that is when they finish their global rollout which is supposed to be this year. they should finish this year with the possible exception of china. starting in 2017 and 2018, you will start to see profits. we don't know if that will happen, but that is what they have promised. emily: much of the programming we have seen on netflix has been spectacular. david, how bullish are you? >> i think that netflix is in a similar position to walmart. they have defined it industry. amazon is coming up there tailpipe. if you look at the price of amazon prime, it is pretty much the same as subscribing to netflix, but you get the free him delivery and everything else. the quality of amazon continues to get better and better. netflix still clearly has the best conte

netflix, the best performer of the last two years.nalyst rich greenfield now says it's still a must own stock. some of the traders, though, are getting altitude sickness. we're going to debate netflix ahead of its earnings report. plus, we have the best performing tech fund manager since the dot combubble. that's right. he has beaten everybody since then. he has done it without owning a select group of stocks. we talk about often on this network the vet to his success. just ahead. welcome to opportunity's knocking, where self-proclaimed financial superstars pitch you investment opportunities. i've got a fantastic deal for you- gold! with the right pool of investors, there's a lot of money to be made. but first, investors must ask the right questions and use the smartcheck challenge to make the right decisions. you're not even registered; i'm done with you! i can...i can... savvy investors check their financial pro's background by visiting smartcheck.gov okay, so you launched your bank's app. now what? how will you keep up with the new

last year netflix was up 135%. i don't have to tell you, melissa, original content which has folks glued -- 75 million, just confirmed. thank you, liz, our awesome producer down at new york stock exchange. netflix met the international subscriber growth number. that is why everyone here is very pleased. back to you. david: lori rothman, thank you very much. melissa: here to weigh in, jack hough of "barron's" and david dietze wealth point management. you heard lori with the number, of subscribers of 75 million. >> over on international adds. what i want to see, i haven't looked at yet, guidance on first quarter will be important. the reason netflix turned on the switch to more than 100 new markets at beginning of this year. they haven't put any effort behind it. they're not rolling out special site for all these different countries and markets. there is no new content. saying anybody who wants it could have at it. could lead to first quarter, international subscriber growth number well ahead of the treatment estimat

netflix shares were down 8%.ar they posted a gain of 132%, robert baer drop the stock .his morning joining us now from l.a. is lucas shah who covers entertainment and david kirkpatrick still with me. let us dissect what baird is saying here. talk about subscriber growth and what is happening overseas. do they offset? >> is not so much that they offset but the question investors have is whether netflix can substate -- sustain the level of subscriber growth. netflix has sold everyone that it is a growth story that it will get eager and bigger and the subscribers can pay for all the money they are funneling into expansion. that growth has slowed a little bit in the u.s. which is one of the reasons why they had their first down quarter and a while. -- in a while. if that continues into next year that could slow some of the momentum they get in another few hundred territories. emily: netflix has been upfront. they are spending billions of dollars on original content, but still buying other content. is this buy-in on o

netflix. eventually we'll get amazon.ortant is that growth story to the overall market sentiment? if the triber numbers internationally look good for netflix, for example, might that give people hope? >> well, i think they'll get some, but i think in particular they'll look for guidance. how firm is the guidance? how optimistic is the guidance? that's what they'll playoff of. >> i do think that if you are a fund manager, you desperately want to be able to focus on things like these companies' specific metrics. you want to escape from this macrodriven kind of crude oil and policy led moves. i don't know if it's going to get clearance for that or not, but i do think if we -- if that becomes the story, it's probably a net positive. you're going to at least make the case. merrill lynch is out saying stock market is pricing in at 50% recession possibility, whereas the treasury markets, maybe like 25%. can't say that with any precision, but if you start to get the economic surprise indicators a little bit less negative, then it

netflix.e of the big banks beat expectations, morning stanley, bank of america, jp morgan and the banks are among the hardest hit on these concerns about oil, about china, about volatility, about debt, you name it. >> i think it's a very select answer is yes. netflix highlighting that but as you said across the screen today we have red and clearly earnings in general, the sentiment of earnings in general is not doing enough to stem the tide of this international u.s. story. >> and data which has been better. >> let's get to today's must read stories catching our attention. martin wolf writing for the financial times, china's great economic shift needs to begin. this is a great article on the long-term situation in china. not just the latest moves in the stock market and currency as well. loads of great views and data and he writes the authorities face a dilema and his conclusion is they're focussing on the short-term rather than the long-term and martin wolf will be joining us later in the wee

it was a case of good news and bad news for netflix. gary b. smith likes netflix.ribers in the fourth quarter boosted by international expansion. netflix did miss target for customer additions right here in the u.s. so many people have netflix. netflix earned 2 cents a share down from 10 cents a year ago but that was better than expected. shares up almost 4% in premarket trading. that is a big deal when you are looking at the market we are looking at right now. >> nicole: you are lucky you have a new baby. you can put something on netflix. let's take a lock at the headlines of wall street journal. regulators tightening enforcement of rail safety rules, issues more alleged violations against amtrak and freight carriers, amid worries of shipping crude oil and hazardous chemical. they've turn today one thing they all can control and that's cost cutting. they have been done some and they will continue to do more. educators seek college admissions, more than admissions deans and educators in some of the well-known colleges and universities have signed onto this report t

netflix had a lot of nominations. it's not only the fact the offerings are out there, but critics and the public are judging them to be better than on tv. people are watching us on the internet. >> my kids watch shows on their devices. my wife is. it's hard to get everyone to gather around in front of the big screen tv to watch. ernie: thanks for joining us. more entertainment. this weekend the new "star wars" movie became the third highest grossing movie of all time. i've got a question about that. did you see the new "star wars"? >> i did. ernie: what did you think of it? give me your opinion. it's coming up in just a minute. we'll be having a lot of conversations with a pair of new york city commissioners over the next two days, daniel nigro joins us tomorrow and joe esposito on wednesday. we'll take a look at what they're facing and what their plans are for the new year. but first, russ is going to join me to talk about tom coughlin, are you ready for this, and the eagles. we'll be right back after the enrollment

not just netflix, google, facebook. >> but netflix earnings always crucial for its stock price on the day and this year more than ever i'm sure. in corporate news, they expect to boost fine oil production shipments this year. last year they said the outlook for commodities is sobering but strong output and strong costs should help keep the dividend in place. a contrast to its rivals. reaching at a deal for nearly $3 billion. they raised the stock offer to complete the month long fight for its rival. and royal dutch shell is exiting a major gas field project. it's up 2% today in line with a little rally in the oil price. >> so whatsapp has more than a billion users and may become more popular. >> good morning to you. you can now text send pictures or video for free to your closest billion friends. whatsapp is dropping it's $1 a year subscription fee. they're charging businesses to communicate directly with users. that could mean your bank could message you about a recent transaction or an airline about a flight delay similar to facebook's messenger able to hail a ride with uber. also i

now she is on netflix, where she is launching both a new talk show and a new documentary series that explores everything from racism to robots. called "chelsea does," it premieres this weekend at the sundance film festival and on netflix on sunday. >> distand up for many years. that's what gave me my career. it was entree into the world of, you know, what i did fair long time. i don't see myself ever doing stand-up gain. i kind of put that hat down. for me, that went with the show and it was two things that kind of worked together. i don't really see myself doing stand-up anymore. i'm not interested. i feel like i did that. i got great at it. and now i want to get great at something else. >> rose: and that something else is film making or-- >> well, i'm doing these documentaries. sed as kindng to be of a bridge to my new show which will be on netflix in the spring and may, and i wanted to do something tonally to introduce my audience to where i'm going and the direction i'm headed in. do you think this is going to be your legacy besides music, thatture brought marijuana to the masses

and there's this joke going around that netflix going global means netflix and chili. a phrase.and the crowd roared. >> the crowd goes mild for that. the force awakens is now the highest grossing film in north american history. >> the dark side. ♪ >> figures aren't expected to be released until thursday, but disney says the latest installment of the adventure from a galaxy far far away broke the $60 million mark set by avatar. this weekend star wars opens in china, the second biggest movie market in the world. >> all right. this story about lots of money. lottery players in the united states will have to try again. nobody won the jackpot. >> take a look at the winning numbers that you did not have. the jackpot for saturday's drawing now estimated at 67 $0 million. that would be it the largest in u.s. history. >> you didn't have a ticket. i didn't. >> i don't usually get into those things. money just buys you stress. relatives out of the wood work. in the check republican a group of swimmers found the weather favorable, even though it was only about one degree celsius. this is ho

netflix has even made it into the cultural lexicon with "netflix and chill." it's caught on in a way that, in my day, "v.c.r. and dry hump" never did. ( laughter ) again, thank you glenn frey. ( laughter ) but with so many choices on netflix, it can be hard to find the stuff you really love. should i watch "down periscope" with kelsey grammer, or a classic episode of frasier with kelsey grammer? or maybe just forget netflix altogether, and curl up with a good book, like "so far," the who knows? but now, there's a brand new way to help you find exactly what you want to see on netflix. >> netlix is pretty good at figuring out what we might want to watch. but if you really want to get the most out of the site, there are secret codes that let you access every possible category you can imagine. the codes are available online. they let you narrow down to really specific things, like "critically acclaimed british movies from the 1980s," "goofy action and adventure from the 1970s," and of course, frank's favorite, "suspenseful dramas based on a book." >> stephen: clas

we know you the evidence the makers of this controversial netflix documentary left out. >> wake up, netflix! >>> also tonight, one on one with director spike lee, opening up about the oscar uproar, growing anger about the lack of diversity in the nominations. will smith speaking out as well. >> that's not the hollywood that you want to leave behind. >>> first the "nightline 5." with root touchup from nice and easy. seamlessly blends with leading shades, even salon shades, in 10 minutes. natural-looking color as real as you are. show the world your roots with root touchup. >>> your treatment plan should focus on keeping your body strong so you can fight your cancer without ever missing a beat. that's the power of integrative therapies. the evolution of cancer care is here. learn more at cancercenter.com. cancer treatment centers of seconds. >>> good evening. perhaps not since the o.j. trial has america been so fixated on a criminal case. the new netflix documentary series "making a murderer" has millions of us dissecting and debating the bizarre story of steven avery. to the place where it a

netflix has even made it into the cultural lexicon with "netflix and chill." it's caught on in a way that, inmp" never did. ( laughter )nn frey. ( laughter ) netflix, it can be hard to find the stuff you really love.cope" with kelsey grammer, or a classic episode of frasier with kelsey grammer? or maybe just forget netflixth a good book, like "so far," the autobiography of kelsey grammer? who knows?rand new way to help you find exactly what you want to see on netflix. figuring out what we might want to watch. the most out of the site, there are secret codes that let you access every possible category you can imagine.line. they let you narrow down to really specific things, like "critically acclaimed britishrom the 1980s," "goofy action and adventure from the 1970s," and of course, frank's favorite, "suspenseful dramas based on a book."lassic frank. but seriously, this is going to revolutionize the way we watch netflix, compared to how we watch now, where you and your family scroll for an houre you left off at "lincoln" and then falling asleep two minutes later

because netflix and chill is a euphemism which involves neither netflix nor chilling. it's [bleep], that's what it is. so all these reporters are on tv busy going big blizzard coming in. you going to bleep, you going to [bleep]. >> yeah, yeah, it's snowing. if it's snowing i'm [bleep]. (laughter) now of course even with the blizzard shutting down washington d.c., the presidential campaign is reaching its climb axe, well, the first of many cli maxes. but this one is special because the buildup has taken so long. our polls are literally turning blue. fortunately, fortunately sweet relief is in sight. >> it's the final stretch to iowa. >> it's crunch time in iowa, new hampshire. >> the new york billionaire surging past ted cruz there. >> marco rubio, ben carson and rand paul behind, jeb bush, the latest iowa poll out from cnn has him at three percent. >> trevor: yeah, you see that there, see that there sth see that there? trump is crushing it. yeah. and these people here, they have got so few followers that if they were on twitter they would be eggs. that is what they wou

we know you thence the makers of this controversial netflix documentary left out. >> wake upx! et ready to show your roots. with root touchup from nice and easy. seamlessly blends with leading minutes. natural-looking color as real as you are. show the world your roots with root touchup. >>> your treatment plan should focus on keeping your body strong so you can fight your cancer without ever missing a beat. that's the power of integrative therapies. the evolution of cancer care is here. learn more at cancercenter.com. cancer treatment centers of america. >> number one in just 60 >>> good evening. has america been so fixated on a criminal case. the new netflix documentary series "making a murderer" has millions of us dissecting and debating the bizarre story of steven avery. tonight we're going to take you to the place where it all unfolded to meet the central players and examine the evidence the documentary left out. here in this tiny frozen over speck on the map the scene of a crime that has become a national obsession. >> now to a hot trend ticking over tv -- >> a netflix do

hi, neil. >> good morning. >> what do you expect from netflix? what should we be looking for? >> the key focus will remain on the subscriber numbers and the other will be on content cost and those will be the main two focuses. we're more concerned about the longer term prospects of the company but primarily the investment opposition on netflix good or bad is based around value and volume. we have issues with three things. three vs, value, volume and valuation so there's a lot of head winds. >> what are some of the head winds? and what are the longer term prospects. >> the content companies themselves now if you look at the press reports coming out over the weekend and wall street journal and other publications are saying there is netflix good value for money. if you look in the past they were at a point of getting further distribution for their content. now they're seeing the fact that netflix is one of many different offerings that are out there. i've got 50 different kinds of channels i can get that through now and actually for all of those content companies, a lot of the ag

netflix came up empty-handed.hough they did receive a ton of nominations for shows like orange is the new black and house of cards. dan. >> this is a trend we saw in the emmys. that amazon came on the stage and beat-out netflix in a key category here. again netflix won a few emmys in september. but down a whole heck of a lot from the prior year. and it tells me that hbo continues to dominate. they won 43 emmys. they didn't have a huge night last night. but hbo is the one. but if you are having the upstarts coming into the content, it becomes a much more crowded field and there are better places to be. my consistent view has been stick with time warner. that is the best content play out there and i wouldn't try -- i wouldn't buy amazon for it either. and i'm not buying netflix for it either. >> would you be concerned about netflix because of this? >> i don't know that you would be concerned. >> it shows that a competitor could make in-roads when it comes to -- without spending gones of money. >> there is room there

netflix is a hard stock to value. value it on earnings basis, that cash flow number i'm sure you didn't like. >> no, but it gets a pass on that while it continues to grow subscribers at such an incredible rate. we mentioned ibm before the bell, looking at it now. down about 6.5%, shares of ibm. warren buffett can't be particularly happy with his large investment there. >> they're buying back stock. >> currency will impact full year '16 by 1.3 billion. and last year the big investment shifting about $5 billion to her key areas of cloud, cognitive, analytics, watson, they have done aggressive advertising on security and mobile. >> weather channel. >> they have to get that moving. that's the key thing. will the growth there to be enough to offset. >> they grew business at 35%, strategic business. >> they did. >> that was much bigger than people thought. then software. watch goldman. goldman was a good quarter. you want to start looking at benchmarks. what is the book value? the company has a lot of cash. they can come in

netflix and ibm.s not been kind to the streaming media company, down after investors saw a stop race more than double in 2015. double in 2015. the spring and cory johnson -- let's bring in cory johnson. they are both worried about amazon in a way, right? cory: absolutely. netflix is also worried about his streaming service. cory: you're absolutely right. that is the biggest competitive pressure from both of them. netflix might also feel pressure from hbo, showtime, you name it. that is what we will be listening for on the conference call. the most important number for me is the commitment to contingency ve for the future. i have promises of payments, but they do not see how th -- say how big. they have cash flow growth, they should be able to pay those bills. but they all over $10 million to these commitments. the reason that the costs are going up so much because of amazon, showtime, hbo, all of that original programming all theseng on platforms. the reason that they are most ofd now is because their

viewers of "making a murderer" on netflix say the central figure should be pardoned. >> this has been controversial. but another key player says the show isn't very accurate. the story now from abc's linzie davis. >> reporter: the netflix series "making a murderer" has hundreds of thousands in an uproar after watching the story of steve avery. who was freed after spending 18 years in prison for a crime he didn't commit. not long after, avery is arrested for the murder of theresa hallbeck, a young photographer whose charred remains were found on his property. >> he wanted us to help him get rid of the body. >> reporter: the series showcases riveting courtroom testimony questioning the state's evidence against avery and his then teenage nephew. it. >> reporter: the defense attorneys suggest he was framed. >> you're hearing the evidence of the conspiracy. >> reporter: avery and his nephew were convicted of hallbeck's murder and sentenced to life in prison. >> nothing in your life suggests that society would ever be safe from your behavior. >> reporter: now outraged viewers want them free