checking on the shares of netflix and rbc's ceo rick mahaney.over to rick santorelli over at the offices. >> and there are doubts of the dow jones industrial averages, and nobody has any doubt. the doubt is about the economy which makes trading so hard. if if central bankers were on your side, you would have a tailwind, and right now, we are in the sweet spot for stocks. and we have been talking about it for a while, but the problem is if the central bankers get the reins yanked away, and decide to normalize in a more aggressive action, it is like pulling off the tablecloth, and everything on top is not going to be staying put, but a mess. so it is charts versus the central banks. i want to look at the foreign exchange, because it is difficult there. is no real measurement, and you can't measure the dow independently, and it is against the yen and the euro and all of that, and it is like the "alice in wonderland" direction ashs fnd you wanted to go to the reality, the ruler can't slink with everything else. here is a constant ruler if you buried

that's a direct attack on netflix and a dollar less. netflix shares declined about 3%. amazon shares are up 1%. we'll be back after the bell with numbers and the commentary from reed hastings. kelly and mike? >> you mentioned, too, maybe this significance isn't just so much to make a point of, hey, we've got to this inventory available and it's out there for you but to also kind of poke netflix on the even of its earningings with a lower price. >> to undercut the list price and act as an anchor. >> i wonder about that that they might be able to impose over time. that's part of the bold case here is that netflix really does have room to do that as they've tried recently to raise prices. >> absolutely. they've been building out their range for some time. if you look at the alternatives, they have children's programming, original shows from marvel, their own exclusives like "house of karsd," so ned felix is trying to off a lot of things to different niche audiences and they have so much different data that they've been able to use that to develop these different shows and

they are out there competing with not just netflix now.t's the worst quarter they've ever had in terms of free cash flow. they're operating margins are at 2%, very low. and this mystery of content , where the minimum they owed at the end of last year was $10.5 billion. stuff.ood thank you, cory johnson, bloomberg news. shockingcoming up, a chart. the answer to today's mystery chart later this hour. alix: what is it? ♪ alix: what'd you miss? then meeting of oil producers in doha failed to reach a deal on production. bullishnificant, major outages in kuwait, venezuela, and ecuador. those matter. london, theow from head of citigroup. seth, do you agree with boone pickens? >> yes, it's amazing the amount of press coverage the doha meeting was given, and then literally nothing happened. joe: i have a question about the strike in kuwait. is this something we see workers upset about pay cuts, privatization, is this the type of thing you see that rebalance is the market, that you are likely to see at a market bottom when its push coming to shove a

i like netflix. at that price of $7.99, it was a bargain. >> reporter kelsey stealer says the vast majority of subscribers won't drop their plans. >> netflix is something everyone uses whether their friends are coming over, watching by themselves, everyone has to know what's going on with house of cards and everything. so i think people will talk but, ultimately, everyone's going to depend on it heavily. >> on the upper feast side, >> are you torn up about it? >> i don't think so. i think it's actually worth it. >> still a bargain. >> origin is the new black, breaking bad -- >> walking dead. me and my walking dead. >> everything's on it. >> we've got to get game of thrones there. >> i've got something for that. >> the aspca and the alliance of new york city's animals held the first paws parade. madison square park and marched to union square. many were able to find the perfect pet and to give that animal a loving, new home. >> duke is here now with a look at what's only coming up in sports. >> hello.

netflix reports earnings in just about an hour.e first numbers investors will look at is the company's overseas subscribers. joining us now is -- with a secret look at netflix is bloomberg west anchor emily chang. what are we looking for in these overseas numbers? it's anydon't think secret that on the day of the earnings call, amazon have said we are going to have our own standalone video service. this is something amazon had offered for a long time but was rumbled up with an amazon prime membership. now you can pay for that separately. it's not really that economical. bezosthat is just jeff trying to underscore the great deal that you get with an amazon prime membership. the main thing we are going to look for is domestic subscriber growth. priceecently raised their to nine dollars nine nine cents a month, which is about a dollar more than amazon. this is the first month that price is going to go up. of course, netflix is big when it comes to original programming, competing only with hbo. they are aiming to get to 600 hours of or

moments ago onk "closing bell" here's what netflix investor billionaire mark cuban had to say. >> netflixottling was a response to their customers. i'm not a fan of net neutrality. i think that's a huge mistake and will hold us back in terms of advancing the internet. what netflix does with its customers to send money on their bandwidth bill, i didn't have a problem with it as a netflix shareholder or as naefltics user. >> do you, guy, have a problem? >> nobody is going to buy netflix on valuation, number one. i think we all agree and i'm surprised it has traded as well as it has. 98 has been the level. mark cuban talked about that over the summer when he was buying the stock. reed hastings does pretty much done everything right, maybe a slip or two along the way. this quarter, in my opinion, i think the report on the 18th is the about as important a quarter as netflix will have maybe since its inception. i think it will continue to real into the quarter. i think if you're concerned 98 on the downside is your stop, but have you to admit with seemingly bad news it's traded welly well. >> s

netflix? what's most important? >> i think netflix -- i'm glad the stock is down.rocket going into the quarter ever since it bottomed at 85. this is what's necessary to try to take some of the edge off. i think the last two quarters people worry about domestic sign ups and then the stock bounces back pretty quickly. when it comes to tech, pepsico gave you an interesting perspective about what the tech companies might do. they did not change their currency forecast. if they had used spot, then their forward looking numbers would have been much more positive. i wonder what ibm's going to do since ibm other than google and apple has what i regard as the worst swing. i do think pepsico is great, people want to sell them down with oil. oil is a one-day phenomenon. you've never had a situation since the peak in 2014 where you've had two weeks after a big decline of this magnitude where it mattered. so i think people should take a look at the stocks that are getting hit today and do some buying either at the end of the day or tomorrow because these prices not positive abo

. >>> shares of netflix will fall ahead of strong quarterly results. it now has 81.5 million subscribers around the world. in the u.s., the customer base rose to 2.2 million. 42% of the subscribers are outside of the united states. netflix lowered the growth forecast for the year. now it plans to increase prices gradually. now amazon is launching a subscription to compete directly with netflix. the lower guidance that concerns the wall street pros. >>> primary day in new york. it is here. "new day" picks up now. >> no new yorker can vote for ted cruz. >> nominating donald trump hands the election to hillary clinton. >> you can't put me democratic nomination. >> we have bad news for them. >> the candidates running this cycle are not typical. >> standoff for real fundamental changes in this country. >> they know i'm comin' after them. they're already coming after me. >> we're going to beat crooked hillary so badly, that your heads will spin. -- captions by vitac -- www.vitac.com >>> good morning. welcome to your "new day." it's tuesday, april 19th. 6:00

that bodes well for netflix even at a slightly higher price. for "nightly business report," i'm julia boorstin in los angeles. >>> citigroup report at steep decline in quarterly profits. that's where we begin "market focus." the bank said loans related to the energy industry and lower revenue from investment banking caused profit to fall 27%. however, that was still good enough to top analyst expectations. revenue also same in above targets. shares of citigroup down a fraction to 44.92. >>> charles schwab saw its quarterly profit and revenue increase from a year ago. the brokerage and banking company reported revenue that topped analyst estimates while earnings fell in line. shares of charles schwab fell a fraction to $28.53. global markets made its debut as a public company. the stock exchange operator offered over 13 million shares priced at $19 a share. the company attempted to go public four years ago but a technology glitch stood in its way. shares surged 21% to $23. >>> meanwhile, costco has increased its quarterly dividend to 45 cents a

stock -- netflix. us from minneapolis is michael olson, a senior research netflix p arevers nice to have you here with us. let's talk about earnings. what do you expect from netflix? >> week spent a solid report. the focus for investors is on international. they missed domestic and the good news is it brings expectations down. as they inch closer to a saturation point, that is may be becoming less relevant. they are probably halfway to what will ultimately be 60 and 70 million u.s. subscribers. on the international side, we are in the early innings. it should be enough to sustain the stock. carol: they are still losing money overseas, correct? >> they are. whereare certain markets they have become profitable. canada, western europe, some of those countries are becoming profitable as well. we expect profitability to lag domestic profitability because as they enter the new markets, they have to do a lot more marketing. these are markets netflix has not been to before. did anyou guys interesting survey an

can netflix dominate without china?avid: china has always been a terrible market for american television. piracy is rampant. you know, the movie studios figured out how to do stuff in china maybe five years ago. now they are making real money and i expect there to be a lot of growth there in the next five years. and i think we have spent a lot of time talking about china. emily: what about apple? what do you think is apple's future in television? ♪ emily: how did you get to hollywood? david: i just drove here. emily: in a volkswagen beetle? david: in an oldsmobile. my grandmother's oldsmobile. i came out soon after college. it was actually when i was in scotland. i was in glasgow and i fell in hard-core film geeks who would have given their right arm to move to hollywood and i realized, i have no immigration problems. i'm american and has an american -- have an american passport. i can just drive there. and i did. i wanted to be in the movie business. it worked out well. television, in the turn between the 1980's-1990's

biggest metric to watch is netflix's subscriber numbers, indicator of how netflix's investment in originallping it compete with new rivals. perhaps the most important subscriber number is the one that netflix forecast for the next quarter. ubs estimating that roughly 17 million u.s. subscribers will be impacted by this price in greece and 3% to 4% will cancel the service. netflix shares are down so far this year, but over 12 months the stock is still up over 60% and many analysts are bullish on netflix's growing assortment of original shows and the fact that it has lower prices than most rivals. the question is whether subscribers will bulk at the few dollars extra they will have to pay every month. >> thank you very much. what is the trade here? john? >> i put on a call spread, it is $100 odd stock, and i don't like buying those kinds of stocks. and holding them into an event like earnings. but i don't mind having a limited risk trade in the calls. so i have that because of some pretty strong activity in the stock. and the options. so i'm in as far as a limited risk trade to the upside. >

as far as netflix, no need to be a hero. there's no reason for this baby to turn around until it speaks next. that said, next quarter, i bet it will be positive. ♪ ♪ [engine revving] the all-new audi a4 is here. i'm spending too muchs for time hiringnter. and not enough time in my kitchen. (announcer) need to hire fast? go to ziprecruiter.com and post your job to over 100 of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. (announcer) over 400,000 businesses have already used ziprecruiter. and now you can use ziprecruiter for free. go to ziprecruiter.com/offer6 >>> i like to say there's always a bull market somewhere. i promise to try to find it just for you on mad money. i'm jim cramer, i'll see you tomorrow. to get through all these shows! now are you with me? three, two, one... watchathon! big is back. xfinity watchathon week now until april 24. the greatest c

netflix retreats. as old tech and new tech issue earnings report cards for investors. >>> talks collapse. no oil teal in doha but crude prices didn't crumble as much as expected and there's a surprising reason why. >>> fighting zika. the drugmakers developing vaccines to help combat the newest public health concerns. the first of a three-part series on "nightly business report" for monday, april 18th. >> good evening and welcome. the dow topped 18,000 for the first time since july. but we begin tonight with a look at old tech and new tech in today's economy. ibm and netflix, both reported earnings today after the bell and the two companies have one thing in common -- investors are disappointed. first netflix. shares falling and falling hard initially in after-hours trading. the video streaming service says it won't add as many subscribers this quarter as expected. the reason, price increases. and on the other hand, the numbers for the most recent quarter weren't bad. not bad at all. in fact, the compan

>> i think netflix is in a dominant position.t can afford to make rises to $10 and keep the majority of its customers and 17 million customers out of 80 million it will impact immediately. over the medium term, the next 12 to 18 months, i see about five challenges. the first is increased competition from the big internet eco systems, apple, google, amazon, and so on. these guys have a lot of cash. they are big internet ecosystems and want to move into tv. netflix is a nichee commerce player they could sideline in the next two years as they've done with music and other niche and ecommerce fields. that's the number one concern and there's a number of other concerns too. >> michael, let me ask you as well, at what point you think netflix will lose pricing power here? >> i think there's no question that they are going to lose some subscribers as a result of the uptick in pricing but i think you have to keep in mind people are watching netflix an hour or two hours a day, the average is over 90 minutes. there's going to be maybe a smal

every one of them responds with netflix because they don't have content. they have locked in the content at netflix, and they continue to grab content. >> the double-edge emed word. >> yeah. >> they have $11 billion in content obligations and a global market that i don't think will saturate quickly because first of all there's cultural issues. 50-50, at some point relatively soon, i don't see it getting there, and the margins and their content obligations and the competition means the best. >> i think this stock is overplayed. >> we've all said competition for three years, and when you really look at the numbers it's still netflix here and everybody else. >> so your point about the younger generation though and they said netflix has pricing power among the mainlyials as well as the crowd and higher income people and they are holding on to these people even though they are the ones who will go to this. >> i can't get comfortable with valuation but i can on this story and -- i mean, they keep coming, the mainlyials, right, so the demand is there even if ther

while everyone is watching shares of netflix declined today, another mad i can't name is sinking, viacom's slide coming up. >> target raising it's minimum wage to 10 bucks an hour. we will break down the impact of the wage debate. >> plus the car of hbo's silicon valley will join us live ahead of this weekend's season premiere. we will discuss the potential impact on the real silicon valley will have on that show. >> as we await earnings after the bell today from intel and yahoo among others david faber spoke with jeff smith earlier. he joins us with more on that fascinating tale. >> people are so focused or at least many publications are very focused on yahoo's potential sale of its core business but there doesn't seem to be quite as much focus on the impending fight that's taking place with starboard, the firm that owes 1.7% of the shares of starboard launched an attempt to take control of the board of directors of yahoo, but it's interesting, the conclusion of that proxy fight will come after the conclusion of the process to sell the core business. so i asked mr. smith wouldn't it be be

lauren: keeping our eye and shares of netflix and ibm. we will hit growth in ibm posting this for sales in 14 years. both stocks set to open sharply lower this morning. nicole: could more years handle the rockets about their star, south korea. down to the wire and a last-second play. we let you know who won. lauren: wisher will pick five of 1:00 a.m. welcome to "fbn:am." thanks for getting your day started. the latest breaking news and what to expect the day ahead. true to do it is decision day in new york as voters head to the polls to choose a presidential nominee. 95 delicate at stake for the republican. 247 for democrats. front runner donald trump looking for support in a massive rally yesterday. here's more from our own peter barnes. >> despite his lead in the polls today, donald trump is not taking any votes for granted. he went to buffalo to hold a campaign rally. we also heard them talking again like the presumptive nominee going after hillary clinton. >> bill clinton was married to cricket hillary clinton. you know that, right? [

we were just talking about netflix.ondetflix is biggest drag on the nasdaq ahead of the company's first-quarter reports after the bell. one pressure is the news that amazon is launching a video only --picion service subscription service to rival netflix. another is the upcoming earnings report. some investors are worrying if they can hit to the total estimates for the quarter. andguidance for the first second quarter be heard despite the spica turn? thistock is refighting turn we look at the february lows. it is an uptrend, but broken, suggesting very likely some sort of surprise out of this report and decent volatility ahead for shares of netflix. ? tty: what about apple it has been a drag for the index on the nasdaq. reporter: apple is the nasdaq's biggest member, waiting at 8% instead of 3%. stock is down having the worst two days slide since january, and the stock is down 4.5% on a report from the nikkei agent review that apple has asked iphone suppliers to keep production at current reduced levels. surprisingly --

netflix, over 12 times that of amazon. amazon is spending roughly half of what netflix is. it's an expensive race for amazon to keep up with netflix. >> it's going to be expensive for any player. there's a ton of bidding wars. we have to leave it there for now. thank you to all of you. >> it's the favorite time of the year for buffett. berkshire class a stock, well outperforming the major averages. becky quick is live. take a listen here. >> you can't have a federal reserve if negative interest rates without creating tremendous bubbles and creating the health gap, and it's doing a lot of things that are unforeseen have unforeseen possibilities. i believe in general that there will be a day of reckoning unless we get fiscal stimulus. >> a day of reckoning unless we get fiscal stimulus. what was warren buffett say about that, becky? >> not exactly the same thing. warren buffett is an optimist. that's the case today. especially if you're looking at the long haul. that's for stocks and beyond that. it's been a volatile year in stocks and a lot of the 40,000 berkshire shareholde

hackers now targeting netflix accounts. how they are accessing personal information. >> pam :new at 11. hackers are targeting netflix accounts. and making money off of victims. cybersecurity experts say, hackers are using phishing scams and malware. to get account details. then. they sell victims' subscriptions on the deep web. even though netflix blacks out most of the credit card information online. hackers can still use those details to send victims emails --- asking them to update their account information. if someone is accessing your account. netflix recommends signing out of all devices. and then resetting your password. and coming up next. we have an update on the brave chihuauhua that led c-h-p on a chase across the bay bridge. across the bay bridge. those are some good looking tomatoes. yep. how long have you been growing them? for a couple months. me too. hey leonard, if we've been growing our tomatoes the same amount of time, why did your dirt grow more than my dirt? because my dirt's better than your dirt. oh.

>> jim, quick on netflix.dn't make sense of it, but help us try to make sense of it. how much could it possibly be worth? >> i think the international guide is just way too low. and i think 42 billion -- look, if they're right about how great hbo is and they follow in hbo's food steps, it should close the gap with time warner. it's just they picked that 2 billion number, i don't know how they picked that number. they have -- also the call doesn't sound good when they talk about like how certain movies are. that stuff only works when they're talking about momentum and signups, otherwise i really don't care whether that movie is going to play well in brazil. or orange is the new black 14. you got to have numbers before you can talk about the movies and they didn't. >> jim, thank you. when we come back we're going to talk about the biggest stock movers in the morning. they say that in life, we shouldn't sweat the small stuff. but when you're building a mercedes-benz, there really is no small stuff. every decision

bank, netflix, ibm.re are your strongest convictions of clear beats or misses on how you are invested? >> i think the broad spectrum, you should think about the companies -- what american companies are good at are guiding expectations and managing costs against those expectations. i think earnings will wind upbeating as they have consistently since the financial crisis. i think the bigger question is can we see sales beats? and that is going to be much more organic. much more sustainable and much better. if you think about the sectors, you know, the financials certainly benefitted from low expectations. they gave mid quarter updates and generally their businesses have been better than they indicated they would have been if we were sitting here in the middle of february. and when you talk about technology names you mentioned netflix, you mentioned in earlier comments about others. you have to think about great news but not quite great enough and that really gets to be the trick. is the news what we expect

the fee fee is okay. >> i like netflix. at $7.99 it's a bargain. >> some people are sure to complain but{ the vast majority of subscribers won't drop their plans. >> it's something that everybody uses constantly whether their friends are coming over there watching episodes. everybody wants to know what's going on in house of cards and everything. i think ultimately everyone will go back and depend on it heavily. >> "fox 5 news". board read it is going mainstream. they launched a set of mobile apps for ios and android. it's a major move as they look to expand beyond its 243 million monthly users all in an attempt to become a mainstream social media site. >> for the first time a spacex rocket landed on a drone ship at sea. the record had completed the mission of sending supplies to the space station, the first ship in nearly a year. they landed a rocket on solid ground earlier this year. >> a trip to the dominican republic inspired to students to help the islands local artist. they are now promoting products grown in the dr.

netflix, there is weekly options. i could look at next friday's expiration, the call premium plus the weekly stradle. it was offered, $12, implied move. over the course of the week, about 11%. so if you isolate just the earnings event coming monday after the close, the one day move is probably about 10% here. you figure out the weekly implied move if you do have w k weekly options here. i want to focus on why that implied move may be better than expected, look back when the company reported in january 19th, their q4 results, gabbed down 10%. look what it did. worked the whole way up over the course of the day and basically closed unchanged. options traders got off sides, 14%, the stock ended up being unchanged on the day. obviously it traded down afterwards, but a lot of options traders will work on their positions throughout the course of the day. long premium, you thought it was going to move back in january, you got creamed. that may be one of the reasons why the stock is not implying that much of a move. i want to

>> netflix has known amazon would be doing this for awhile. amazon is a scary company to compete against. they have a lot of resources. they have always called, bezos referred to it as an all you can eat strategy. this is the first time they have broken off and sent their battalions after netflix. he's thinking about competing against netflix which is scary for them. >> shows you how much amazon values its own content. $8.99 a month to get prime which includes your two-day shipping for anything else you want to buy on amazon. that's $10.99. that's only two bucks. >> he may actually be trying to make users realize what a good deal prime is. it may be the same strategy where he wants everyone on prime, but he says look how great the content is and you will get an even better deal if you sign up for prime. >> do you see this as a really spicy shot across the bow? >> this is something reed hastings anticipated in 2012. everyone knew this was coming. for now it's not the best pricing so he probably just wants everyone to stay on prime but it is sca

let's begin with netflix. shares are falling in the premarket despite quarterly results that beat the street. the company issuing weaker than expected subscriber guidance for the current quarter especially on the international front. meantime ibm out with q 1 results. jim, let's start with netflix. you said last night you expected downgrades to come, low and behold you have seven firms this morning at least cutting their price targets. many reaffirming their positions as buys, but taking their price targets down. >> you had bob on last night. that was fantastic at 5:00. my problem here when we get these downgrades, the stock can't rally. it's hard to rally intraday because someone is pounding the bit at all times. when things are going well you can sit there and talk about gerard depar duh and how much you like adam sandler and we have terrific content, when things are going badly, frankly, i don't care. and this guide for international, like where do they get that? you know what this was like? you start in pr

volatileyou how netflix is. in more than half of the last 10 times netflix has reported earnings, the stock has moved more than three standard deviations, which is absolutely huge. , that to look at ibm company out with first-quarter earnings, the shares down premarket. the company forecast q2 earnings lower than projections. ibm has suffered a four-year sales slump in an attempt to move into cloud computing and artificial intelligence. it has been tough going for that company. united health is trading slightly higher after beating q1 estimates. the health insurer is pulling out of five states next year. helpednsulting business it overcome losses on obamacare plans. j&j also beat just out 10 minutes ago with q1 aps, raising its full-year guidance or johnson & johnson expected to 6.68 this year. sachs -- earnings will be published in about 30 minutes. analysts we surveyed are looking at 248 on the revenue of almost $7 billion. that is much worse than just three months ago. /their earnings estimates by more than 5

netflix down, amazon up. well, netflix reports the latest earnings after the closing bell today. look, this is going to be a great quarter for them. expect about $2 billion in revenue. but pay attention to anything that netflix says, especially on the call about they're having a saturated market, not being able to grow their subscription base. they've got 45 million users right here in the u.s., 30 million overseas. so they're at the point where they might be saturated. and now with more competition from the likes of amazon, it might be difficult for them. neil: yeah, and a lot of them overlap on some programming. >> yeah. neil: thank you, lauren, very much. >> thank you. neil: all right. you know, this being tax day, i don't want to bum you out. hopeful you paid your taxes. but we talked about a little bit more than $18 trillion debt. do you know that is the amount of taxes folks have paid since barack obama became president? now, it's a startling figure but the fact of the matter is it works out to more than 124,000 bucks per u.s. worker per job. and that's not the half of it.

peter: what about chrome tv, apple tv, roku, netflix? are they competition? bob: i consider them come in entary.- complim i want to make a great broadband products that consumers know they can use. i try to make a distinction between tv and video. tv is an old-fashioned linear television network that people know traditionally. there is video, which is more dynamic, library concept. i want consumers to know that my broadband, has the best infrastructure on which they can choose to find tv or video they want. if somebody says, i like broadcast tv from you, netflix for other content, more power to them. we would love to work with netflix to incorporate an app on our set-top boxes. devices,er consumer but we cannot attract their attention. peter: are all of those companies readily did the same -- regulated the same? matt: for the most part. when we talk about internet, orderand, the fcc imposing title to regulations on member companies -- here again, we have members through their own desire, the government did not need to tell them deploy broadband. we have been

netflix went live to more than 100 countries last year.ervice started in 1997 to rent dvds by mail and later became a player in the entertainment industry after it began streaming movies and tv directly through subscribers. investment giant goldman sachs has reported a decline in the first order awnings -- earnings. market volatility has the company and bond trading. prices in china's economy has hammered their revenue, which fell to 47% -- l 547 -- fell by 47%. and in the u.s., we will bring in a correspondent on the numbers. the season is in full spring and netflix and goldman sachs are not smiling. >> well, there was talk about the earnings recession with corporate america for some time. if we look at numbers we have so far, most companies actually have reported falling profit like we have seen with goldman sachs. even if members came and not as bad as -- numbers came in not as bad, netflix is still on the losing side and there is worried about them increasing prices next month and that could be a cause why subscriber growth might be sl

the big story is undoubtedly netflix.s are plunging after the company offered weak second-quarter guidance on a domestic and international basis, more than offsetting the positive first-quarter results. there is at least one analyst who got this call right. they barrett reduced to second and third quarter estimates a few weeks ago below consensus. them oncehas adjusted again down. we look at the near-term chart, we see netflix sold off sharply after it's mixed fourth-quarter report. momentum more recently has given way to the sellers taking control. it could suggest that netflix is likely to trade back down toward this year's lows. mark: you know how much i like debt crosses. i remember a netflix chart from a couple of weeks ago. what is happening now? abigail: you have a good memory. days basically when a 50 moving average slices below the 200 day moving average telling us the near-term and long-term are turning toward bearish or downside momentum. there are three death crosses over the lack -- the last several years. 20

. >> host: what about the chrome tvs, the apple tvs, the rokus, the netflix? do you consider them competition? >> guest: no, i consider them to be more complementary. as i said, i'm a broadband company. i want to make a great broadband product that consumers know they can use to acquire -- and i've tried to make a very careful distinction between tv and video. tv is the old-fashioned, linear television networks that people have known traditionally. but then there's video which is a much more robust, dynamic library concept. but i want consumers to know that my broadband has the best infrastructure, the best network on which they can choose to find the television or the video that they want. so if somebody says i like broadcast t from now -- tv from now, netflix for other content, more power to them. in fact, we would love to work with netflix to incorporate an app onto our set-top boxes or other consumer devices, but we can't attract their attention. >> host: are all of those companies regulated in the same fashion? >> guest: for the most part. when we talk ab

emily: netflix also.hree companies took a big hit this week, with subscribers in the united states not growing as fast as people would like. at what point does netflix have to worry about the bottom line, making sure that these billions of dollars they are investing in original programming are actually going to pay off? paul: i think it's coming pretty quickly. you see what netflix is doing. there is a story this week that was really interesting about a crackdown on vpn, virtual private networks, the mechanism by which people who because of their geography cannot access the entire netflix library can access it as if they were in the u.s. netflix doesn't like that very much, because they don't have the rights to distribute this content in other countries. they are in a difficult position, where they simultaneously don't want to pay the rights holders to distribute content across all geographies, but that forces them to do very expensive content development for themselves. they see two freight trains coming

alternatively, they could compete like netflix or hbo, but again, that requires creativity.ou have to design your own original programming. so they come up with a third way, which is ask their friends at the fcc to let them get in between cable operators and content providers so they can basically resell this content as a third and even superior strategy, in their mind, for free. emily: what do you make of the argument that it will take a long time for cable boxes to roll out and ultimately, does it even matter? singer: it will not have an effect on video prices. it probably will not have much of an effect on set-top boxes. consumers are finding other ways to bring video into their homes. emily: we have to leave it there, but of course, this is an issue we will continue to cover and obviously a very important one. our bloomberg gadfly columnist is sticking with us. all bids due for yahoo! on monday. how many suitors are really interested interested in yahoo!? -- we will take a look. ♪ emily: potential yahoo! buyers have until monday to bid for the company's web operation. th