joining us now from minneapolis is piper jaffray and michelson. -- mike olson.ou say there's profit-taking here because netflix has been doing quite well and maybe the growth will slow, what's your view? : the stock was up 40% to $100 it would've taken a pretty heroic effort for the results and guidance to keep the thing going at that case. i think if you look at it though, it wasn't a squeaky clean quarter but there is one metric that investors tend to focus on and that metric is international subs international subs was great. it was the by one million in the quarter in the race international some guidance one million above consensus for q1. amanda: 83% of their subscriber growth is now global which is the kind of an enviable market position to be in. it sustainable is that and seems like the $1 million question for netflix is can they turn that into sustained subscription price growth? they have to pass on price increases as they need to. olson: international growth is very sustainable if you look at where they stand as far as market share, that's kind of the

want to bring in mike olson, piper jaffray's senior research analyst.verweight rating on apple. glad to have you with us. it seems to me the tale of two stories. one is disappointment with china but then upside in services. obviously knew what happened in the december quarter given the release the company had given in early january. the focus was in the march quarter guidance. march quarter guidance was relatively fine versus expectations. it was better than feared. ande look at the guidance, was 3% below consensus on a was 3% below -- it consensus on a revenue basis. china has stabilized. that is the focus going forward. david: this has been a growth stock. it's not nearly where it was last september or october. where's the growth going to come from? do it or do they have to look to india? >> that is a good point. we have to focus on what the potential growth is from here. opportunityat what there is -- services is the big opportunity. services coming in at a 63% about 500 basis points from what we saw a ergo. ago.w a year david: how large a percentage

i don't know what you do with this information >> all right, there's ma 1.5% joey >> piper jaffray great. top software pick for 2019 it's time for them to get above $100 get above $10 billion in market cap. i got long >> how about this market dow's up 213 the highs of the day stocks have been up for two straight weeks >> making america great again. >> going for three in a row. >> doesn't feel liblg it, but it's the truth thanks for watching. the change with kelly evans begins now >> officials from the u.s. and china are meeting now trying to hash out a trade afwreemt. should we expect to see progress plus, hunting for returns. bill miller phoning in with his take on these markets an we'll ask him about the curse of the trillion dollar market cap and a freshman fire brand on capitol hill new york's newest representative calling for a 70% tax on the super rich will it really bring in the money? that's all coming up but

i'm thinking about hbo and hulhu consider this insight from piper jaffray report this morning, we believe the primary determi in content quality. in november of 2018 we surveyed more than 1,100 subscribers and found that 71% of them feel netflix content has improved in the last year. we believe as long as the vast majority perceive that the service is improving, netflix will be positioned to periodically raise prices. in short, everyone knows that netflix provides a great service that represents incredible value. if they can get away with raising prices and they will, it's just a huge boost to the bottom line. that's great for netflix why did this positive action end up boosting the rest of the market what was the deal with the pin action for starters, the acronym for facebook, apple google and alphabet because of the etfs linked to faang, any move in netflix can move the entire cohort, and that's exactly what happened the etfs lifted the whole faang complex. i know it seems crazy. the idea that the tail could wag the dog like this, but it's true you can't underestimate the power of etfs

charles: you know, brian, also piper jaffray made positive comments on netflix. think people would be surprised to know the stock is up 35% last two weeks. that is why investors tend to go back to the momentum names but can't other names, other sectors lead the market back in 2019? >> i think, the stat you showed in terms of the value stock that outperformed last year i think is misleading. those are areas of consumer staples we believe have structural issues. value of six products that we manage, four in canada, combination of canadian u.s. stocks and two u.s. equity stocks, value and discipline growth disciplines outperformed since december 4th. charles: what would be example of names. >> financials. >> financials? >> financials and tech. charles: really? >> if you look the construct where dividend growth is the next three tofy years u.s. financials is strongest forward dividend growers in the world, number one. number two, if you have 7, 8% cash flow yield of apple and microsoft, they're throwing out dividend. those, consistent earnings are place to be. that i

have seen several price target cuts this morning as well, from goldman sachs, morgan stanley and piper jaffraye also seen an impact on some of contactors, all called lower. we will see what happens in a get to the live trade. that as get to the bloomberg business flash. ix has trimmed its profit guidance this year in a warning for retailers hoping to end it this year on a high note. the british clothing retailer reported a 1% gain in sales but extended the reporting. period after the holiday. the first retailer to report retail figures. it is seen as an industry bellwether. tesla shares dropped yesterday after the electric carmaker announced it is slashing prices by $2000. the cuts come as the company delivers fewer profits from the model 3 sedan than expected in the fourth quarter. tesla seems to have shaken off what the ceo termed as "production how" of introduction -- increasing production in the fourth quarter in the past year as. compared to last year saudi arabia's national commercial iyadh bank are seeking a merger. it would create the region's biggest lender, and be the biggest bank me

this a function of marijuana use, by the way, canopy and till ray got initiated as overweight by piper jaffrayu see an irony there. >> i wonder where constellation put $4 billion in canopy maybe that's a hedge bet i was surprised that beer is down slightly. the wine and spirit forecast i think is driving things. it is down single digits that's extraordinary we haven't seen these kinds of clear and whiskey and wine down this much. but you had a little comment this morning about that deequil the break. it is the only one that is up. i know he's got a good tequila, but, you know what, wine and spirits are slowing down and you have to wonder, you have to wonder, andrew, if that isn't because cannabis is on an upswing. despite alex bernsen saying we have to worry about the long-term consequences what is the alternative when it comes to health care it is opioids. i prefer to think that pot is better >> okay. we should do a cramer bernsen debate on pot. >> i love alex i love your show this morning. you hit everything thank you. >> thank you >> i can't -- >> cramer saw that too. >> yeah. a big part of