here's reed hastings on the call last night. >> we're executing really well on the content side. obviously "ozark," "stranger things," lots of titles, lots of things we're improving everything we do, the marketing, servicing, slowly that all pays off again, we're talking about, you know, losing 1 million instead of losing 2 million. so our excitement is tempered by, you know, less bad results >> other highlights from the quarter, netflix estimates it will add 1 million net new subscribers in the current corner versus street estimates it says it's acquiring animation studio animallogic as far as the supported tier, netflix says to expectthat option in early 2023 one major headwind and not just for netflix, currency problems the company is saying, quote, we have high exposure to this unprecedented appreciation of the u.s. dollar because nearly 60% of our revenue comes from outside the u.s., dom. it's something i'm sure we're going to continue to hear. >> silvana henao, thank you very much. >>> the clock is ticking on the restart of the nord stream 1 pipeline dow for scheduled maint

. >> netflix here is reed hastings offering his assessment on last night's earnings call. >> we're talking about losing 1 million instead of 2 million our excitement is tempered by, you know, the less bad result. you know, looking forward, streaming is working everywhere. you know, everyone is pouring in it's definitely the end of linear tv over the next five, ten years, so very bullish on streaming. >> he did say losing a million, jim, it's hard to call that a success but well set up for '23. >> i watched this stock in the morning where everyone said relief rally this was simply not only not a great quarter, but i think it was a recognition that they're talking about a lot of mixed messages we're going to use microsoft why? because we're going the use microsoft. we did "stranger things 4," and now you're kwgoing to watch something else it wasn't a reaffirmation of growth those looking for it were disappointed >> that's a great way to put it, jim. the couple calls i had this morning with people who don't want to own the stock, and i will point that out, not owners of the stock, less bad is

you have reed hastings -- they were the highlights of last year and that stock has crashed down to earth then you have david of warner who is highflying at the moment after the merger of those two businesses despite an aggressive campaign of cost-cutting and there is optimism. what will happen in a higher rate environment. overall, we also talk about how this is still a birthplace for future deals to be done. ed ludlow. bloomberg news, sun valley, idaho. >> let's look at the latest headlines now. slower profit growth in the last two years. lukewarm consumer demand leaving margins. preliminary operating profits rose to $10.7 billion. sales increase 21% over $69 billion and that is slightly above estimates. we will get the divisional breakdown this month. they are looking at reviving the sales in indonesia has dependent bank. although that is based on tuesday's closing price. giving evaluation of about $2.6 billion. any revival would mark a third attempt to unload. british airways is canceling another 10,300 flight stitches -- due to peak summer travel season's a struggle with staffing. th

but i want to make a bet on reed hastings. >> and what do you make of the ad about the 2023 event? do you think it should be sooner or does 2023 feel right for you? what does that do for you as for the company adding more revenue? >> i think it's smart or appropriate that they are talking in measured terms about the impact of the business model with the with interesting revenue market and that they are not expecting at lo. they are trying to keep expectations lower, and this is a company that didn't need an ad model six months or a year ago. i imagine they are driving very hard on this. why go slow on this? i think we have seen this in a lot of other platforms. and let's be clear, we have sat for years and watch withing the ad-supported model in regular tv. no question people will subscribe to this type of model. i think listening to a business that's downsizing expenses and certainly right sizing some of their growth relative to where they are here makes a lot of sense. it's amazing where they have gone in three quarters. a year ago, the downgrade, and here we are. this is the fir

emily: welcome back to bloomberg technology, that was the netflix co-ceo reed hastings on the earnings i want to get to the netflix relief rally after it over promised on subscriber losses for the second quarter. turns out, overpromising in this case was a good thing. but how good of a thing, how confident are you that netflix can continue to cut its losses? >> i think it's going to be difficult. they have a lot of battles to contend with. when you look at the stock in the reaction, what a difference a quarter or two makes. we are seeing a big shift in the time of the market. netflix was a company that only traded on subscriber growth. that pretty much was the singular metric people looked at. now you have a decline in subs and a downward guidance to the third quarter subs, and the third quarter outlook. there is clearly a shift in sentiment and a reprioritize ation of what the relevant metrics are, and it is increasingly looking like monetization over the absolute number of subs. emily: the markets took a turn in part because of the subscriber loss, do you think this shift in sentimen

that was netflix co-ceo reed hastings on the earnings call i'm going to get to. netflix relief rally after it over promised on subscriber losses for the second quarter. james, good to have you back on the show. it turns out overpromising in this case was a good thing. but how good a thing? how confident are you that netflix can continue to cut its losses? >> i think it is going to be difficult. they have a lot of battles to contend with. when you look at the stock and the reaction, what a difference a quarter or two makes. we are seeing a shift in the tone of the market. netflix was a company that only traded on subscriber growth. what is the sub number? that was the sink of the metric that people looked at. now you have a decline in subs and downward guidance to the third quarter subs. so there is clearly a shifting sentiment and re-prioritization as to what the relevant metrics are and it is looking like it is going to be monetization over the number of subs. emily: the markets took a turn in part because of netflix's loss in subscribers three months ago, which

david: reed hastings there, not as bad. we will get to the numbers in a moment. looking at u.s.ures, risk-on. hstech up 2.5% in hong kong. yvonne: the netflix earnings was the driver of perhaps his company turning more to the upside. maybe they are seeing a return to growth next quarter after losing close to one million subscribers in the previous period and that was less than half of what wall street feared. let's get more now with su keenan. breaking down the results. it is not like they can take a victory lap because the guidance was pretty weak as well. su: there was a lot of weak data in the numbers they had a key message, and that is, it could have been worse. and you have to think the new season of stranger things, which clearly helped keep more subscribers from walking away. the scriber loss, half of what wall street feared, and that was enough to send investors cheering for netflix, powering a relief rally as much as 12% in extended trading at one point before pairing that gain. technical analysts would point out some may have been shorting the stock and had to buy back

ceo reed hastings has a message for investors -- could have been worse. >> if there was a single thingt say, "stranger things," but we are talking about using one million instead of 2 million. so, tough in some ways losing 1 million and calling it success, but really we are set up very well for the next year. alix: joining us now is michael pachter, over at wedbush securities. michael, always great to get your perspective. if he could have been worse, enough to be positive on the stock right now? michael: i think it is. if you look at -- let's just look at the u.s. and canada. they lost 1.3 million subscribers, and that is fewer than 2% of their total subscribers. they raised the price by 10%. if you work through price elasticity and demand, that is pretty good. i don't think netflix is yet ready to accept that they are in a slow growth, high profit mode, and they talked a lot about that on the earnings call and in the letter, but they are certainly managing slow growth. they are cutting their costs, they are cutting back on content spend. that is the reason investors are excited. netf

. >> reed hastings and ted saran does are here two weeks ahead of the earning report some are speculatingat if netflix subscribers continue to decline, it could become an acquisition target, and a buyer could be the likes of comcast, cnbc's parent company. ceo brian roberts arriving here as well. another giant, disney ceo is here the predecessor, bob iker is also here. recessionary pressure will accelerate consumer shift toward add-supported premium services the more the market caps drop, the more different deals we're sure to seal another thing we're hearing is that tech companies such as amazon and apple, they're constrained as buyers because of all that regulatory oversight. guys >> interesting, julia, i also wonder what you're hearing and expecting about content itself is the bull market for content over there's a headline i saw yesterday about hbo max pulling back on original content in europe do they have to choose their targets more carefully, spend less, and might that ripple through the market >> reporter: well, what i'm hearing is they believe they're still going to be able to g

reed hastings said the popularity of streaming will contribute to the end of linear tv maybe within the. the prediction is coming after netflix reported a loss of nearly 1 million subscribers during the 2nd quarter. netflix lost 200,000 subscribers in the earlier quarter and that marked its first decline in more than 10 years. >> were dinosaurs, yes, but there's kronon. so we'll be around. you might notice something different on disney's streaming service this weekend. you can now stream both deadpool movies and logan on disney. plus, these are the first r rated films ever available on the platform. disney play a plus made the announcement yesterday at comic con subscribers are encouraged to update their parental controls to ensure a viewing experience suitable for their families. >> and now kron 4 sports from the 18 t fiber sports desk. >> the countdown to football season is on. you know, things are starting to get real. when training camp begins. now, the forty-niners report to their training camp on tuesday and the raiders had their first day of training camp practice yesterday. cont

the problem is that's really all they've got and i'm a huge reed hastings fan.but there's been no bounds whatsoever in this stock at all over the last couple months. so i think you got to faded here and look for lower levels. i hate to say that. >> all right, don't be scared. just a sound effect. let's get to j and j. tim, trade it or fade it? >> i think you traded, i like j and j, i like the diversity of the business, i like a medical product business. is pretty resilient. the consumer-products is this i think is the one you want to earn in this environment and the pharma pipeline is better than a lot of their peers. valuation not demanding. this is a stock you want to own in these times. >> last but not least, tesla. steve, your take? >> i'm going to fade this one. i don't like to bet against elon musk, but i'll make the exception this time. i think he's going to be bogged down with a lot of negative headlines, as he's been with twitter, and maybe he'll say something that he'll regret same, or not. it is also negative on the economy, and a lot of times you're

of course, it was nearly a decade ago that reed hastings and richard plepler got into a scrap as to whether or not password sharing was going to be bad for the industry overall netflix's competitors have long expected advertising and we're seeing that as the service grows and saturates, as churn goes up while they try to maintain high arpu, they need to adopt a more diversified revenue profile. >> so matt, before we dig into your very exciting new book, what is your prediction for netflix and what the rest of this year looks like are they going to be able to turn around their subscriber growth, or is this going to be a tough environment for them >> it looks pretty challenging when you take a look at the company's profile, antenna has published research showing that signup churn, or the share of new subscribers who churn within 30 days is now second-worst in the industry for the past five years, they were second best at the same time, their overall blended churn for the entire subscriber base spent most of the past three and a half years sub-2 percent per month. it's now nearly 4% and what t

reed hastings said the popularity of streaming will contribute to the end of linear tv within the nextade. the prediction coming after netflix reported a loss of nearly a million subscribers during the 2nd quarter. netflix lost 200,000 subscribers in the earlier quarter, which marked its first decline in more than 10 years. >> you might notice something new on disney's streaming service this weekend. you can now stream both deadpool movies and logan on disney. plus, these are the first r rated films available on the platform. disney plus made the announcement yesterday at comic con subscribers are encouraged to update their parental controls to ensure a viewing experience and suitable for the young members of the family. a brawl between 2 families of the most magical place on earth led to a number of arrests. according to walt disney world news today, the fight happened this week outside of a concert at disney world's magic kingdom. a guest who contacted the news group says the family wearing matching tv t-shirts push to guests from the other family would stepped away to pick up her ce

netflix ceo reed hastings says we're set up very well for the next year. what do you read into that comment? since netflix reported that first step in the beginning of the year, they have put into motion and accelerated some things to stuff that they were lost a fair about before, like cracking down on password sharing and introducing advertising something they assured people that they dismissed was appropriate for netflix as a service for years. those are ways that it's going to start recouping some of the people that are watching netflix but aren't paying for netflix and also find a way to get more people into the fold if they're more price sensitive, a cheaper average rising supported tier means you don't have to pay quite as much, but you'll still be able to be a subscriber and paste netflix something they'll get some revenue off of you. my dad was a netflix subscriber from the beginning. i think it was six bucks he had dvd sent to him in the mail. now he's on streaming, thankfully. but a lot of longtime netflix customers that i've talked with have sai

relic of the roku's of the world, the top spot million dollar franchise and discovery and ceo reed hastings quite a surprise it he said microsoft incentive say google was better and better - is attack because they said that in conjunction with microsoft is the new pipe of an f platform of new advertising technology because in those giants and innovators are getting together and as always i guess a bit of a scare other technology players in the world. ashley: i would say yes very interesting development and let's take a look at tesla, the company reports after the bell, what are we expecting from tesla. susan: exciting, elon musk if he gets on the earnings so he said that he is not going to do it each and every quarter last time betty did get on the earnings call, the record profits had order for tesla and the deliveries for the bottom line this summer and i think it is washable because we already know that it delivers has handed the spring because of the covid-19 walked out in and sales are forecasted to drop and result of profit expected to be down around 7 percent and out for the first de

you have to remember that this was something that reed hastings, netflix founder, really didn't wantbers and there's tough competition with ads, you go with the herald. netflix has already said they are going to start an ad subscription -- in april. we'll get earnings on tuesday which will show another 2 million subscriber loss. stuart: really? susan: yeah. it could actually be worse if you listen to some of the wall street predictions up there. so they've been toying with also the staggered release instead of that binge mod pell that they pioneeredded. -- model that they engineered. you know what they do well, cloud, so -- [inaudible] with microsoft and a knock on google which probably is the best known when it comes to ad tech. stuart: what a shame that it's not helping microsoft. i'm prepared to say that microsoft has bottomed at 250 #. susan it's gone- sub-250 # -- stuart: i'm utterly bored by the ongoing twitter fiasco. what's the latest? susan: the way you say it just seems so elegant. rosenblatt is actually calling twitter a buy this morning, which shocked me. there's only thr

>> we'll talk after the show i think reed hastings is listening. >>> still to come, our interview withw you won't want to miss you're watching "squawk box" and this is cnbc (vo) get verizon business unlimited from the network businesses rely on. like manny. event planning with our best plan ever. (manny) yeah, that's what i do. (vo) with 5g ultra wideband in many more cities, you get up to 10 times the speed at no extra cost. get verizon business unlimited from the network businesses rely on. i was having relationship issues with my old bank. next to no interest, the fees it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. break up with bad banking. get 1.50% interest, pay no account fees, and get your paycheck up to two days early. download the sofi app and earn up to $300 when you set up direct deposit. sofi get your money right. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instan

they are down 3%, only worth $18 and netflix, you weren't here for netflix earnings but you heard reed hastings are done but you are going to stay here for the friday feedback at the end of the show. >> were not going to talk about 16-year-old shopping habits. >> if you want to make money. >> probably not. this is serious stuff actually, this one, a new elementary school in virginia will only have gender-neutral bathrooms, no more boyz ii men girls room, you are a mom and this is for elementary school, second grad sorry. i don'think it iri igh >> iare f 5 or si osixtsi gradrl, you dot to boys.th booe bin frontin oront : ua any age age, ou?ou? no, but espllwhy en ta srt hartppenrt you y don't need to be in the company of hormonal preadolescent boys. stuart: what the devil is going on in virginia, thought they had an election in the governor won promising to straighten out education. >> still a very purple state, a lot of districts pushing back against the governor to show they can, they have power and it is a wonderful distraction, this way you don't have to talk about kids being below grade lev

chairman reed hastings responding saying that the company's excitement is tempered by the less bed resultsan raised netflix target price from 230 to 24 despite the stock being done over 66% year to date. it has been a rough year for netflix and this morning we see a bounce. futures this morning are also higher on another day of earnings and we did have a change abpivot in sentiment when citigroup and goldman sachs reported last week and we will see if that has legs and stays and s&p at 5 and nasdaq higher by 32. we are hearing talk of layoffs and hiring freezes in some of the earnings reports, certainly technology has been the leadership in terms of cutting back. goldman sachs looking to make year-end job cuts as well despite the strong earnings, goldman and citi, two only banks that reported second-double beat. tesla reporting after the bell today,let talk about the broader markets and capital chairman and ceo author of the new book america in perspective, david is with us this morning. david, great to have you. >> great to be here. maria: we will get to your book america in perspective,

. >>> plus new this morning -- that's brian roberts and i saw reed hastings, not quite the sag swaggerou might think, although i guess even stranger things is working. >>> and senators on the intelligence committee urging the ftc to investigate tikk.to details after the break. "squawk box" will be right back. i was, but i need a new driver. oh. what kind? one that hits the ball better. okay... i gotcha. let's go to the hitting bay. ♪ ♪ ( golf balls and items crashing to the floor ) oops. maybe we need a new driver for the cart too. you're a funny guy. ( golf balls being hit ) oooh that's nice. that one definitely hits the ball. c'mon, get in. ehhhh, i'm good. suit yourself. oh no, no, no, no, no! ( tires screeching ) only at vanguard, you're more than just an investor you're an owner. that means that your goals are ours too. and vanguard retirement tools and advice can help you get there. that's the value of ownership. this is xfinity rewards. can help you get there. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and o