will power is an tlois with robert w. bairdnow. >> have you a downgrade on netflix, but at the same time you have $115 price target, which is nearly 10%. how are you going to be looking at this earnings report and when the stock goes up? >> i tell you, good morning, first of all. buckle your seat belts, right? netflix, it's either up or down 10%. >> i really think there were a lot of expectations already baked into the stock. particularly with regard to international growth. i think international will look strong. we think a lot of that is already expected. we do have some concerns on the u.s. domestic growth. we think that could be slightly light. that does make us a bit more cautious. at the end of the day we think a 110 to $120 is probably the right value relationship here. >> how much does it matter that netflix announced this complete global expansion at ces a couple of weeks ago? is there concern that that might be to counter balance what's happening domestically with subs? >> to its credit announcing ces put it at the ea

joining us is will power from robert w. baird, he downgraded the stock this morning. new year. good to see you again. >> happy new year. thanks for having me. >> not such a good year for the stock as far as you're concerned. you think u.s. subs might disappoint again. why? >> that's probably a piece of the downgrade. the bigger downgrade is a balance/risk reward. we do a quarterly u.s. subscriber survey. based on our survey of 3,000 consumers it suggested flattish penetration levels, normally we would expect an uptake from q3 to q4. so that makes us a bit more cautious. >> and you don't believe international is going to be able to make up for that? >> i think international will be strong but a lot of that is baked into the stock. sentiment is the strongest we can remember based on investor conversations. a lot of expectations were built into the stock. they're high expectations for international. as you look at international, their low 20 million subscribers today. we think that number can get to 100 million in 2020, that's big growth. but a lot of that is expected at

that stock, which is one of the best performers on the s&p 500 last year, has been downgraded by robert w bairdokerage reducing the price target to $115 all the way down to 128. this, as a russian newspaper announces netflix is coming to russia later this month as part of a larger global expansion. we're watching yahoo! as marissa meyer heads into the new year, 3.4% in the pre market along with that broader selloff. shareholders continuing to put that pressure on the board after the company did a total 180 going back on the plan to spin off the alibaba stakes and 2016 could be a hard year for yahoo! sandra. >> all right, thank you very much, jo. we'll be watching for it, in addition to news out of china. stocks are reacting to the news that saudi arabia and bahrain are cutting ties with iran. joining us now on a fox business exclusive, retired united states marine corps general and head of central command, general anthony zinni, an honor to have you this morning, but first, we'd love to get your reaction to this news. >> good morning, sandra. i think the news is really concerni concerning, if t