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Well howdy partners we got some breaking news within the past couple hours holy smoke as they st. no joka qualcomm stock is absolutely going insane of 23% here today it almost all those gains came in the past hour of trading it’s up another five and a half percent after hours this is an unbelievable unprecedented move for qualcomm stock guys we’re going to talk
About that one and then netflix stock is hardly moving after hours they just came out with their earnings and i want to basically tell you guys what they reported for earnings and then we’re gonna get into why the stock is not moving which is baffling people because netflix stock usually moves huge on earnings and to have this stock not moving at all people are like
What is going on what is going on okay first off in regards to qualcomm some massive goliath news came out right before the market closed here today okay appling qualcomm have settled their royalty dispute the companies announced in a press release settlement includes a payment from apple to qualcomm as well as a chipset supply agreement suggesting that apple will
Buy qualcomm chips for future iphones the companies did not say how much the payment will be qualcomm stock obviously rose more than 20 percent boosting its market cap around fifteen billion dollars okay it’s the biggest day for qualcomm since 1999 back in the tech bubble days okay now apple didn’t move much on this news however intel which is a qualcomm competitor
Did fall on the day okay this is massive massive news for qualcomm guys this came out of nowhere a lot of people were not expecting this and especially on this scale there are three huge reasons why this is massive news for qualcomm for a good thing okay if number one this is the massive legal costs basically an for qualcomm qualcomm was having to spend ridiculous
Amounts of resources money okay to kind of like like file all these lawsuits and you know they’re suing each other back and forth this basically ends for qualcomm now they were spending you know hundreds of millions of dollars on legal costs never mind that the management’s attention a lot of the executive team was on on this whole situation with them going back and
Forth in the courts with apple that ends today this is just great great news for qualcomm right there reason number two is no payments had to be made from qualcomm to apple actually it’s vice-versa apples actually gonna make a payment we don’t know how big to qualcomm it could be a few hundred million could be a few billion dollars we don’t know what the payment
Is there from apple to qualcomm but needless to say apple’s paying qualcomm and not vice versa because if it was a vice-versa situation qualcomm had to pay apple that could have gotten really really really ugly so that is great great news for qualcomm and the third reason is by far the biggest reason of all these okay they’re getting apple back as a customer again
This is as big of news as you can possibly have as a semiconductor company if you’re talking about your big player in the smartphone space and tablets and you sell electronics into all these players and let’s say apples not the company you can do business with you’re just missing a massive amount of the market okay apples a company that sells a couple hundred million
Iphones per year in in those iphones they usually use the highest of the highest end chips meaning that you can usually charge very high dollar amounts to apple so if you lose out on apple as being one of your customers and you’re a big player like qualcomm is in mobile phones and just mobile devices in general you’re just losing out on a huge opportunity there so
There’s great news for qualcomm now that they can be back in one of the biggest electronics makers literally in the entire world and this makes me think maybe there was something there that that qualcomm had specifically around 5g and maybe intel just couldn’t get it done and apple was like dude we’re screwed in this situation we have to hit 5g like like they’re
You know apples expected to come out with it you know a 5g iphone in fall of 2020 and if they miss that and they have to push back in another year they’re gonna you know miss out on a ton of sales they’re you know you could even have customers switching over to android cuz i can guarantee you a massive amount of android phones will actually be 5g over the next 12
Months and if apple’s not it doesn’t hit the market firm you know two years after that that could get really ugly for apple so in my opinion it qualcomm ended up being in a position of strength here probably because you know intel just probably failed with 5g my my beliefs i have no you know proof to back up that’s just what i’m reading through the teachers if it
Was one of those things if apple was in a position where intel was looking great for pi g and you know the next five g phones and whatnot i’m thinking apple would’ve been as desperate to make this move because it definitely looks like apples more desperate than qualcomm in this particular situation so we’ll see what happens there but needless to say like a smash
Homerun you know for qualcomm they’re great news okay now let’s talk about the really big news which is netflix and netflix talks so netflix earnings came out here after the bell netflix posted its first quarter earnings on tuesday and beat wall street estimates and company guidance for revenue earnings per share in global paid net subscriber additions during the
Period but it also turned in weaker than expected guidance for subscriber growth in the second quarter netflix added nine point six million paid subscribers globally its biggest quarterly haul ever bringing it to nearly a hundred and forty nine million members worldwide in the second quarter it said it expects to have five million paid subscribers about 1 million
Less than wall street estimated so right off the bat there that’s obviously a very negative number they’re you know legal from nine point five to maybe only we hit five but it could be netflix maybe sandbagging numbers so then they come out next quarter and they do hit six million or maybe even seven million and it’s like whoa we-we-we we blew numbers away and
Whatnot it could be netflix and begging them there but needless to say like regardless it seems like it’ll be not as good of a quarter this upcoming quarter as it was this past quarter okay in terms of all the numbers here q1 revenue came in at four point five two billion dollars versus wall street estimates of four point five one so a very very slight beat there
Okay netflix had forecast at four point four nine so very very slight beat on revenue q1 earnings per share on a gaap basis came in at seventy six cents versus wall street estimates of fifty eight cents and netflix was expecting about fifty six so nice beat there on the gap earnings per share q1 total paid subscriber growth paid net additions came at nine point six
Million versus wall street was expecting about eight point nine for netflix was expecting about eight point nine so a very nice beat by netflix there 1.74 million new subscribers in the us versus wall street was expecting one point six seven point eight six million new subscribers internationally that’s a huge number there netflix was expecting about seven point
Three wall street as well however the upcoming quarters where the numbers were a bit weak okay so five million was expected when wall street was expecting over six million net ads for this next upcoming quarter okay three hundred thousand expected in the us by netflix wall street was expecting over six hundred thousand new ads four point seven million internationally
Wall street was expecting about five point four so needless to say at least on the you know good front netflix you know beat revenue they be dps and they beat this past quarters you know subscriber editions but next quarter they’re they’re you know expecting to come way under what wall street was expected but once again let’s go back to this stock price here it is
Hardly moving after-hours we’re looking at a stock price here that is down point eight percent and this is mind blowing people people are like why is a stock hardly moving this is netflix stock is just reward earnings this stock should be moving huge you know a lot of folks that were playing options we’re expecting the stock to move at least seven eight percent on
This earnings and then we have a move of less of one percent people are like blown away let’s get it into that now so here’s why netflix stock is hardly moving here after the bell the fact is if you’re looking at the bearish case around netflix and you’re looking at the bullish case we’re gonna see something here okay the bearish case are basically two reasons
Why you’d be very very bearish on netflix stock there are two fundamental reasons and everything else is just little stuff okay what is the competition is coming for netflix okay but it hasn’t come yet okay disney an app 11-ounce their streaming services but those don’t actually hit the market until the fall time meaning basically if you’re looking at it from a
Competitive standpoint on a negative you know negative front around netflix obviously you’re looking at this and you’re like well then no one’s canceling their netflix yet okay to go and sign up for apple or to go sign up for disney plus or anything like that because if they’re literally not even available so if somebody’s enjoying netflix they’re not gonna cancel
Right now if anything they might cancel down the road and they might say hey let me try this apple service hey let me try the disney service okay but that’s not going to be totally staff all time if not wintertime okay so that’s still a long time away and then also the bearish cases around this company being overvalued which why did i spell overvalued with a you
It should be with an o there that’s a typical jerry thing there okay but needless to say if the company was overvalued yesterday and you feel like that today you still feel the same way nothing has changed you know based upon these earnings if you’re on the bear side about feeling that the company is overvalued if you look at the the trailing p/e if you look at
The 4p on this company and then you look at the competition coming most folks are gonna feel in the parricide everything is still the same essentially but on the bullish case okay there you know a lot of people that are still bullish on netflix thing i say competition is not gonna have a negative effect on on netflix people are still going to you know stays you
Know stay signed up for netflix though you know apple coming in the game disney they’re not gonna have much of a negative effect on netflix at all people are gonna cancel and you know netflix is going to keep growing and they’re gonna say hey the growth piece is gonna continue well here’s the problem if you’re on the bullish side and y-you can’t be super bullish
And why you don’t see the stock up 10 or 12 percent after-hours is yeah in the past quarter we’re phenomenal numbers those are really really strong numbers that were they beat across the board but the next quarter netflix is obviously not you know is not expecting nearly as much 5 million new subscriptions versus you know 6 plus million was expected by wall street
That’s a you know a 20 plus percent difference there that’s a massive difference so if you’re on the bullish side there’s nothing that came out in these earnings that you can say oh my gosh this is great because the competition still doesn’t come so you’re not a hundred percent sure yet if netflix is not going to lose some customers to these other services and
Then yeah the growth piece in the past quarter was true the next quarter it’s not looking so good and that in my opinion is why the stock is not moving after hours i was thinking about possibly playing it for you know an options play and i decided no you know i knew the earnings were coming out today i was like maybe maybe i’ll play it as an options play maybe the
Stock will move huge and then the more i got to think about it the more i was just like there’s nothing here on the better side or bullish side that’s really going to make the stock move massively after hours or tomorrow or whatever just for the mere fact that you we’re still going to see what happens with this competition game okay and that has not come yet that
Is not what we now if netflix is reporting great numbers all throughout next year then bulls are gonna get really excited okay but if next year we start seeing some weakness because of the new apple service and disney service and other competitors come in then all of a sudden the bear case is gonna start getting roared up but we kind of got wait you know at least
A few more quarters before we’ll start to see any numbers really be affected you know from the bear aside on any of these competitive services because they just haven’t even come out yet they’re just been announced but they haven’t actually been in the market yeah that’s still you know six plus months away so anyways let me know your opinion on qualcomm or netflix
In that comment section i want to hear your guy’s opinion on those stocks thank you for watching and have a great day
Transcribed from video
Breaking News! Netflix Reports Earnings! Qualcomm settles with Apple! By Financial Education
