After the bell. Well tell you what to expect and live analysis when the earnings are released. Meantime, the Republican National Convention Officially under way in cleveland right now. We are live on the ground there with the latest developments. Plus, mr. Trump senior trade adviser on why he believes free trade failed the United States. Remember this one . We have new developments in the story about a Hedge Fund Portfolio manager fired after throwing a big hamptons party. The Hedge Fund Manager is speaking out saying theres a lot more to the story and hell tell us what it is after the bell today. All right. Japans softbank buying uk based apple supplier arm holdings. David farber, david, has the story for us right now. I do. Thats right. Arm. I want to hear about the Hedge Fund Guy and ill wait for that. But as for this deal, of course, many people actually not expected it. They werent waiting for a deal of this type. Arm holdings, bill and kelly, not necessarily thought of as a conso
Company slashing its subscriber Growth Guidance for the next quarter. The question now, is netflix any longer a growth stock . Dan, lets start with you. Well, here is the problem. Its International Subscriptions. That was the thing that took it down last quarter when they reported in midapril. They guided down from this quarter from 3. 5 net subscribers to 2 million. They just missed that number. They came in at 1. 5 for International Subs in the q2 and then guided the q3 below expectations. For a stock that trades at this valuation, you need to see that ramp internationally. Theres been no shortage of questions about competition. Maybe thats coming into play. We know that they have that price increase here domestically for longtime subs. A lot of headwinds. Youre talking about the price increase. Reed hastings has been on after the result talking about this ungrandfather. Its basically the price benefit or the inducement you had to get and sign up for netflix is coming off and coming
A barrel. Up a gain three quarters of one percent. Our road map today starts with netflix. Shares down big this morning thanks to weak guidance. What Ceo Reed Hastings had to say about the companys earnings. Goldman sachs ceo blaming the challenging operator environment for less than stellar earnings. What you need to know from that report coming up. Also dig into earnings from dow components Johnson Johnson and United Health care. Lets 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, lets 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 a
Thank you for joining us on squawk alley. John is at merge in miami, flori florida, and we will get to him later, but at post 9, kelly evans. Good morning. And joining us from out west is jason calakanas who is an invester and we have a lot going on in the market, and dow and s p 500 nasdaq posting the intraday highs today, and the dow is holding e steady above 18,000, and russell 2,000, and the dow transports are out of correction territory, but start with the netflix today, jason, because the shares have been hit hard when the company gave weaker than expected subscriber guidance for the coming quarters and 2 million additions rather than the 3 million that the investors were expecting, and also, there was a offering of prime video stand alone which was talked about on the Conference Call from reed hastings, and we have that. So take a listen. Hulu is doing great work, and amazon, and hbo and showtime, and so many competitors, and everybody is working hard to build the best content.
With the vicks towards 23 or so. You see everything here, teshg financi financial, consumer discretionary. Youll notice energy is not doing as bad. Energy was doing significantly less bad just a short while ago but thats changed a little bit as oil has started to move into negative territory. Show the xle, which is the energy etf, the Largest Energy etf out there. Thats been moving down in the last 15 or 20 minutes. Thats why the markets have taken another leg to the downside. Its the Energy Stocks that are down. They previously were somewhat supportive. Elsewhere, theyre having a down day, particularly weakness in automative stocks, volkswagen, bmw, daimler. They all have 10 to 20 of their revenues over in china. Ford and gm do not. They have very small percentages of their revenues in china. 4 to 5 for ford. Theyre not down nearly as much as their counterparts over in europe. As for the financials, this is one of those days it really doesnt matter whether youre dealing with a Big Mon