Netflix, as the richest is the streaming world, still expected to get richer than many of its competitors, academy i think we have to put this Earnings Report into context at the same time, john, i wonder if net flix is a pretender of what is to come it has been one of the great work from home, stay at home plays, and we have earnings coming up. Really this week you have seen some names take a breather zoom is down more than 10 this week these have been some of the really outstanding performer this is year and theyre taking a leg down so as with netflix it showed gains came earlier this year. Could they really keep up that momentum i think investors are taking stock of that right now. That is a fair point, but i think how much of the trends that we have seen are going to stick . Zoom has given up some, but it is not a ton i know that i have changed so much of my work and productivity patterns around some of the trends, i dont think that im going to switch back on a lot of this stuff i think zoom is a fine example and i know that well talk more about that this hour youre right, john, and its not just the choices that youre making, but the choices that our bosses are making. Im thinking of some announcement this is week of Major Companies saying our workers are not coming back for the duration of the year, right . That is going to have an impact on how much of these habits stick. Yes, these trends may be here to stay, but these valuations are getting frothy and going back to zoom perhaps the next question is where is the business going. Does it go beyond Video Conferencing this week zoom saying theyre getting into the hardware game is that a game changer for this company . So i just think the valuations will be questioned i agree. Is here to stay, some of the trends, but now they have to justify them i saw that little Video Conferencing machine and they had widespread cameras im still thinking about it for now, from the Video Conferencing, so content, lets get to julia with a closer look at netflixs quarter they are down about 5 this morning after they reported the biggest earnings miss and they forecasted the addition of 2. 5 million in the Third Quarter that is the weakest forecast in four years, but they stressed their confidence over the next decade particularly when it comes to international growth. He also praised ability to get production restarted around the world saying they will have enough continent. We want so many hits that you can go hit to hit to hit and never have to think about any of the other services we want to be like your primary, your best friend, the one you turn to. Of course occasionally there is ham hamilton and youll go somewhere else for a film, but we want to just always please you and a content chief is being promoted along with hastings this is a true sign of net flix netflix being a catalyst saying they see subdued subscriber growth and in the first half of the year and investor interest in netflix as a stay at home winner we counted four analysts lowering price targets and five raising their price targets. This is where analysts are still largely bullish. What should we make of this move to make ted coceo and Reid Hastings saying he will stick around for another decade. If he goes to executive chairman, does it really matter who is ceo look, last night he did say he was going to stick around for a decade i think that was because sometimes when you bring on a coc coceo and founder, had could be that he was planning a an exit. I think he has a huge amount of power and a huge amount of power in hollywood he is the one deciding what the content is on this platform. It is no longer a dvd by mail company. It is creating and licensing original content now as both of these men think about what future of the Company Looks like it does make sense to elevate someone from a contact background it is really just a sign of the times. I love that the company talked about competition, but it was interesting who they pulled out. What did that tell you about who they are looking a in the landscape of streaming giants right now. I was truck by name checking tick took tiktok in particular they say we may be dominant, but look, there are still opportunities for start ups to grow and gain market share and change the way that people consume content. I think tiktok is considered a new format in the way that people are sharing and consuming content. And to your question about qu quibbi netflix is more for your living room, but it just has not taken off the way that many others hoped. And not drawing the attention of hastings, at least not today. Even if the Albanian Army cant pay attention, but we cant quit them out. Certainly not all right, lets drill down on more of the stay at home stock thats are continuing to get a lot of investor attention. Joining us now, founder and managing partner at full cycle happy friday morning, good to see you. Good morning. Good to see you again, thank you for having me. One of your top picks is goom and zoom we were just talking about hoch of the ascendance is hype where do you think their value really lies Going Forward . We all know that zoom changed the world, right we have every ceo of every company in the world has is shifting their travel budget because now we know we can stay home and conduct our business and i dont see that changing any time soon. We know that we can advance most tran tra transactions without face to face interactions. I think they will do a good job building a mote by creating a closed eco system. We all know how important these communications will be in life. Where do you view their competitive advantaitive advant but they captured some kind of lightning in a bottle. How will that translate into hardware so yes, we had Video Conferencing for a long time skype dropped the ball they made it seamless. And as long as they stay ahead of the curve and tighten the breadth of this eco system, they will stay in it. And im sure they will just raise the white flag and make an offering so you know theyre here to stay these valuations, you think there could be interest for a purchase everyone is playing with f funny money at this point. I dont know if youre young enough or old enough to have been there around the first dot com crash, the traders were all first time Retail Investors and that is happening again. And acquisitions are happening all of the time. It is basically free funny money. I was watching it up close reporting in Silicon Valley at the end of 99 and the beginning of 2000. Tell me how you see the trends unfolding in this pandemic as we hope to come out of it and its impact on different classes of stocks just in the last hour we were talking to the chief operating officer of shopify it is a company that turned the model on its head on a way that ebay hoped to long ago but did not succeed in where do you see opportunity and innovation pushing forward so interesting, im not going to talk about the tough we talk about like zoom and the airline industries, but i thought i would point out a few we, sometn like athleisure companies. We have all seen people running around, clunking around our calls, so business afire has changed. So like the group that owns lane bryant and ann taylor. They will have a hard time with changing 76 of our country has gained up to 16 pounds once and were still scared to go to the gym and were not going to go to the gym, but what we will do when we convert part of our home into a gym is jenny craig, they will all see a resurgence when you see two thirds of the nation trying to lose weight. It is making the stocks look small. Go ahead and finish your thought, blue apron, that would be quite a come back at this point. They were at the brink, and the covid situation has brought them back and they have a lot of cash on reserves and a chance to pivot. And you know i think that if they capitalize on the weight lost tress that is going to come, they will do a great job if they associate themselves with it. Always looking into the future thank you for having me when we come back, well talk about what is next for airlines in the midst of this stock slump, and a pretty tough couple weeks. Some of the big earnings next week from united, american, and sohwt ene meac introducing stocks by the slice from fidelity. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Stocks by the slice from fidelity. Save without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. United, american, and southwest all set to report next week as the stocks look to rebound in 2020. Good morning good morning. So is there any good news on the horizon for these stocks we watched the moves that united is trying to make with the pilots union trying to get flexibility, is that hope snfl. Yes it has been so much bad news for the past four or five months that just having these little wins is Pretty Amazing to me at this point but yeah, you know, you dont want to furlough people if you dont have to, obviously, but the industry is going to be about half the side at the end of this year than it was at the beginning of the year so you have to size the airline correctly. But it takes about a year to bring a pilot back from furlough so to the extent that you can bring the pilots that are turning 65, if you can keep the younger people on board, it is always lastin , firstout. And that, obviously, has with it a whole set of issues. And since we have Something Like 27,000 pilots, there seems to be some flexibility to work with the unions to avoid furloughis for the next few months. You have a buy on American Airlines and the sense of what i am hearing from them is lets fly lets get out there again. What you describe as turbulent conditions in the industry, why do you think that strategy will bear fru bare fruit what do you think is the range of tacts there is a few things in there. I think people really want to travel i think their governments are not letting them you see that here in the new york area. Stuff is still closed. And in 22 states now you have to quarantine when you get here for 14 days. That makes it not a lot of fun i think that people want to go places at this point and of course we have the whole issue of people who are not working and their personal Balance Sheet is being destroyed i view that as a separate issue i think there are people now who would travel if they could and i think it is very safe to travel on airplanes. That debate comes up every morning i feel like with you and jim kracramer the air on a plane is going vertical and airlines are doing everything they can to ensure that safety. The reason that we like american is that it is our contrarian idea they dont have to pay 100 of the debt back in the next decade, they only have to pay half of it back. Maybe theyre in a little better position than people think and to theirpoint lets fly, they have not cu capacity and they restructured their hub so they preserve connecting traffic and the local traffic. They scaled down l. A. , theyre scaling down new york. You saw the deal they announced yesterday with jet blue that helped both airlines become more relevant in the northeast. So i think there is some there is sort of some hope as you know we were forecasting 400,000 per day. So it is clearly a little better than i expected welcome but were still, to your point, were still years away from 2018 levels i wonder, is it a signal theyll get more going to try to hear about . We talked about them being smaller at the end of the year and you still want to win the recovery, and that would include not keeping as many people on board. They are more relevant in the jork wear where they lost area in the last decade to delta and jet blue especially in the National Markets where american was very strong out of jfk and they really gave that up and there are a lot of reasons why that happened. But i think the relevance that they can bring to both the leisure and the Corporate Customer over and through that agreement is very helpful. I think the times could have been better just from the per perspective that two nights ago they said they would have to send notices to 15,000 people. But i think from a creativity perspective they will have to get creative if they want to attract passengers, even now, primarily because if you dont get revenue, it is a short business 06 of all tickets are booked within 90 days of travel and now people are waiting longer and longer to book because they dont want to get stuck in a situation where theyre having to quarantine or where they get shut down or stranded. These are all of the issues that i feel like governments have to Work Together to just, you know, open the air space open their countries, and maybe masks have to be a must. And you know lets just get on with our lives and learn to live with this horrible it has. Construction is recoving, but retail and travel are facing longer term challenges is the calculus that further government aide, is that a [ laughter ] lift or not. Do you mean the 30 billion beyond the second loan yes so you mean from october 1st to march 31st, right yes, yes. I dont know how to think about that any more. My view has been that there is not a lot of appetite in washington for more money for airlines but it is clear the industry is not going to recover between now and the end of september and youre looking at we said the industry started with hundreds of thousands of people. That perceives the furloughs and the voluntary retirement when you think about 100,000 people without a job in pocket, right ahead of an election, you can see where the unions are being very aggressive with congress and asking for more money, and you can see where the administration might be willing to maybe not all of the way to march, but certainly until the end of the year or things get a little better. We need a vaccine, a treatment, or something to get our lives back, right . Believe me, that would answer a lot of questions well see what next week brings, it is always good to see you have a good weekend. Thank you, have a good weekend. As we go to break, lets look at the worst stocks on the dow for the week including microsoft down 5 . Amazon not part of the dow well be right back, stay with us on the awardwinning ww app, you can take a personal assessment to get a customized plan. The assessment takes into account the things that matter to you the most. Ive lost 101 pounds. Its incredible. Summers on us. Get your first three months free hurry, offer ends july 20th. Woi felt completely helpless. Hed online. Three months free my entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. European markets are set to close in junction a moment john, it looks like were mixed across europe right now but still higher on the week for european equities as leaders meet for another round of stimulus talks in bustrussels on the rescue program that is still facing push back from four european states. Often referred to as the frugal four stocks in focus, transportation after a Earnings Report showing they will post a smaller an expected loss. That stock is higher it was up 4 at the highs of the day. Other auto related names are trading up as well british air ways remember the eu did extend its travel ban carl, back to you. Thank you the s p up here a little bit, lets get a news update. In a court hearing, not guilty pleas from the three white men accused in the murder of ahmad arbery. In texas, new cases are up nearly 1,000 percent the sevenday average up nearly 21 . Officials and funeral homeowners are bringing in extra body bags and refrigerated trucks in case the situation increases. In florida, another hot spot, the latest daily numbers just released showing more than 11,000 new cases and 1130 deaths that is the update for this hour after the break well talk with a former netflix executive. That stock down more than 6 this morning were back in two minutes. Welcome back, shares are down on netflix. Joining us now to talk through the results is the former netflix vp of original content thank you for being here happy to talk about streaming. And changes at netflix. You worked with ted, the incoming cocoo. He is credited with turning netflix into a power player. Why give him that promotion right now and will it change anything for the near term sure, i think reed spoke to it yesterday that he and ted had been partners for the last 20 years and obviously as you just said content is central to the success of netflix i think it makes sense to keep the leadership in place. It makes sense and great congratulations for hem for continuing to lead netflix into the future he is going to stay for at least awhile, was there perhaps interest did they have to keep him there because he has been such a crucial part of his transformation i dont know. I would say why not now . I think it makes good sense. Often when i seed media reports and confrontations, they mistake him for the ceo. I think consumers and the general public think of net flix as a content company anyway, but why not now. I this it makes since to continue to articulate the lip for the future has disney plus impressed you . Have you been surprised at the momentum they have been able to spark and do you think the difficulties other police stations places like parks might distract you i think theyre having some challenging times, they own espn and it is challenging to run a Sports Network when there are no sports being played. So theyre having challenging but absolutely i have been impressed. I think the response from consumers reinforce why they went into a direct to consumer model showing that brand resonates. People love pixar and marvel i think releasing hamilton was brilliant. Im sure well also see the movie being made for disney plus in a different take on it. I think that cre