Squawk on the Street SOTS 2nd Hour: Netflix Gains, Project “Stargate”, and Davos Deep Dives w/the CEOs of BNY & Williams-Sonoma 1/22/25
Jan 22, 2025
Michael Morris, a Guggenheim securities analyst known for his deep dive into Netflix and the streaming market, explains the recent surge in Netflix shares following impressive earnings and potential price increases. Meanwhile, Robin Vince, CEO of Bank of New York Mellon, sheds light on capital markets' role in global economic growth amidst record profits. The conversation also touches on President Trump's $500 billion Project 'Stargate' aimed at boosting AI infrastructure, revealing key market implications and winners in the tech space.
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Netflix Growth Potential
- Netflix added record subscribers and plans to raise prices.
- Guggenheim's Michael Morris sees further growth potential due to low global penetration and expanding ad tier.
Netflix Ad Tier Growth
- Netflix's ad tier is expected to contribute significantly to revenue growth.
- It could exceed Hulu's $3 billion annual ad revenue over time.
Risks and Opportunities in Streaming
- While positive on Netflix, Morris acknowledges potential risks.
- He suggests other streaming services may also benefit from Netflix's success.