CNBC Daily Open: Everyone’s looking at Netflix stocks

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open tells investors everything they need to know, no matter where they are. Do you like what you see? You can log in Here.

Consecutive winning weeks
All major U.S. indexes rose on Friday for the sixth consecutive day in a winning week. This is the longest streak this year for them S&P 500 And Dow Jones Industrial Averageboth of which reached record highs. Asia Pacific markets traded mixed on Monday. China’s CSI 300 gained around 0.5% as Beijing’s central bank further eased monetary policy.

PBOC cuts interest rates
On Monday, the People’s Bank of China cut interest rates by 25 basis points. The key one-year lending rate, which affects corporate and household loans, was cut to 3.1%. The five-year LPR, which is linked to mortgage interest rates, has been reduced to 3.6%. PBOC Governor Pan Gongsheng indicated on Friday that the bank would cut those interest rates.

View Netflix stocks
Netflix Shares rose 11% on Friday, a day after the company reported third-quarter results that beat estimates for profit, revenue and paid membership. The highlight of the report was Netflix’s ad-supported membership growth. The number of subscribers at this tier increased 35% in the quarter and accounted for 50% of new signups.

Boeing votes
The strike at Boeingwhich has so far lasted more than a month and cost Boeing an estimated $1 billion, could soon end. Boeing and its machinists’ union agreed to a new contract proposal on Saturday, the union said, that would provide for a 35% wage increase over four years. The union is scheduled to vote on the deal on Wednesday.

[PRO] Consider dividend stocks
Interest rates are falling worldwide. That means high-yield money market funds and bonds could become rarer. For investors who want to continue to secure a steady stream of income, Morgan Stanley recommends considering dividend income stocks and selects ten dividend stocks from Asia Pacific (excluding Japan) for its “Conviction List.”

There’s a YouTube series called “I Like to Watch” that two people respond to Netflix shows.

Although the series has built a devoted fanbase due to the hosts’ crazy reactions, it’s essentially a show about Netflix shows. If the shows they watched weren’t culturally relevant, instantly recognizable, or didn’t have mass appeal, no one would want to watch I Like to Watch. Netflix shows often do all of the above.

Sure, the media streaming giant exceeded earnings and revenue expectations for the third quarter. These numbers are important for investors. And Netflix wants to go beyond subscriber count as a financial metric. But perhaps it’s the subscriber numbers that most clearly demonstrate Netflix’s value.

In fact, it was likely the growth of Netflix’s ad-supported membership tier that excited investors and helped push the stock up 11% on Friday. In the third quarter, ad tier subscribers increased 35% quarter-over-quarter and accounted for 50% of sign-ups.

Acquiring new subscribers is different from increasing margins through higher pricing plans or cost reductions. This means Netflix is ​​reaching new customers it wouldn’t otherwise reach.

“It’s a good indicator that some of the growth that disappeared from the market in 2022 is coming back,” Richard Broughton, managing director of Ampere Analysis, told CNBC.

And it’s not just that more and more people are signing up for Netflix. They watch a lot of Netflix: around two hours a day, they say JPMorgan Analyst Doug Anmuth. Without advertising this would be a meaningless statistic. However, when it comes to ads, long viewing time allows Netflix to charge advertisers more, thereby increasing revenue growth.

Many of us enjoy watching Netflix series. Given the company’s dominance in the media and streaming industry, Netflix shares are also worth watching.

— CNBC’s Sean Conlon, Ryan Browne, Lisa Kailai Han and Alex Harring contributed to this report.