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Wall Street analysts were positive on Netflix after its latest subscriber additions and largely dismissed concerns of that the monetization of paid sharing is too slow. The company added 5.9 million subscribers in the quarter in a sign that its password sharing crackdown and advertising tier is generating new subscribers. "2Q review: Password sharing supercharges subs Netflix (NFLX) reported healthy 2Q results, which reflected strong net adds of 5.9mn (vs. guidance of ~1.75mn and our 2.95mn est. ), indicating the initial rollout of password sharing has been very positive," the analyst wrote on Thursday. Wells Fargo's Steven Cahall said investors are "over-exuberant on paid sharing," though he reiterated an overweight rating on the stock.
Persons: Doug Anmuth, Anmuth, America's Jessica Reif Ehrlich, Wells Fargo's Steven Cahall, Needham's Laura Martin, NFLX, OTT, — CNBC's Michael Bloom, Alex Sherman Organizations: Netflix, " Bank, America's, DIS Locations: Wednesday's
Netflix has been on the receiving end of much of the vitriol surrounding the strike, primarily from writers who say the economics of the streaming era have eroded their working conditions and hurt their overall compensation. The company already contended with angry shareholders last month, when they voted to reject lucrative pay packages for the company’s top executives. A rosy earnings report could certainly inflame those on the picket lines. Obviously, I will ask them about the strikes, but they have other things going on, like password sharing, which has nothing to do with the strike. I just don’t know how carefully worded or guarded they will be because of the potential reaction by the guilds.”The company has already seen some benefits from the strike.
Persons: , Jessica Reif Ehrlich Organizations: Netflix, Bank of America, HBO, Brothers, ” Netflix, Consumers, Locations: WarnerMedia, United States, United Kingdom
In a sealed room behind a gantlet of armed guards and three rows of high barbed wire at the Army’s Pueblo Chemical Depot in Colorado, a team of robotic arms was busily disassembling some of the last of the United States’ vast and ghastly stockpile of chemical weapons. In went artillery shells filled with deadly mustard agent that the Army had been storing for more than 70 years. “That’s the sound of a chemical weapon dying,” said Kingston Reif, who spent years pushing for disarmament outside government and is now the deputy assistant secretary of defense for threat reduction and arms control. The depot near Pueblo destroyed its last weapon in June; the remaining handful at another depot in Kentucky will be destroyed in the next few days. And when they are gone, all of the world’s publicly declared chemical weapons will have been eliminated.
Persons: , Kingston Reif Organizations: Chemical, United, Army Locations: Colorado, United States, Pueblo, Kentucky
The S & P 500 is closing out a strong first half thanks in large part to three sectors. The broader market index is up more than 15% year to date, on track for its best first half since 2019. The bulk of those gains came from three sectors — tech, consumer discretionary and communication services — which are up more than 30% each. Given this backdrop, CNBC Pro used FactSet data to screen the top three performing sectors to find which names analysts expect to outperform in the second half. Earlier this week, KeyBanc downgraded the stock to sector weight from overweight, citing concerns at multiple of the company's divisions .
Persons: Disney, KeyBanc, Bank of America's Jessica Reif Ehrlich, Ehrlich, Goldman Sachs, Brian Lee, it's, Lee, SolarEdge, — CNBC's Michael Bloom Organizations: Nvidia, CNBC Pro, Bank of America's, Disney, SolarEdge Technologies, Caesars Entertainment, Vegas Sands, MGM Resorts Locations: Vegas
Bank of America is upbeat on shares of legacy media company Comcast as its latest quarter provided evidence that a turnaround is nearing. Bank of America analyst Jessica Reif Ehrlich highlighted the resilience of the company's media segment as a factor contributing to her upgrade. CMCSA YTD mountain Comcast could add another 18% upside for investors after gaining as much from the start of the year, according to Bank of America. "...Film is on fire, with animation exceptionally strong, which will especially benefit Peacock (where losses are peaking), but also support Theme Parks," Reif Ehrlich said. Meanwhile, Comcast's strong balance sheet remains noteworthy, Reif Ehrlich added.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNetflix shares drop after mixed earnings. Here's what the experts have to sayJim Cramer, Jessica Reif Ehrlich of Bank of America Securities, Michael Nathanson of SVB MoffettNathanson, John Blackledge of Cowen and Bill Nygren of Oakmark Funds on what they think about Netflix.
Netflix's mixed quarterly results had something for the bulls and the bears, as analysts weighed their outlook on the streaming service against a delay in the password sharing crackdown and lackluster guidance. Hodulik upgraded Netflix to buy from neutral, saying he expects growth will inflect with double-digit profit growth and rising free cash flow. What's more, he said restricting password sharing could become "meaningfully accretive" for Netflix as soon as the third quarter. Netflix turned to an ad-supported plan, and a password sharing crackdown, after reporting its first subscriber loss last year. He cited mixed subscriber growth, light guidance, and uncertainty around the delayed rollout in the password sharing crackdown.
CNBC Pro combed through the most recent quarterly research reports to find stocks with upside as the new quarter gets underway. They include: Simon Property, Spotify , Netflix , Enphase and Palo Alto Networks. Palo Alto Networks The cybersecurity company is firing on all cylinders, RBC said earlier this week in its top second-quarter picks note to clients. Hedberg believes Palo Alto has a unique opportunity to take share in a rapidly burgeoning field. ... .We view Palo Alto as well positioned to benefit from an increasingly complex security and threat landscape and as an industry leader in security."
Since returning as Disney CEO, Bob Iger has vanquished foes and dumped many of predecessor Bob Chapek's hires. But it's a supercharged Bob Iger who is really taking command. "If I'm inside Bob's head coming back, after the downfall of Bob Chapek, this is all about taking no prisoners," said Will Schutte, a high-level executive coach. Disney World is scheduled to host a major conference on gay rights in September, according to the Miami Herald. Even if he wants to be the Bob Iger of old he can't be.
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBob Iger has handled himself incredibly well since he's been back to Disney: BofA's EhrlichJessica Reif Ehrlich, senior U.S. media and entertainment analyst at BofA Securities, joins 'Squawk Box' to discuss how Ehrlich is considering Disney's stock, Disney's theme park business, and more.
Bank of America thinks media giant Paramount could see big gains ahead. She also hiked her price target on Paramount to $32 per share from $24 per share, implying upside of 54.1%. Ehrlich noted the company's list of strong assets that could aid the business if it ever puts itself up for sale. Shares of Paramount popped 5.4% in premarket trading Tuesday, adding to the company's 23% gain from the start of the year. PARA YTD mountain Bank of America sees Paramount as a buy thanks to the company's strong assets in the event of a sale of the business.
Former Morgan Stanley advisor Darryl Cohen was arrested on Thursday morning for allegedly defrauding current and former NBA players including Jrue Holiday, Chandler Parsons and Courtney Lee. Three others, including former NBA players agent Charles Briscoe, were also charged. Cohen was an advisor for Morgan Stanley from 2015 to 2021, according to his Financial Industry Regulatory Authority profile. The DOJ said in its indictment document that the alleged fraud schemes took place from roughly 2017 to 2020. "We fully cooperated with the investigation and have resolved clients' claims related to Mr. Cohen," Morgan Stanley said in a statement.
[1/3] The signage at the main gate of The Walt Disney Co. is pictured in Burbank, California, May 7, 2012. This is a win for all shareholders," a spokesperson for Peltz's Trian Fund Management said on Thursday. The decision, first reported by CNBC, came only hours after Disney reported earnings that topped Wall Street expectations and Iger outlined a corporate restructuring that addresses many of Peltz' criticisms. Disney's stock price climbed 3.6% in Thursday trading. "Bob Iger has a long, strong track record which provides confidence he will manage this transition for Disney."
Disney issued a statement applauding Peltz's decision to end a board challenge which it called a "distraction. 'FIRST PHASE' IN DISNEY'S TRANSFORMATIONFor Peltz's Trian Fund Management the board challenge appears to have paid off with an estimated 20% gain on his investment. Analysts said Peltz made a reasonable request for one board seat and to join the 12-member board himself. Peltz appeared on CNBC on Thursday to announce his proxy fight with Disney was over. "Bob Iger has a long, strong track record which provides confidence he will manage this transition for Disney."
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBofA Securities' Jessica Reif Ehrlich discusses her buy rating on DisneyJessica Reif Ehrlich, senior U.S. media and entertainment analyst at BofA Securities, joins 'Squawk on the Street' to break down her buy rating on Disney.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Bank of America's Jessica Reif EhrlichJessica Reif Ehrlich, senior U.S. media and entertainment analyst at BofA Securities, joins 'Squawk on the Street' to break down her buy rating on Disney.
The cost-saving initiatives unveiled by Disney on Wednesday give analysts another reason to remain bullish on the media giant. The commentary from analysts comes after the company on Wednesday revealed plans to cut 7,000 jobs and slash $5.5 billion in costs . "Bob Iger laid out a plan for cost cuts, content and streaming rationalization and ultimately improved profitability," said Wells Fargo's Steven Cahall in a Wednesday note to clients. "An execution story is a cleaner catalyst path, and the shares should track higher on confidence + estimates." "Bob Iger has a long, strong track record which provides confidence he will manage this transition for DIS," she said.
Disney chief Bob Iger will speak Wednesday on his first quarterly earnings call since returning as CEO. Wall Street wants to see how Disney plans to boost profitability this year and whether it will trade ESPN or Hulu. Aside from a quick visit to Disney World in January, Bob Iger has been lying very low. Media investor Ross Gerber told Insider that Iger would get back to focusing on content rather than on the distribution mechanism. Iger tweeted a photo of himself at Disney World, dressed in a relaxed green cardigan and gray slacks as he posed with cast members on January 19.
LOS ANGELES, Feb 7 (Reuters) - Walt Disney Co (DIS.N) CEO Bob Iger is expected to discuss a turnaround plan on Wednesday, when the media company delivers its first quarterly results since the return of the executive who built the modern incarnation of Disney. "This is the right place to do it. It also endorsed Iger's leadership, adding that Disney generated a shareholder return of 554% under his previous tenure as CEO. That change resulted in the departure of Kareem Daniel, head of the Disney Media and Entertainment Distribution group created by Iger's predecessor, Bob Chapek, to consolidate budgeting and distribution for the studio's content. Analysts polled by FactSet estimate Disney+ will have 163 million subscribers, down modestly from the previous quarter.
Disney has bigger problems than Ron DeSantis
  + stars: | 2023-02-07 | by ( Chris Isidore | ) edition.cnn.com   time to read: +10 min
But there are problems with spinning off ESPN, even if it would raise cash and allow Disney to trim debt. Labor painsUnionized rank-and-file workers at Disney World last week voted 96% against a contract offer from Disney that would have given them raises of at least $1 a year over the next five years. The company called the rejected wage proposal a “very strong offer.”But the last thing that Iger or Disney needs is to upset the strong demand for travel to Disney World or other park locations. Political battles in FloridaThe political culture wars are yet another headache for Iger, as Disney faces the possible loss of the powers it has to operate as a government-like entity for the land on which Disney World operates. “We are monitoring the progression of the draft legislation, which is complex given the long history of the Reedy Creek Improvement District,” said Jeff Vahle, president, Walt Disney World Resort.
There still are plenty of stock-buying opportunities as earnings reports continue to roll out, according to Bank of America analysts. CNBC Pro combed through Bank of America's recent research to find the most attractive stocks that are well-positoned ahead of their reports. Fox Buy shares of the "best positioned" company in media, analyst Jessica Reif Ehrlich said recently about Fox . "We find Grab well positioned to balance revenue growth with profitability in both its core businesses— delivery & mobility," Salgaonkar said. Thesis: 1) We find Grab well positioned to balance revenue growth with profitability in both its core businesses - delivery & mobility.
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNetflix password crackdown will create churn in early 2023, says BofA Securities' Jessica Reif EhrlichJessica Reif Ehrlich of BofA Securities, joins 'TechCheck' to discuss the future of Netflix.
Analysts at Bank of America named five stocks this week that they say every investor must own heading into 2023. CNBC Pro combed through Bank of America research looking for stocks with major upside potential. Netflix Shares of Netflix are down 46.8% this year, but analyst Jessica Reif Ehrlich is standing by the streaming giant. Kroger Kroger shares have gained nearly 2.6% this year, but the stock has a lot more room to run, according to analyst Robert Ohmes. ... We rate Solo Brands' shares Buy as we believe its unique platform strategy should enable its high growth Leisure brands."
Warner Bros. Discovery is the best value stock in the media and entertainment sector, according to Bank of America. That implies that Warner Bros. Discovery has made a tremendous amount of operational and strategic changes since April, wrote analyst Jessica Reif Ehrlich. Warner Bros.
[1/3] FILEPHOTO: Executive Chairman of the Walt Disney Company, Bob Iger arrives at the world premiere for the film 'The King's Man' at Leicester Square in London, Britain December 6, 2021. In his 15 years as Disney chief executive, Iger postponed his retirement four times, sidelining would-be successors. read more Part of his mandate, according to Disney, is to work with the board to develop a successor to lead the company. Chapek was among a shortlist of internal candidates vying for Iger's job, according to a source familiar with discussions. Another seen as a top contender was Kevin Mayer, Disney's longtime head of strategic planning who had shepherded the successful launch of Disney+, according to sources.
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