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Good morning! Here is the latest in trending:
Assets outlook: Ray Dalio said gold is now “the second largest reserve currency,” while bitcoin (BTC-USD) is only money “for some.”
Affordability push: President Trump signs order to restrict large institutional investors from buying single-family homes.
War of words: OpenAI’s Sam Altman fires back at Elon Musk linking ChatGPT to nine deaths, pointing to fatalities involving Tesla’s Autopilot.
Netflix (NFLX) is down more than 6% this morning after its fourth-quarter results narrowly beat expectations, while its tepid outlook underwhelmed investors. Adding to uncertainty is the ongoing bidding war for Warner Bros. Discovery (WBD).
Results recap: The streaming giant’s Q4 revenue grew 18% Y/Y, driven by membership growth, higher pricing and increased ad revenue. But given that Q4 is usually among its strongest quarters, revenue was only slightly above estimates. As for its guidance, it projected revenue rising 12%-14% in 2026, compared to 16% growth in 2025. Netflix also plans to increase spending on content by 10% this year. “In 2026, we’re focused on improving our core business with an increasing variety and quality of series and films, enhancing our product experience, and further growing our ads business,” it said.
Latest on WBD: Netflix released its results after updating its bid for Warner Bros. Discovery’s streaming and studio assets to an all-cash offer of $27.75/share. Netflix also secured more debt from banks to fund the revised offer. “We’re working really hard to close the acquisition of Warner Bros. Studios and HBO, which we see as a strategic accelerant,” Theodore Sarandos, Netflix’s co-CEO, said in an earnings call. The revised offer is aimed at fending off Paramount Skydance (PSKY), which is pursuing a hostile takeover of WBD with an offer of $30/share in cash for the entire company.
SA commentary: According to Investing Group Leader Long Player, Netflix’s growth rate is far slower than the price-earnings ratio would seem to indicate and so “it is quite possible that the declining stock price indicates a transition to reality.” But SA analyst Gary Alexander struck a more positive tone. “I believe the market is overly attuned to the risks of a growth slowdown and assuming a fresh debt load and not giving Netflix enough credit for its expansion of market share, its margin expansion, and its nascent opportunity to meaningfully grow its ads business,” he said.
Here’s the latest Seeking Alpha analysis
Super Micro Computer: My Top AI Rebound Pick For 2026
Treasury Rates May Be About To Break Out
The Gold/Silver Ratio Is Signaling ‘Wartime Behavior’
I Am Pounding The Table, I Demand Income
Nvidia: Risks Continue To Loom – A Unique Value Trap For New Investors?
What else is happening…
Trump says, ‘You’ll find out’ how far he’ll go to get Greenland.
Anthropic (ANTHRO) CEO talks potential IPO, AI race at Davos.
United (UAL) rallies after saying it’s on track for record profits.
Amazon (AMZN) gets nod to open megastore in Chicago suburb.
Ryan Cohen boosts his GameStop (GME) stake to about 9.2%.
The legal battle against sports prediction markets is heating up.
PayPal (PYPL) offers free DIY tax filing for debit card customers.
Natural gas futures skyrocket as cold snap sweeps across U.S.
RFK Jr. reportedly dismisses four members of vaccine injury panel.
Japan bond volatility could trigger up to $130B U.S. Treasury selling.
Today’s Markets
In Asia, Japan -0.4%. Hong Kong +0.4%. China +0.1%. India -0.3%.
In Europe, at midday, London -0.2%. Paris -0.4%. Frankfurt -1%.
Futures at 7:00, Dow -0.1%. S&P flat. Nasdaq -0.2%. Crude flat at $60.35. Gold +2.1% to $4,864.20. Bitcoin -2.7% to $88,665.
Ten-year Treasury Yield -1 bp to 4.29%.
On The Calendar
Companies reporting today include Johnson & Johnson (JNJ) and Kinder Morgan (KMI).
See the full earnings calendar on Seeking Alpha, as well as today’s economic calendar.
Read the full article here