Netflix's Earnings and Ramp's Fundraise | Bloomberg Technology

Geopolitical Tensions and Market Impact

• The Nasdaq 100 is down 1% due to geopolitical concerns, particularly the retaliatory strike launched by Israel on Iran after a rocket barrage from Tehran.
• The US confirmed Israel's involvement but has not engaged in any offensive operations.
• The US remains committed to de-escalation and is not interested in further escalating the conflict.
• Markets are assessing the situation, with mega-cap names dragging down the Nasdaq 100.
• The US provides ironclad defense to Israel by intercepting drones and missiles but has drawn the line at joining offensive operations.
• Congress is preparing supplementary aid with billions for Israel, and the US is reviewing military support to Middle Eastern allies.
• The US pressures Israel to consider the civilian toll and facilitate humanitarian aid in the ongoing conflict with Hamas, especially in Rafah, where 1,000 Palestinian civilians are present.

Tech Sector Performance

• The tech sector, particularly mega-cap tech stocks in the Nasdaq 100, is underperforming the broader S&P 500 and Dow Jones Industrial Average, dragging down the overall market.
• Netflix's recent earnings report caused its shares to fall due to concerns over the company's decision to stop reporting monthly subscriber gains or losses, negative subscriber growth compared to Q1, and light guidance for Q2.
• Apple is removing Meta-owned messaging apps WhatsApp, Telegram, and Signal from its App Store in China, tightening the country's internet firewall.
• Meta unveils an upgraded version of its powerful LLAMA artificial intelligence model to compete with similar technologies from OpenAI and Google.
• Apollo Global Management and Sony consider a joint bid for Paramount Global, potentially complicating the studio's ongoing exclusive talks with Skydance Media.

Netflix's Earnings and Challenges

• Needham & Co. analyst Laura Martin discusses Netflix's earnings report, highlighting investor anxiety over the company's decision to stop reporting monthly subscriber numbers.
• Martin also mentions the impact of Netflix's password crackdown, leading to increased sign-ups and the adoption of the ad-driven tier with minimal ad loads.
• Despite challenges, Martin believes in Netflix's content slate and sees long-term growth potential.
• Netflix's content quality is generally satisfactory, but Wall Street has skepticism about its business model.
• Catering to diverse preferences for quality content poses challenges for streaming services.
• Sports content is crucial, and Netflix expands its offerings, including signing WWE for live entertainment sports.
• Netflix softens its stance on sports but won't increase its sports budget, requiring content costs to cover expenses.
• Investing in news content is also important for streaming services.

Ukraine Aid and TikTok Bills

• The House clears a procedural hurdle for the Ukraine aid and TikTok bills, with bipartisan support.
• The House plans to pass a series of bills on Saturday, including military aid for Ukraine, funding for Israel and the Indo-Pacific, and measures related to TikTok and Russian assets.
• The timing of the Senate's consideration of the bills and the potential impact on House Speaker Mike Johnson are uncertain.
• Democrats may support Johnson despite pressure from some Republicans to oppose Ukraine aid.
• The urgency of the Ukraine aid is emphasized, with the need to pass it quickly based on intelligence from Ukraine.
• Procedural requirements and the Senate's schedule may result in a working weekend for lawmakers to pass the bills.
• The Senate faces a deadline for the Foreign Surveillance Act, which could potentially lapse if unanimous consent is not obtained.
• Kailey Lein, a Bloomberg reporter, discusses upcoming events in the Senate and House, including votes on FISA and the revised TikTok bill, which allows ByteDance more time to divest.

Bitcoin and the Halving

• Bitcoin's price experienced a downward trend following news of an Israeli retaliation in Iran but has since recovered and is currently trading at $65,000 per token.
• The highly anticipated halving of Bitcoin, a planned reduction in miner rewards, is approaching. This event occurs every two years and increases mining difficulty, leading to higher costs for miners.
• Kavita Gupta, a partner at Delta Chain Block, explains the significance of the halving and its impact on the supply and demand curve for Bitcoin. She highlights the unique circumstances surrounding this halving, with a high supply but exceptionally strong demand.

Tesla Cybertruck Recall and Ramp Funding

• Tesla is recalling 3,800 Cybertrucks due to an issue with the accelerator panels that can dislodge and cause unintended acceleration. The company received two customer claims and will fix the affected vehicles free of charge. This recall also reveals the number of Cybertrucks delivered to customers, providing insight into the production status of the electric pickup truck.
• Ramp, a corporate finance automation platform, raised an additional $150 million in a Series D funding round led by Keith Rabois.
• The company experienced accelerated growth despite the challenging economic environment and increasing interest rates.
• Ramp aims to increase its customer base and transform finance management by automating tasks and leveraging AI.
• CEO Eric Lyman explained that the company's valuation reflects investor confidence in its growth potential.
• Ramp's platform offers a command control system for company finances, enabling businesses to manage payments, approvals, and accounting tasks from a single place.
• The company focuses on increasing productivity by automating tedious tasks and reducing expenses for businesses.
• Lyman believes in doing the right thing by customers and providing better service as a way to build long-lasting businesses.

Maven Ventures Fundraise and House Speaker's Job Threat

• Maven Ventures, a venture capital firm focused on emerging consumer trends, closed a sizable $60 million fund, bringing its total assets to $200 million.
• Despite challenging market conditions, Maven Ventures' strategy and market opportunity resonated with founders and limited partners, leading to the successful fundraise.
• The firm invests in technology companies driven by emerging consumer trends, such as AI and B2B applications.
• Sara believes that the number one emerging consumer trend is consumer applications of AI.
• House Speaker Johnson faces a threat to his job as a result of a motion to vacate initiated by Marjorie Taylor Greene and supported by Tom Massie and Paul Gosar.

Taylor Swift's New Album and TikTok Divest or Ban Bill

• Taylor Swift released a new album, "Tortured Poet Apartment," at midnight Eastern time on Friday, followed by a surprise announcement of a double album titled "Tortured Poet's Department Anthology" two hours later.
• The TikTok Divest or Ban Bill is being closely monitored in Washington, D.C., and the Middle East.
• The bill's progress will be updated within the next 48 hours.
• The bill's status can be followed on Apple and smartphone platforms.