Goldman Sachs & Netflix Report Earnings!

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Well holy’s focus guys we have had two massive earnings in the past 24 hours yesterday goldman sachs reporter earnings the biggest investment bank of the world so we got to talk about that earnings and then just minutes ago netflix went ahead and reported earnings so i want to look at both these companies earnings and kind of recap those but first off here on a

Very very serious note we got to say rest in peace to the great jack bogle a massive massive name in the stock market investing community by ways his formal name’s john bogle but he went by jack bogle he was a founder of the vanguard group in the creator of the index fund okay he he passed away at age 89 yesterday like i said he created the world’s first index

Mutual fund enabling investors to achieve higher rates of return but lower costs and actively managed funds alright warren buffett what is warren buffet you guys know how much i look up to word buffett what does he have to say about jack bogle warren buffett says jack bogle did more for the individual investor than anyone he’s ever known alright this is a statement

From buffett as far as bogle goes he says if a statue is ever erected to honor the person who has done more for the american investors then hands down the choice would be jack bogle for decades jack has urged investors to invest in ultra low-cost index funds in his crusade he amassed only a teeny percentage of the wealth that is typically flowed to managers who have

Promised their investors large rewards while delivering them nothing as in our bets less and nothing or added value in his early years jack was frequently mocked and to buy that investment management industry today however he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings then otherwise would have been

Earned he is a hero to them and to me that was very i mean that’s about as strong of a compliment you can possibly get from from warren buffett like the oracle of omaha very very strong calling in there now jack bull well he did get very very rich let’s not fool ourselves he was worth around 280 million dollars which is a massive sum of money right that definitely

Puts you well well into the 1% like that’s amazing but what you got to understand is is in his position he could have learned a lot more as a hedge fund manager or something like that and also he regularly gave his salary away to charity which is a you know a pretty honorable thing to do so you know the index photo you see i’m an individual investor i pick stocks

So it’s different right but as far as like the you know the people wanting to prosper with the stock market who maybe don’t want to put in the work or don’t have the drive to kind of look in research companies and invest their own money like the next best thing after that in my opinion is an index fund and actually just sticking your money in index fund and just

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You know as the stock market goes up over time you kind of your wealth goes up over time and i think it’s a great thing and he definitely was a legend know some that think is very interesting is that’s age 31 he suffered several heart attacks so i mean imagine if he had passed away early in life he actually probably never would have even ever you know been able to

Start the index funds and whatnot so it’s pretty crazy to even think about and how much of an impact he made on the world in a very positive way so guy got to live a great life you got to become rich you got to give away tons of money to charity he got to have kids like in got to live to be 89 years old was nothing really else and ii got the respect of everybody in

The industry and you know helped out a massive amount of people out there so rest in peace to him and that’s all i got to say about that great guy so with that being said guys let’s get into this alright so first off let’s look at the stock prices of goldman sachs and netflix here so a goldman sachs moved up about 1% today but their big move was yesterday because

That’s when they reported earnings they went up over 9% yesterday netflix after-hours is down around 3% i’ve seen it down as much as 4% even down as little as 2% after hours we’ll have to see where it actually opens for trading tomorrow but as far as goldman sachs first goldman reported fourth-quarter earnings per share came in as $6 in four cents that compared to

Four dollars and 30 cents that most analysts have expected so we’re talking about a ridiculous size earnings per share beat their revenue also had a nice beat revenue came in at over 8 billion dollars versus 7.5 5 billion was expected very very impressive beats their return on equity for the year came in at 13.3% institutional client services revenue from sales

And trading activities rose 2% i actually thought the number would be up a little more i’m surprised it was only up 2% but it’s still 2% equities rose 17% to 1.6 billion while fixed income currencies and commodities revenue fell 18% all right the total in fixed income result be what most analysts had expected out there so very very strong earnings from goldman

Sachs and that’s always a positive thing when you kind of see a major investment things like that kind of blowout earnings there especially in a time period where it seems like a lot of companies are missing earnings right now or or maybe just trying to maybe come in line to have a big smash beat like that very impressive results out of goldman sachs and like i

Always say you might think wall street hates volatility in the market like the last quarter we had mass amounts of all to the october november december which is the quarters there you know that goldman sachs just reported for those were insanely volatile you might think wall street doesn’t like that wall street can still make a lot of money in very volatile markets

Like that and obviously goldman sachs did very impressive earnings and i understand like why their stock went up 9% yesterday all right now on to netflix like i said they just reported earnings minutes ago they reported earnings that beat expectations three days after the company obviously announced they’re gonna raise prices on their subscription service we covered

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That on the channel yesterday in my opinion as far as that goes netflix reported that at eight point eight million new paid streaming subscribers in the fourth quarter analyst on average have expected netflix do around 7.5 million so that’s a nice beat there on the subscriber numbers for the quarter quarter when prices will increase for new customers netflix predicts

Eight point nine million new customers that’s a big number there higher than a lilith’s expectations heading into the report analyst that expected about seven point eight so if they come in at eight point nine it’s about a 1.1 million beat there that would be insane okay netflix said in october that a subscriber forecast numbers would likely decrease because it would

Stop counting free trial memberships as new subscriptions like they used to do netflix reported net income that came in a 134 million or 30 cents a share on the sales of four point one nine million analyst on average have expected earnings to come in around twenty four cents on four point two one billion dollars of revenue there so needless to say i would say that

The earnings were pretty good okay i wouldn’t say they were great earnings because they didn’t blow away numbers or something like that but i would say they were a pretty good numbers especially on the subscriber numbers very very strong there and so when i kind of look at netflix at this point in time i’m kind of looking at a stock that you know is in a position

Where if they you keep this up they can keep adding these subscriber numbers as prices go up then it’s gonna probably turn back into a hot stock on wall street once again honestly because if they can put up super strong numbers and they’ve increased on prices wall street’s gonna get behind this in and kind of throw out valuations like they love to do with netflix

Stock and this is gonna once again turn into a very hot stock but the question is are they gonna be able to hit these type of numbers we’re talking about they’re talking about eight point nine million new subscribers at it in this upcoming quarter that would be pretty insane especially as prices increase to at eight point nine million so you know what i see if they

Actually report that but as of right now if they can hit those type of numbers like that netflix is absolutely going to turn into that hot stock again that everybody on wall street just floods money into regardless if it’s out a 150 pe or anything across the board a couple other things i thought were interesting one thing i thought was interesting is basically

One of the points i forgot to make here guys is netflix is saying that their cash burn is gonna peak this year and then it will start to go down if you haven’t been following netflix is basically the burning cash like crazy which they’re saying is obviously for their content and and obviously their content drives more and more subscribers more loyal subscribers

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Brings in new subscribers and all those type of things but if you look at this chart here this just shows you how bad the quarterly free cash flow has been and how it’s just gotten worse and worse and worse for netflix but they’re saying that they’re gonna clean that up and basically it’s gonna peak this year and then start going down so it remains to see if that

Actually happens but as of right now obviously things have been ugly as far as the cash burn goes but i just wanted to point that out they said that their main competitors are things like fortnight and things like youtube okay and i 100% agree with that like you know disney coming into place and those competitors that’s obviously more competition that’s gonna heat

Up but when i kind of look at it and you know things that take people’s time away from netflix i think obviously youtube does and i think also the other social media is out there facebook instagram video games i fortnight those type of things they take time attention away there’s only so much time attention out there and so when you got these other services battling

Against them that’s a tough competition but regardless if netflix can put up these type of numbers in that type of competitive environment like this stock is gonna get hot again it’s going to be four hundred five hundred dollars again just because you know when you have these type of numbers they’re putting up in this type of environment right now you know and you

Got the type of pricing power they do you know it’s just what wall street does they just say who cares about valuation i’m sticking money in that the big fund managers the hedge fund managers say oh who cares about valuation we’re gonna flood money on that and that’s just what is that’s why i’ve never being able to short netflix stock and i’ve never i’ve never been

Able to do it i’ve never been able to pull the trigger even buy put options it’s because i look at the stock and i’m lame you know it’s just it’s just one of those stocks that no one cares about valuation on there are very few stocks in the stock market there but it can push valuations to the side and say who cares about that netflix is one of those very few stocks

That literally people just push it to the side and say who cares look at the subscriber numbers look at how many people they’re adding on the platform they got pricing power there they’ll be able to raise prices and that’s just the way it is so we’ll have to deal with that there but needless to say good numbers out of goldman sachs in pretty good numbers out of

Netflix there so you know i’m happy about that because most companies so far have been reporting negative numbers so to have a couple of good good companies report good numbers that’s always a good thing guys so anyways i would love to know your opinion down there in that comment section as always thank you for watching and have a great day

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Goldman Sachs & Netflix Report Earnings! By Financial Education

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