🎥🍿 Netflix Massively Beats Earnings!

Oct 20, 2024

Happy Sunday,

I’m currently flying back from Washington D.C. from a wedding! I got here Friday evening and now I’m flying out less than 48 hours later. The wedding was beautiful and my friend Brian even had bubble tea as an after-dinner dessert. Can you say… the best?

In YouTube news, we have a great video tomorrow on one of the biggest wastes of money everyone spends on at some point in their life, and if you can avoid this expense at all times, your net worth will thank you. Keep your eyes peeled tomorrow for that video on your home feed.

With two weeks left until the election, I’m seeing mixed reports on who’s projected to win - it seems like the race is the tight, and whoever wins will impact policy for not only the US, but also our economy in the coming months/years. I’ll be sure to keep you guys updated on whatever that may be when the time comes.

I hope you’re having a great Sunday. Here’s a photo of me eating Calamari with some people you may recognize if you watch finance YouTube a lot :)

- Humphrey

Market Report

AI Energy Demand From Big Tech Sparks Nuclear Power Revival

The tech industry is experiencing a significant shift towards nuclear energy, with major companies like Amazon, Microsoft, Google, and Oracle investing in nuclear projects to meet the surging energy demands of their data centers.
- This trend is driven by the rapid growth in generative AI, which has made the US the fastest-growing market for data centers. McKinsey forecasts that demand will more than triple by 2030, reaching 80 gigawatts.
The increased interest in nuclear energy has led to soaring stock prices for nuclear-energy companies, briefly making utilities the best-performing sector of the S&P 500 Index this year.
Rather than investing in large nuclear power plants, these tech giants are focusing on small modular reactors (SMRs).
- SMRs offer advantages such as requiring less space, lower costs, and the ability to be deployed incrementally to meet rising electricity demand.
Nuclear power's appeal lies in its reliability and scale, providing clean energy around the clock and offering the gigawatts of power needed for AI data centers while fulfilling companies' green energy commitments.

US Housing Starts Ease on Decline in Multifamily Construction

US housing starts in September showed a slight decline of 0.5% to an annualized rate of 1.35 million, primarily due to a 9.4% drop in multifamily projects.
- However, single-family home construction saw a 2.7% increase to an annualized 1.03 million, the highest in five months.
- Building permits, an indicator of future construction, fell 2.9% overall, but single-family home permit applications rose slightly by 0.3%.
Despite the uptick in single-family construction, the pace remains below the levels seen in late 2021 and early 2022 when mortgage rates were much lower.
Home construction is expected to have a significant negative impact on third-quarter GDP. While there are regional variations in single-family home starts, with increases in the South and Northeast, experts suggest that a sustained housing recovery will depend on further reductions in mortgage rates.

Netflix Massively Beats Earnings As New Subscribers Top 5 Million

Netflix delivered another strong quarter, surpassing Wall Street expectations on all major financial metrics. The streaming giant added over 5 million new subscribers in the third quarter, bringing its total subscriber count to 282.7 million.
This growth was largely attributed to the company's crackdown on password sharing and the introduction of a lower-priced ad-supported tier, led to a 15% increase in sales to $9.83 billion.
- Looking ahead, Netflix projects sales growth of 11% to 13% for next year, potentially reaching $44 billion.
- The company plans to focus on improving its advertising offering and investing in live programming, including sports and wrestling events.
While some analysts believe the boost from the password crackdown may be temporary, Netflix's leadership remains confident in the company's growth trajectory, citing a strong content slate for the coming years.