Daily Updates: Triumph in Streaming World
Here's the rundown of this week's market nuggets and some hot takes:
1. Netflix Takes Off 📈
Netflix (NFLX 📈9.65%) soared 14% in after-hours trading on Tuesday, breaking records with a staggering 19 million new subscribers in the quarter. This glorious success saw the streaming giant announce a $15 billion buyback and predict profits of up to $44.5 billion by 2025. Not too shabby!
Some heads turned towards the WWE audience, as Netflix revealed its new collaboration with TKO 🚬(-0.73%). While the exact numbers didn't become a household name, Netflix confirmed that the majority of new subs didn't join for live events.
2. Airlines Take Flight ✈️
S&P 5006,049 (+0.88%)
The travel industry is feeling the fresh breeze of optimism, as airlines like United Airlines (UAL 📈-2.03%) keep winning at the earnings game. Confident in their future, the aviation giants have been knocking it out of the park withrouter financial performance. With healthy Q4 earnings under their belts, companies like Amexican Airlines (AAL 📈-0.56%) and Delta Airlines (DAL 📈-0.53%) are eager to show off similarly impressive numbers.
3. Lucid AI Dreams 💡
Nasdaq19,757 (+0.64%)
With tech corporations keen to make their mark in the AI world, Oracle (ORCL 📈6.93%) joined the earthquaking $500 billion Stargate project, striving to develop smarter AI infrastructure. The powerful team backing this effort includes tech titans like Microsoft (MSFT 📈4.06%), Nvidia (NVDA 📈4.23%), and Arm (ARM 📈15.61%).
The Microsoft and OpenAI partnership allowed for the expansion of OpenAI's infrastructure, with Google (GOOG 📈0.13%) also jumping on board by investing an additional $1 billion into AI startup Anthropic.
Dow44,026 (+1.24%)
4. Big Pharma's 'Big One' 💊
Johnson & Johnson (JNJ 📈-2.16%) takes the stage this week to report its Q4 earnings, promising a big finish to an okay year. While analysts remain hopeful for a standout Q4, they're expecting a drop in total revenue compared to 2024.
Bitcoin$106,547 (+3.83%)
Johnson & Johnson partnered with neuroscience drug developer Intra-Cellular Therapies (ITCI 📈0.48%) to acquire Caplyta, a medication for treating bipolar depression. On the flip side, J&J is still on the hunt for a resolution to its talc cancer settlement case, aiming for a wrap-up early this year.
5. Foolish Frenzy 🤖
Which stocks do you think will outshine Netflix in 2025, and why? Why not kick off a friendly debate with your friends and family, or-->Join the conversation at Fool.com!
Bonus Insights
In the coming years, travel and hospitality could see a stunning revival. Here are a few contenders poised to ride the wave of renewed demand:
- Airbnb (ABNB): As travel picks up the pace, Airbnb will capitalize on the surging demand for unique vacation rentals.
- Marriott Vacations Worldwide Corporation (VAC): With its focus on vacation ownership and hospitality services, Marriott's bottom line is expected to grow alongside the recovery.
- The Marcus Corporation (MCS): Hotel and resort operators like The Marcus Corporation will benefit from the boost in travel.
- Hotel Chains: The hotel sector in general is projected to see modest growth, with U.S. hotel demand predicted to climb by 1.1% in 2025.
- Cruise Operators: Passenger voyages are projected to see a 5% increase in 2025, providing a financial lift for companies like Carnival Corporation (CCL 📈0.10%) and Royal Caribbean Group (RCL 📈0.14%).
- Investors interested in capitalizing on the travel industry's revival might consider investing in companies like Airbnb (ABNB), Marriott Vacations Worldwide Corporation (VAC), The Marcus Corporation, or hotel chains due to their expected growth.
- With tech giants investing in AI projects like Oracle's participation in the $500 billion Stargate project, there's potential for significant returns for those who choose to invest in companies such as Microsoft (MSFT), Nvidia (NVDA), and Arm (ARM).
