Q4 2024 Earnings Conference Call Recaps: Netflix (NFLX)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers Netflix’s (NFLX) Q4 2024 earnings call.
Netflix (NFLX) is the world’s leading streaming entertainment service with a library of popular films, TV shows, and original content. NFLX has more than 300 million paid memberships across 190+ countries, but still says it has only captured less than 1% of TV viewing worldwide. Known for hit series like Stranger Things and Squid Game and its growing library of blockbuster films, NFLX is continually innovating with live programming, gaming, and a growing ad-supported tier. This quarter, the company achieved a record 19 million paid net additions in Q4, fueled by a new season of Squid Game and Christmas Day NFL games. The ad-supported tier now accounts for 55% of new signups in ad markets, doubling revenue YoY. NFLX is also expanding live programming, securing FIFA Women’s World Cup rights for 2027 and 2031. NFLX opened more than 16% higher on 1/22 after beating estimates and eclipsing $10 billion in revenues for the first time ever in a quarter. The quotes below are from the company’s earnings call and prepared shareholder letter…
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Q4 2024 Earnings Conference Call Recaps: Capital One (COF)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers Capital One’s (COF) Q4 2024 earnings call.
Capital One (COF) is known for its credit cards, auto loans, banking, and savings accounts, serving a broad customer base from subprime to affluent consumers. Its credit card division is one of the largest in the US, offering competitive rewards and premium features like airport lounges. The company provides valuable insights into consumer spending, credit trends, and broader economic conditions. In Q4, Domestic card purchase volume grew 7% YoY, while revenue rose 9%, boosted by new account growth and the end of its Walmart partnership. Auto loan originations surged 53% under the conditions of stable vehicle values and easing credit score inflation. Credit metrics showed stability, with delinquency rates improving seasonally. Despite inflation and high-interest rate pressures on some consumers, COF noted strong labor market conditions and steady consumer debt servicing. COF shares were up more than 2.5% through midday on 1/22 after a 55% YoY jump in net income and the rosy outlook on the Discover acquisition…
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Bespoke’s Morning Lineup – 1/22/25 – Peekaboo
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week trial to Bespoke Premium. CLICK HERE to learn more and start your trial.
“If a man will begin with certainties, he shall end in doubts; but if he will be content to begin with doubts, he shall end in certainties.” – Francis Bacon
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
The positive reaction to earnings reports continues this morning with the most high-profile example being Netflix (NFLX). As noted in yesterday’s Chart of the Day, historically, the stock tends to respond most positively to its Q4 earnings report, and that was the case once again this earnings season as the stock is indicated to open close to 15% higher taking the market cap well above $400 billion. NFLX isn’t the only example, though, as UAL, P&G, and Travelers are just a few more examples of large companies trading higher in the pre-market in reaction to earnings. The only notable losers are in the Health Care sector where Abbot (ABT) and J&J (JNJ) are down about 2%.
What was looking like a breakdown in the chart of the S&P 500 (SPY) last Monday has quickly reversed. After closing back above its 50-day moving average on Friday, equities picked right back up on Tuesday with additional gains, breaking the string of lower highs and the short-term downtrend that has been in place since early December. We’re still just about 1% off those former highs, but the last five trading days have been a good start, and if the market can continue to react positively to the incoming earnings reports, those highs should be within reach.
Like SPY, some other major indices are playing peekaboo with their downtrends that have been in place since early December. The Nasdaq 100 ETF (QQQ) is an example as it broke its downtrend from the December highs yesterday. Additionally, it didn’t make a higher high yesterday, but based on pre-market trading, it should break that string of lower highs today.
The Closer – Treasury Holdings, Consumers, Positioning – 1/21/25
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Looking for deeper insight into markets? In tonight’s Closer sent to Bespoke Institutional clients, we lead off with a look into the Fed’s Treasury ownership and who else owns Treasuries (page 1 and 2). We then review the latest earnings (page 3) before pivoting over to some consumer spending data out of the NY Fed (page 4). We finish with a preview of this week’s Treasury auctions (page 5) and the latest positioning data (pages 6-9).
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Q4 2024 Earnings Conference Call Recaps: DR Horton (DHI)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers DR Horton’s (DHI) Q1 2025 earnings call.
DR Horton (DHI) is the largest homebuilder in the US, specializing in single-family homes, townhomes, and multi-family properties with operations in 36 states. The company focuses on providing affordable housing options to first-time buyers, move-up buyers, and renters. This quarter, DHI reported results reflecting a slight YoY decline in revenue and earnings, driven by lower margins amid higher incentives like mortgage rate buy-downs. Closings fell 1% to 19,059 homes, with an average selling price of $374,900. Improved construction cycle times was a highlight, while unsold inventory dropped 15% YoY. Rental operations brought in $218M in revenue but faced margin pressures from higher rates. The company emphasized affordability, using smaller floor plans and attached homes to address limited housing supply at lower price points. On better-than-expected results, DHI shares opened almost 3% higher, but those gained were erased intraday to close around 2% lower…
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Daily Sector Snapshot — 1/21/25
Chart of the Day: Netflix (NFLX) Next Up
Q4 2024 Earnings Conference Call Recaps: 3M (MMM)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers 3M’s (MMM) Q4 2024 earnings call.
3M (MMM) is a manufacturer known for its more than 60,000 products used widely in healthcare, electronics, automotive, and consumer goods cases. From iconic brands like Scotch and Post-it to cutting-edge technologies like optical films and industrial adhesives, 3M impacts everyday life and critical infrastructure worldwide. Product innovation was a standout on the company’s conference call, with 169 new launches, including LCD (Liquid Crystal Display) 2.0 and Expanded Beam Optics connectors for data centers. Supply chain improvements raised OTIF (On-Time In Full) to 88%, though Safety & Industrial remains a focus area. Macroeconomic challenges persisted, with soft US consumer spending and regional variability, but growth in China (+high-single digits) and aerospace (+double digits) offset these headwinds. MMM results topped estimates and shares were up more than 5% on 1/21 in reaction…
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The US: Nicest House on the Block
President Trump’s second term has officially begun. Since winning the election a little over two and a half months ago, the S&P 500 (SPY) has risen 5.42% through today. That’s better than any of the other key country ETFs shown in the snapshot below. For the most part, these country ETFs have largely fallen since the US election with the two largest declines coming out of South Africa (EZA) and Brazil (EWZ). More broadly, emerging markets like these have significantly underperformed with an average decline of 8% versus only 1% for developed market countries. While most country ETFs have fallen since early November, in addition to the US, there are only four that are up on the year: Germany (EWG), Singapore (EWS), Canada (EWC), and France (EWQ). Canada’s gains may come as somewhat of a surprise as the newly inaugurated administration has put the country at the center of tariff talks alongside the neighbor to the south, Mexico (EWW). We provided commentary on these topics in today’s Morning Lineup. While EWC has risen, Mexico has been much weaker with a 6.5% decline since the election. Furthermore, Mexico (EWW) is currently the country ETF that’s the farthest below its 52-week highs and closest to 52-week lows (3.71% away) of the ones shown.
In the chart below, we show the relative strength lines of the country ETFs for Mexico (EWW) and Canada (EWC) versus the United States (SPY). As shown, the two ETFs have seen relative performance drop since the election as tariff tensions have become more of a reality, but that weakness is in the context of longer-term underperformance that has been persistent throughout the past year.
Q4 2024 Earnings Conference Call Recaps: Charles Schwab (SCHW)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers Charles Schwab’s (SCHW) Q4 2024 earnings call.
Charles Schwab (SCHW) is a leader in wealth management, trading, banking, and financial advisory. With over 44 million client accounts, SCHW is home to retail investors, independent financial advisors, and institutions. The company’s Q4 earnings showed $5.3 billion in revenue, up 20% YoY, driven by a 19% rise in net interest revenue and notable client engagement. The integration of 17 million Ameritrade accounts brought in nearly $2 trillion in assets, with minimal attrition. Net new assets (NNA) surged 51% for the quarter, while thinkorswim (trading platform acquired through Ameritrade) adoption grew 60% YoY. SCHW plans to launch broader retail access to alternative investments and is preparing for spot crypto trading pending regulatory approval. Efficiency and technology were also other hot topics discussed on the call thanks in part to investments in AI-driven tools. CEO Rick Wurster projects 2025 to be a “liftoff year” for SCHW which appears to be off to a solid start after the stock gapped up in reaction to its report on Tuesday morning, 1/21…
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