Fast Money Blog- 7/19/24

It was a crazy, volatile week on Wall Street. On Thursday, July 18th, Netflix, Inc. (NFLX) released its Q2 2024 earnings. Top-line revenue came in at $9.6 billion, up 17% year-over-year.  Programming content and the addition of live TV events were responsible for the growth.

Advertising-supported memberships grew 34% year-over-year during the quarter.  The company also stated that in markets where its advertising tier is available, that plan makes up over 45% of all signups.

Global paid memberships rose 16.5% year over year to 278 million.  As Netflix stated during Q1, this is one of the last updates Netflix will release regarding its membership numbers, as the company said it would focus on revenue and operating margins as its primary financial metric.

As it stands right now, NFLX is the most profitable streaming service in the world.  As a long-term investment I strongly recommend holding shares of NFLX.

In other news, tech sector stocks radically dropped this week, because of misinformation put forward by Presidential candidate, Donald Trump.

In an interview on Tuesday, July 16th, Trump stated that Taiwan should pay for U.S. protection from China. He also accused Taiwan of taking the computer chip industry away from the United States.

In reality, Taiwan did not steal the semi-conductor business from the U.S. It was Intel’s decision to move chip manufacturing to China that caused the U.S. to lose its leader ship position.

Recently the Biden administration created the CHIPS and Science Act designed to stimulate economic growth via semi-conductor, AI and chip manufacturing here in the U.S. This act was passed by the Republican led house.

We are all waiting for a retracement in the technology sector, which I expect to happen over the next 30 days.

I also expect to see increased volatility in the market overall as we head into the November presidential election.

Stay disciplined! Stay positive!

Tyrone Jackson

The Wealthy Investor