Stocks: Netflix to report earnings, Cinemark upgraded by Morgan Stanley

Yahoo Finance Live anchors discuss earnings expectations for Netflix as well as how Cinemark stock is performing.

影片文字轉錄稿

[MUSIC PLAYING]

JULIE HYMAN: Welcome back. We continue to see stocks rally here, about nine minutes into this Tuesday trading session. It looks like earnings on [? balance ?] are giving people some hope today. We've got the NASDAQ trading higher by 2%, the S&P at 1.8%, and the Dow up 1.5%.

The biggest earnings report of the day, I would say, arguably-- probably not arguably, just the biggest earnings report of the day is Netflix after the close of trading. We have been talking about that for the past week or so. And the big number to pay attention to, of course, is the 2 million user drop, subscriber drop that analysts are predicting. The shares are trading higher going into the report.

BRAD SMITH: Yeah, are you still watching is what Netflix is asking you here, both in platform experience and on the new subscriber accounts that we're going to be looking for. And any type of sense around this earnings-- I mean, a streaming recession is what Morgan Stanley is warning of.

But even more so, it's really just around for the broader tech landscape, what kind of inclination will investors, will analysts have to extrapolate what they're seeing in the consumer behavior from Netflix earnings and also apply that transitivity towards some of the other very consumer discretionary names within the broader tech landscape as well right now? For the XLK, you're seeing that year to date, though, right now, lower by a little more than 23%.

JULIE HYMAN: Yeah, and I'm just looking at the options implied probability in Netflix shares. What does that mean? It means what are options traders pricing it in terms of what the move is going to be off of earnings for Netflix. Right now, it's 17%. So--

BRAD SMITH: Wow.

JULIE HYMAN: --one way or the other, the pricing, it's unclear which way that would be.

BRAD SMITH: Right.

JULIE HYMAN: But there's anticipation of a large move in those shares. Remember, the last time the company reported the shares fell by 35% in the following session. So that is part of the reason why there's so much attention here being paid to Netflix. There's gonna be a lot of focus as well on, going forward, content spending plans from Netflix. So that's gonna be interesting. But you're also looking at not just the streamers, but the actual "going to the theater"-ers.

BRAD SMITH: Right, staying in the content landscape. Who is going to the theaters? Well, it seems like there is some bullish nature, at least right now around Cinemark as they are getting particular upgrade from Morgan Stanley. You're seeing shares for Cinemark, CNK, moving higher by about 9%, a little bit more than that on the day. Also, AMC in kind of tandem with that is seeing a little bit of a move higher on the day by about 3.5%. Of course, it is Tuesday so that means AMC stubs members, for that free membership, they have $5.00 movies.