*This is sponsored advertising content.
Good Morning Everyone!
Remember, the stock market has doubled your money every ten years for the last 100 years (on average). It has done this with:
Recessions.
Depressions.
World Wars.
Crashes.
It’s a long-term game. Zoom out.
Also…
REMINDER: Before we dig in, don’t forget that paid subscriptions to GRIT Capital are 50% off for the next 11 days and include two complimentary 3-month paid subscriptions to our CARBON and CRYPTO newsletters!
MARKET UPDATE
Yesterday S&P 500 up 2.8%
498 of the S&P 500 names higher
Largest number of advancers since Dec. 26, 2018
Only the 8th time since 1996 that 495+ S&P 500 stocks higher
QQQs (Nasdaq 100 ETF) up through its 50 day moving average (1st time since March 2022)
Yesterday, Defensive sectors underperformed (Staples and Utilities)
Crude 99 -2%
Putin said today that the Nord Stream pipeline will restart tomorrow, but flows will be limited.
API (American Petroleum Institute) reports larger than expected rise in U.S. inventories last week
Netlfix +5%, up 20% in the past 5 trading days, Message: Q2 was the bottom
Q2 subs down 1 million Q-o-Q vs. guide down 2 million AND Q3 guide up 1 million (flat over Q2 and Q3)
Q3 Revenue guide is light related to FX headwinds (strong U.S. dollar).
Confidence that they can reaccelerate revenues.
Advertising tier is targeted for early 2023 launch
Password sharing launch also in early 2023 (100 million households use Netflix but don’t pay for Netflix)
Q2/22 Paid memberships: Total = 221 million
UCAN 73 million USA, Canada
EMEA 73 million Europe, Middle East, Africa
LATAM 40 million Latin America
APAC 35 million Asia-Pacific, India, Korea, Australia
Netflix is now self-funding.
NFLX expects substantial free cash flow in 2023 as paid advertising and password sharing launch.
Q2 net cash generated by operating activities was $103 million. For the full year 2022, FCF to be about $1 billion.
Free Cash Flow for 2023 and going forward will be above $1 billion / year.
2021-2022 TV Season, Netflix almost matched #2 CBS and #3 NBC combined (see chart).
Netflix share of U.S. TV viewing reached an all-time high of 7.7% in June 2022.
Cease fire in the content wars: Content spend $17 billion in 2022 and guide for $17B in 2023/2024
Streaming industry is shifting from “growth-at-any-cost” TO “profitable growth”
Other streaming stocks to watch today: Disney, Roku, Paramount, Warner Brothers
Don’t miss Netflix’s Friday release of their $200 million budget movie “Gray Man”, most expensive Netflix original movie
Earnings
Snap
JB Hunt in line, consumer is strong, no signs of a freight recession yet
ASML Semi -4%, reduced guidance
Abbott
Biogen EPS beat, guidance maintained
Baker Hughes missed EBITDA and Revenue
Under the Radar
FUTURE OF GAMING. The Play2Earn gaming industry represents massive revenue opportunities in Web3. With the upcoming launch of its new P2E platform which will enable more lucrative connections between players and games, NFT Tech is poised to capitalize on this explosive sector of the metaverse*!
*This is sponsored advertising content.
CRYPTO UPDATE
Ethereum is up +50% over its July lows
Total ETH supply in profit has risen above 50%
On the other hand, 50% of all value held by short-term BTC holders is at a loss, BUT…
Bitcoin is setting up to break above 3 long-term price models
Avg cost basis (Realized Price)
Avg cost basis of long-term holders (LTH-Realized Price)
200-week moving average
MEME OF THE DAY
Check out Graham's Newsletter.
For those who don't know, Graham Stephan runs one of the largest Personal Finance YouTube channels with over 10,000,000 monthly views and 3.7 Million subscribers. Graham’s Newsletter is for everyone interested in what’s going on in the world of money and investing.
In his recent issue, he talks about the crypto crisis and business models that crypto companies operate under, why things have gotten worse now and what you can do to protect your money.
Join Graham's newsletter – It's completely free.
Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
Grit Capital Corporation is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.