Closing Bell - Closing Bell Overtime: Netflix Earnings, Interactive Brokers Chairman on Results, CEOs Arrive at the White House 1/21/25

Episode Date: January 21, 2025

It’s a jam-packed hour as earnings kick off in full force. Paul Hickey from Bespoke Investment Group and Mark Mahaney of Evercore ISI kick things off with a deep dive into the earnings landscape, including Netflix, United Airlines, and Capital One.IBKR Chairman Thomas Peterffy on his company’s latest quarter and margin activity, while former NBC Entertainment Co-Chairman Ben Silverman unpacks Netflix’s earnings results and the company’s long-term strategy. Steve Bornstein, former CEO of ESPN, shares his perspective on Netflix's sports ambitions, and high-profile CEOs arrive at the White House for an AI announcement. 

That's the end of regulation. Bark ringing the closing bell at the New York Stock Exchange. Monster Beverage doing the honors at the Nasdaq. Solid gains on the first trading day of the new Trump administration. With nearly every sector higher, though. Apple notably sitting out this rally. That's the scorecard on Wall Street, but the action is just getting started. Welcome to Closing Bell Overtime.

I'm Morgan Brennan with John Ford. Well, after hours, earnings season kicking into high gear with results coming from Netflix, United Airlines, Interactive Brokers, Capital One, Seagate and more. We will talk to Interactive Brokers founder Thomas Petterfie about the numbers before he talks to analysts. And we'll break down Netflix with former NBC Entertainment co-chairman Ben Silverman and former ESPN CEO Steve Bornstein. Plus, President Trump is expected to unveil a private sector AI infrastructure investment this hour alongside SoftBank's Masa San, OpenAI's Sam Altman, and reportedly Oracle's Larry Ellison will take you to the White House when that event begins. But as we await earnings from Netflix, interactive brokers, and more,

let's bring in Bespoke Investment Group co-founder Paul Hickey and Evercore ISI head of Internet Research, Mark Mahaney. Great to have you both here with the S&P finishing up. It looks like nine tenths of one percent, 60-49 as we settle out here. So, Paul, I'm going to kick off this conversation with you because the only sector that was in the red today was energy. We've seen crude oil come off. We've seen yields come off. And at least up until maybe the last 24 hours, we saw the dollar weaken against major currencies, too. That sort of reversed itself a little bit. I can't I can't hear somebody talking to us. Hold on. We got some breaking news. United Airlines earnings are out. Let's get to those.

Phil LeBeau has the numbers. Phil. John, take a look at shares of United Airlines. This is a beat on the top and the bottom line for the fourth quarter. United earning $3.26 a share. That is 26 cents better than what the street was expecting at $3 a share. Revenue at $14.7 billion, also better than expected. The numbers within the numbers, these are strong across the board. Revenue per available seat mile up 1.6%. The street was not expecting that much growth there. Cost per seat mile up 5% versus the Q4 of 2023. Pre-tax margin of 9.7%, as well as free cash flow, negative $16 million. Revenue, this is what may be the reason why you see the stock moving much higher. Any way you look at it, their revenue was strong. International, up 8.7%.

Domestic, up 5.7%. Premium, up 10%. Corporate revenue, up 7%. You put all that together and has people saying, wow, that was a great fourth quarter. What can we expect in the first quarter? This is the guidance from United right now, expecting to earn well above the street, 75 cents to a buck 25 in the first quarter. For some point of reference, the street is at 52 cents a share. So well above what the street was expecting for the full year, United expects to earn

between 11.50 and 13.50 a share. Right now, the street's at $12.82. The company is also saying that its CapEx spending this year will be at $7 billion. Previously, it had said it expected to spend between $7 and $9 billion. That may be a reflection on perhaps pulling back a bit on deliveries from Boeing. We'll find out about that on the conference call tomorrow.

Also, we'll talk with CEO Scott Kirby about that tomorrow morning. Squawk on the street. You do not want to miss this exclusive with Mr. Kirby. We'll discuss not only the fourth quarter, but the first quarter. Any way you look at it, guys, this is the reason the stock is moving higher. Much better than expected results. Yeah, and a little higher as you're talking there. It was up better than 4% here in overtime.

Meantime, Netflix earnings are out as well. Julia Boorstin has those numbers. Julia. Netflix beating on the top and bottom line. Revenues of $10.25 billion ahead of estimates of $10.11 billion. Earnings per share of $4.27. Beating estimates of $4.20. So that's about double the year ago period.

Now, net ads here are the big surprise here. That's really driving the stock up more than 10 percent. The company reporting 18.9 million net new subscriber additions. The estimate was for 8.9 million. So that means that Netflix added 10 million more subscribers than anticipated. And what's key here is this is the last quarter that the company is going to be announcing subscriber numbers. The company is saying we're on track to reach sufficient scale for ads members in all of our ads countries in 2025 there. In terms of guidance here, first quarter revenue and earnings guidance both coming in short of estimates.

Q1 revenue of $10.4 billion versus an estimate of $10.49 billion and also EPS of $5.58 versus the $5.98 estimates. And of course, they are not giving any guidance for subscribers. And then one more piece of news here. They say we are adjusting prices today across most plans in the U.S., Canada, Portugal and Argentina. There have been some expectations of a price hike. Now we have that news, and the stock is up nearly 11%. Back over to you. All right. Julia Borsten, thank you. Mark Mahaney, I'm going to go to you on this one since you cover this stock.

And we do have Netflix up 10% right now. We've got price increases. We've got a beat on the top and bottom lines, and we've got that monster blowout beat on the net ads, even though it looks like Q1 revenue guidance might be a little bit light. Your thoughts? Well, this is one of the strongest prints I've seen Netflix put up, just fundamentally in terms of the ads. They just printed record high operating margins. And then their guidance for this next year, I mean, we all knew that FX had turned dramatically against most of these companies with major international exposure. There's a 9% appreciation

of the dollar since the company gave guidance. But despite that, they're still raising their guidance, their revenue guidance, and their operating margin guidance for the year. So there's just a lot of momentum. I think what the back story here is that the content slate is getting intrinsically stronger and relatively stronger versus other streaming offerings. And they're sort of running away with the streaming market. It's kind of hard not to interpret the results that way. You've got a lot of free cash flow. That came in materially better than expected. So it's and then they're flexing price power because they have price power. So it's just very hard to see anything negative here. And you'd want to stay long the stock. OK, Paul, I want to get a reaction to this, because quite

frankly, whether it is Netflix or it is United Airlines, you're talking about two names that have had monster moves in the stocks. We're both trading at or near record highs, at least at the end of 2024. And both have beat the expectations of the street, arguably going into an earnings season where the beats had to be so much bigger to see move so much higher. Your thoughts? Yeah. So, I mean, in the short term, the bar sort of got pulled back a little bit here beginning in the beginning of the year, like the financials. Netflix pulled back this year from its December highs. It was down about 8 percent.

So that, you know, that set this market up for a good report. And then you go to UAL. I mean, that was just Phil said that there was nothing not to like about that report. And the stock trades for 10 times earnings. So it's hard not to like that stock and bid that stock up higher, even when it's had strong results like that. And so from the broader market perspective here, rates have started to behave and companies are reporting good results. So it's a net positive for the market. All right. Paul, sit tight. Interactive brokers earnings are out as well.

Kate Rooney has those numbers. Kate. Hey, John. So it was a beat on the top and bottom line here in the fourth quarter for interactive brokers. Also announcing a 25 cent dividend that's going to be payable in March. I'll start with that EPS number. This is the adjusted number here, $2.03 versus $1.86. The street was expecting that was on revenue of $1.42 billion, also stronger than expected. We're going through for guidance here. We don't have it quite yet, but I want to bring you some other stats. Major spike in options and equity volume, commission revenue overall was up 37%. They point to some of the stronger volume here, 32% higher on, let's see, options volume and then stock or equity volume was up 65 percent net interest income up 11 percent pretty big jump in advertising here that uh spending overall administrative expensive and

expenses and general expenses were up 31 percent they say here that was driven primarily by an increase in advertising and then better profit margins as well guys 75 percent if you look at a year ago it was closer to 72%. Shares here are slightly higher, though, after hours. Back over to you. All right, Kate, thank you. Coming up, we've got Interactive Brokers Chairman Thomas Pederphy to break down those results with us before he dials in to the analyst call. But now let's get back to Julia Borsten with more on Netflix and live sports.

Julia? Yeah, that's right. Netflix saying, though they expect live programming to be a small percentage of total viewing hours and content expense, they think the eventized nature, saying they're going to be going for these big, more one-off events, will result in outsized value for both the members and the business. And they also give a little bit more insight into the advertising business. They say a top priority this year is improving the offering to advertisers so they can substantially grow their advertising revenue and they say they're going to be rolling out their first party ad platform to the u.s across the u.s in april

now one key thing here is the most recent number they announced for monthly active users for the ad supported plan was 70 million they announced that number back in November. They are not giving a new number here, but they did say that the ad-supported plan accounted for over 55% of signups in the ads countries and membership on the ads plan grew nearly 30% quarter over quarter, saying they're introducing a new feature, an extra member with ads offering

in 10 of the 12 countries. So they're really leaning into the ads option to allow them to offer a lower price subscription to expand the user base. Did seem to work with that 10 million additional subscribers more than expected. Back over to you, John. All right. Good info, Julia. Thank you. Now let's get to Hugh Son, who's got Capital One earnings. Hugh. Hey, John. So we've got EPS for Capital One of $3.09 adjusted, which is better than the $2.82 estimate. Revenue coming in more or less essentially matching the $10.21 billion estimate. Now, loan loss provisions of $2.6 billion are a little bit light compared to the $3.02 billion estimate.

Now, as for that acquisition of Discover Financial that, you know, they've been underway for about a year, they say, CEO Richard Fairbank says, quote, we remain well positioned to complete the acquisition in early 2025, subject to regulatory and shareholder approvals. Now, last I checked, the stock is down about 1%. So we're going to have to continue to drill down as to why that would be. John, back to you. All right. I'll take it. Hussan, thank you. Seagate earnings are out as well. The parade continues. And Pippa Stevens has the numbers. Pippa. Hey, Morgan. A mixed quarter here for Seagate during the second quarter.

EPS coming in at $2.03 adjusted. That did beat estimates, but a pretty sizable miss here on revenue, coming in at $1.56 billion, while Wall Street was looking for $2.32 billion. Guidance is also light here. They see QRevs at $2.1 billion, short of the 2.2 billion, with adjusted EPS of $1.70, also short of the $1.72 that analysts were looking for. Back in December, the company had previously warned that Q3 numbers would be a little bit weak here. Now, initially, the stock was down, but now you see reversing and now up about 1% or so.

John? All right. Pippa, thank you. I want to get back to the panel here. Mark Mahaney on Netflix and that extra info that Julia Borson just brought us on ads. I want to get your take on that and how much of a warning it might be to investors

in internet, some of the areas that you cover in general that Netflix had such a strong quarter, but the guy, because of FX, is facing such headwinds. So I guess I give you three points, John. First is I think we're going to hear this

from every large cap company that prints. Q4 was super strong. And then the outlook is going to be cautious based on that currency exposure. I think you're going to hear that across every company. Second is in terms of the live event slate that they're rolling out. I think what this has done is expanded Netflix's TAM or total addressable Market. Look, there are 75, 80 million households in the U.S. that are happy Netflix customers. But you throw in live events, you throw in some NFL, some NBA, some NHL, what have you. It just expands the value proposition in a way to reduce churn, it'll improve customer satisfaction, it'll grow the base more. So that's a positive for them. And how are they going to monetize that? Third point is advertising. It's just a matter of time. They think they're going

to double their ad revenue this year. They probably will. Netflix came out of the gate charging high CPMs and had a tiny audience. And most marketers said, no, thanks. But over time, as they build up that audience, they're going to get marketers who are going to find this to be prime beachfront property. And so I think it's just a matter of time before they really hit that critical mass of three to five billion in ad revenue. My guess is that that's probably 2026. And I think they're doing all the right things to get there. Paul Hickey, is it going to be easy enough for investors to sort out the difference between a bad or mediocre guide and FX headwinds? How much time, apart from the algos, is that going to take?

You know, I think you've got to listen to the company reports and dig in and dig into the results. You know, every company will be smart to at least talk cautiously because they have that to fall back on. They can lower the bar. But just as we're seeing with Netflix up nine percent in reaction to earnings, even given the FX headwinds, you know, investors are looking past that. And thankfully, as Morgan said in the intro, we've seen the dollar pullback, oil pullback and yields pullback over the last week. So as long as that trend continues, people won't care about what happened over the last six weeks. OK, Paul Hickey, Mark Mahaney, thank you both for kicking off the hour with us.

Despite some technical difficulties there at the top of the show. Well, we're awaiting an event at the White House where President Trump is expected to announce a private AI infrastructure investment. SoftBank's Masayoshi-san just arriving at the White House moments ago, and that is right after Oracle's Larry Ellison walked in as well. We're going to take you to that announcement when it begins. We're monitoring. And Interactive Brokers shares higher in overtime after reporting Q4 results moments ago. Joining us first on CNBC ahead of the earnings call is Interactive Brokers founder and chairman Thomas Petterfied. Thomas, good to see you. Thanks for the time. So stocks higher after hours. Looks like a strong quarter. Tell me what sort of trading behavior do you see? How do you feel about the overall health of this environment based on that?

Everybody seems to be incredibly optimistic. All of our metrics are up by 30 percent or more. So it was a fantastic quarter, and it looks like it is going to, the momentum is going to continue into the coming quarter also. So free market capitalism, the idea seems to be taking hold all over the globe. Everybody wants to invest in the United States. People are enthusiastic. Money is pouring in. So there is absolutely not one cloud on the horizon.

Now, I remember about a year ago, you were maybe a little queasy about the level of margin trading that you were seeing. And we've certainly seen an explosion in interest in what some might term riskier assets, even with the new president's name on them when it comes to crypto. How are you feeling about the level of margin trading that you're seeing and the activity in the riskier assets now? You're absolutely right. Margins, unfortunately, are up every day. Today is the highest level of margin we have ever had. And you are correct in saying that crypto area is difficult because it's basically based on nothing. It's just hot air. But, you know, as long as everything is working, it will continue to work.

So in light of that, what are you seeing in terms of that type of activity on interactive brokers? I mean, today we got the acting SEC chair announcing the standing up of a crypto task force. We're seeing Bitcoin trading right near record highs. And there's this expectation that this asset class is going to see further validation from this administration. Well, it would be very good if they put some rules around it. Yes. And that would stabilize the situation. I think at this moment it is very easy. We're talking about animal spirits here, and it certainly seems like investor confidence is higher, particularly post inauguration yesterday. CEO confidence is higher right now. In one area in

particular, you're really seeing it play out is the financial sector. And we talked about how the stage was set last week with the big banks with reporting their earnings. But this expectation around deregulation and the activity that's going to be unleashed in financial services. How do you see it and what does that mean for interactive brokers? As I said, it's free market capitalism all over. So it is everybody's extremely enthusiastic. Money is coming in from all corners of the world. Everybody wants to invest in the United States. People want to come here and work, but they may not be able to do that. But they are certainly able to invest here. And Interactive Brokers is the firm that they usually choose to invest in.

So I got to call this out again, Thomas, as good as all these numbers are and as excited as so many market participants seem to be, you seem to be a little torn here. Is it the line between confidence and recklessness? Are you sensing perhaps what you might be concerned is recklessness in this activity as you talk about the need for some rules around some of these assets and how much people are rushing in? Well, I am. I am very, to tell you frankly, I'm worried about the crypto area. But everything else seems just very good to me.

Crypto could be an issue. But I think even if that were to collapse, we would survive it and we could do very, very well. All right. Thomas Petterfy, great to have you on, on the heels of earnings. Thank you. And a 25% dividend as well, with shares of Interactive Brokers up about 2%. Let's get back to Pippa Stevens for more on Seagate's results. Pippa. Hey, Morgan. Well, a quick update here on their revenue. Q2 revenue came in at $2.33 billion, which was just ahead of estimates at $2.32 billion. The stock had been trading in positive territory earlier, but just now flipping into the red.

John? All right, Pippa, thank you. Well, coming up, much more analysis of Netflix results and the read-through for the rest of tech and media as that stock jumps in overtime. Last I looked, it was up, yeah, there it is, almost 12%. And President Trump is expected to announce a private sector AI investment in just moments at the White House. OpenAI's Sam Altman just walked in right after SoftBank's Masa San and Oracle's Larry Ellison. We're going to take you there live when that event begins. Overtime is back in two. Let's get back to Julia Borson for more on netflix price hikes julia morgan we now have the details of netflix's price hike that it announced in its earnings report

the company announcing that its standard with ads service will go from seven dollars to eight dollars its standard without ads will go from 1515.49 to $17.99. The premium service is going to go up by $2 from $22.99 to $24.99. Here we have a little bit of insight, though, in how they're trying to push people towards their ad-supported plan. And as part of their crackdown on password sharing, trying to get people to pay for extra members. If you're adding an extra member now instead of costing $8, it's going to cost $9. But to add an extra member with ads, so that means if you're paying for an ad-supported subscription and you have someone who's freeloading and you want to add them as a member, that is not going to change price. That's going to remain $7 to add an extra member with ads. Netflix shares now up about 12.5% on their better than expected earnings report.

Back over to you. All right, Julia Boorstin, thank you. For more on Netflix, let's bring in Ben Silverman, chairman and co-CEO of PropGate Entertainment and a former NBC Entertainment co-chairman. Ben, it's great to have you on. And I want to start right there. We've got price hikes and we always talk about the fact that content is king, but with live sports programming and more added to the slate now and an absolute trouncing in terms of Q4 net ads, 10 million more than the street was expecting. Content king? Well, clearly it's a driver of Netflix's business. But I think what they're able to do with the levers of the scale they have is incredible. The fact that they can keep adding price to it is an amazing, you know, incremental. It feels like every six months the price is hiked on Netflix.

My own, you know, family contribution continues to rise. And I think the live events are massive drivers for the advertising business. They always have been in sports particularly. And I think they're going to really help underpin this expansion in the advertising space and the scale they have. And I think also one thing that should be noted as people are worried about fact checking on meta or whether TikTok exists because it's a tool of the Chinese government. One thing you can say about Netflix is you're contextualized as an advertiser with premium high-end content. And you're also contextualized with narrative episodic content that provides real emotional connectivity that is so unique as they scale as a tech player, but also deliver the promise that the broadcasters

and cable channels did. So this combination feels really opportunistic for advertisers who want to be in safer environments, but also want reach. All right. You bring up such a good point and the nuance around all of this. And it's not just TikTok either. It's also YouTube and the fact that it's been eating everybody's lunch and in terms of viewership hours as well for years now. I do want to dig a little deeper into this ad business because the company did say that they're planning to offer advertisers a first party ad platform here in the U.S. in April. What does that do to the ad market and what does that do in terms of the ad tier for Netflix and how it positions them for

2026 and beyond? Well, I think it's obviously going to, you know, suck some energy out of the smaller scale, traditional broadcasters and cable channels. But I also really do think to your point about YouTube and others, it's going to be a real alternative that didn't exist. You know, everything's been judged in terms of minutes or engagement. It hasn't been judged in terms of quality

as the digital players have exploded on the scene in their advertising reach. And I think this is going to be a big opportunity for Netflix to kind of differentiate. Not only can you reach all these people at once, but you can do it through brands, you know, like the NFL, and you can do it through shows, you know, like the Squid Games. And you can do it in ways that are contextualized with certain demographic segments, which I'm sure they're going to expand their reach and how they target since they have that information, and geographic, you know, targeting that is so incrementally interesting, because when you think about global advertisers, they've always been

limited market by market, and as this expands globally globally and you're Nestle, you're a global seller of chocolate. You're a global seller of coffee. Ben, give us a look at the chessboard here as you see it when it comes to this. Netflix, it seems to me, is hiking prices just as it's halting its quarterly subscriber reporting and as it's releasing more information about viewership of specific shows. It seems like that's a setup kind of similar to when Apple did something similar about reporting iPhone numbers where they can afford to do some things that reduce their net subscriber ads in order to strategically build out this ad business.

How does that position them versus some competitors in the space that still need to report subscriber numbers to build investor confidence? Well, I don't, I'm not a wall street guy. I am a content guy and a creative guy. I just live with all these people as a producer and creator. And I see how they engage with us on that side. And I see what is making them successful as somebody who's been strategic as a former chairman of a network. And I will say, when YouTube started to explode, I said, oh, YouTube wants to be TV.

They want to be kind of everything. And then they kind of pulled back a little as they developed out their kind of cable strategy as they distribute cable. And then as Netflix was growing and they started to migrate to different genres, I'm like, oh no, they want to be TV as opposed to wanting to be like HBO used to be. And I think they're succeeding on that.

But I do think there's going to be room in these other places for kind of more premium led content, more specific led content where you don't need to be everything for everyone, but you can revert back to that HBO. And when I look at kind of Apple's television subscription model, I really see that there in the kind of quality of content they're building and that connectivity, and can they grow that audience to match it? I know on the other side, the amount of money I'm paying in services to Apple when I include music, news, television, and cloud,

it actually is quadruple what I'm paying to Netflix. So I think they all have different opportunities. And on the other side, the real scale partner, player, competitor is Amazon. And that's the one that I think really just keeps showing momentum. And it's going to be cool to watch them at the NBA. And so just a reorganization of all these companies is they're not going anywhere. They're doubling down on content as a driver of their tech platforms. Well, we're going to talk more about sports in this space in a minute with Netflix shares near their overtime highs up 13 percent now. Ben Silverman, thank you. Thank you.

Now let's get to our Mike Santoli taking a closer look at retail trading after Interactive Brokers results moments ago. Schwab numbers this morning. Mike. Yeah, both very strong. John, actually take a look at the big three of retail trading in terms of the publicly traded company. So Interactive Brokers, Schwab, as well as Robinhood. This goes back to July of 2021 because that's when Robinhood became a public company. And so you can see this real round trip that that stock has made. It's more than quadrupled in the last year, but it shows you it was just clawing back from those tough times. Remember, Schwab was moving right along with interactive brokers until that point a year and a plus ago

when we had the Silicon Valley bank crisis and the unrealized bond losses on Schwab's books and customers moving deposits around really did hit the stock. They're trying to climb out of that as well. Interactive, as you see, very, very clear play on high volume, professional, semi-professional, as well as individual traders. Now, take a look at another reading of how the public is approaching this market. So the top is retail traders call option buying. So essentially, the clear bullish trades versus the clear bearish trades. That's the ratio. And you see that this gap had opened up here with institutions, right? Institutions being a little more cautious. They're generally more sellers of risk to retail buying it. But you see that

wide spread there between retail and institutional. It's nothing, though, compared to what we saw in 2020, 2021. That was the meme stock craze. That was when really you had retail options players dictating a lot of the action. So we're kind of building back toward it. But there actually was a little bit of a drop in the last couple of weeks. So it seems to me there's room for this stuff to go a little bit more excitable even, John. Well, so Mike, I wonder what you make of what Thomas Petterfee just told us. He had told us about a year ago

that he was concerned about high levels of margin buying. He told us today that I think today was the very highest level he had seen. He's also concerned, even though the numbers overall are good and he feels good about the overall business, about crypto. So what does that say about the risk levels that this most successful of that cohort you just showed us uh is talking about it's i read a couple of things into it one

is pederfy is he a market maker guy uh he's a he's a floor trader guy by by kind of background and i think he's very risk aware in general. So he's not going to be one, I think, to feel like everything goes to the moon. And he sees where his customers are maybe getting toward the edge. Now, in terms of overall margin debt being at a record, well, guess what? The stock market's at a record. You would expect aggregate margin balances to be roughly tracking what the market values are doing. And if I look at some of the real industry wide numbers, the margin debt number, it's building,

but it's not yet something where I would say it's crazy. But I think he's he's correct that we just sort of are in this mode where people are willing to kind of go a little bit farther out on the branch to grab some returns. And in crypto, it's very fast moving and very hard to know exactly how it could snowball in one direction or another. Okay. Mike Santoli, we'll see a little bit later this hour. Much more on Netflix ahead when we talk to former ESPN CEO Steve Borenstein about his read on the company's live sports push. And we're awaiting President Trump's AI announcement at the White House coming in just moments with Sam Altman, Larry Ellison, and Masa-san. We're going to take you to Washington when it begins. Over time, we'll be right back.

Welcome back. We have a news alert in the space world. Defense and space company Voyager Technologies, formerly Voyager Space, has filed to go public. That's according to a report in the Wall Street Journal, which says the company is expected to be valued between $2 and $3 billion. Now, viewers of my space reporting, listeners of my podcast, Manifest Space, will be familiar with the company which is developing, among other things, a commercial space station. It has talked about the interest in eventually going public via a real IPO. Now, that follows a strong showing for space stocks today after President Trump's promise to, quote, pursue our manifest destiny into the stars, quote unquote, during his inauguration speech.

Rocket Lab hitting a record level. Planet Labs having its best day ever. And Redwire finished sharply higher, in part because it also announced a deal, a nearly $1 billion deal, to buy drone maker Edge Autonomy in a move to push further into defense tech as well. John, commercial space and defense tech, they have been the other Trump trade, and we've seen that in the way the stocks have behaved since the election. All right. We'll see how it continues. Well, time now for a CNBC News update with Angelica Peebles. Angelica. Hey, John. Senators received an affidavit today containing new allegations against Defense Secretary nominee Pete Hesketh from his former sister-in-law, Danielle Hegseth.

In a redacted statement obtained by NBC News, Danielle Hegseth said the nominee made his second wife fear for her safety. Hegseth has denied the allegations, while his former wife, Samantha Hegseth, said there was no physical abuse, quote, in the marriage. Three days into a ceasefire between Israel and Hamas, the United Nations said nearly 900 aid trucks entered Gaza today. As part of the ceasefire deal, 600 truckloads of aid are to be allowed into Gaza every day during the six-week initial truce, with half of the aid trucks designated for northern Gaza. The U.N. also reported more than 900 trucks entered Gaza on Monday. And you can Venmo tickets for JetBlue flights. The carrier said today it is now accepting the payment option on its website, and that will be available on the mobile app in the coming months.

The payment option is the latest effort from JetBlue to enhance its service to bring in more customers as it struggles to boost profits. Back over to you guys. Angelica, thank you. Well, after the break, just how much risk appetite is in the market as President Trump kicks off his second term? Maybe less than you'd expect. We'll tell you what the data says and what it means for the health of the bull market. And President Trump is expected to announce a private AI infrastructure

announcement. We're expecting that any moment alongside key tech CEOs from Oracle, OpenAI, and SoftBank. We're going to take you to Washington for that event. Meantime, check out some big earnings movers in overtime, including a leap higher for Netflix, which is now up 13.5%. We've got much more on that straight ahead. Stay with us. We'll be right back. Welcome back. Let's get another check on Netflix shares here in overtime. The stock is up about 13.5% still. That's overtime highs. Streaming giant bursting into sports, meanwhile, in a big way last year, 2024, telling shareholders in today's report one of its priorities for this year is to further develop new initiatives such as live programming and games.

Joining us now is Steve Bornstein, North America president at Genius Sports, former president and CEO of both ESPN and NFL Network. Steve, along the way, welcome to you. You also developed the X Games and Winter X Games. So I think you're kind of experts in this kind of alternative approach to sports outside of the mainstream. What do you make of Netflix's moves so far and how they might extend what's brought it benefit so far? Well, I think they've done they've done everything right. I mean, you can't think of a mistake or a misstep that they've made as they as they as they pursue the sports audience. And, you know, that's their business, really. I mean, they're in the business of aggregating audiences. And, you know, for a

long time, they didn't really feature live sports or live sporting events. But now they've seemed to gotten the bug and they seem to be doing everything correct. So Disney recently made this move to acquire a majority of Fubo and retool some of its structure. Does that change anything for Netflix? I don't think so. I mean, I think, you know, the bundling and the rebundling of content is going to proceed pretty rigorously for the next three to five years. And so that's where I think you saw with the latest Disney moves and the discarding of venue. But Netflix has been marching to their own drummer. And I can't really fault anything they've done.

I mean, I think it's been really smart with the Tyson fight and then they did a major acquisition of WWE. And then, you know, most recently they acquired, you know, Women's World Cup rights. And I think that's a real genius move for them. That's exactly where I was going to go with you. The fact that two back-to-back NFL games, WWE Monday Night Raw, that successful Jake Paul versus Mike Tyson fight, which I know was successful for Netflix, even if some of us viewers were not so thrilled with how it all shook out. I just wonder what it does to pricing for live sports programming in the marketplace more broadly when you have a Netflix coming in and executing so well and obviously

having the cash flow to back up those acquisitions? Well, I think if the question is, is it a good time to be an IP holder, I think the answer is yes. It's witnessed by the recent NBA deals that Adam Silver orchestrated and what Netflix has done in the sports business. But they're a player among many right now, and I don't see any real lack of pressure on pricing. I think that's going to continue to be going upwards because of the unique value of live sporting events in today's marketplace. If I take a step back, and I come from the premise of sports programming is keeping the cable bundles together. It's the glue that's still holding them together.

At a time where you are seeing M&A and consolidation and spinoffs across the broader media landscape, how do you expect that landscape to continue to evolve in 2025 and beyond? Again, I think sports is going to be a critical element in anybody that's trying to aggregate content, aggregate audiences. It's live. It is a unique prospect to people that care about it. And it also helps your ad sales business, which I think Netflix is also considering as they ramp up and put more live sporting events on there. So I think sports become a pretty critical element in any broadcast, whether you're CBS or you're Netflix or you're Amazon or you're NBC, you're going to need a sports component to actually separate yourself from everyone else.

All right. Steve Bornstein, thank you. Up next, a look at the risk appetite on Wall Street as President Trump kicks off his second term. And we're still awaiting President Trump's AI infrastructure announcement in Washington alongside Masa San, Larry Ellison, Sam Altman. We're going to take you there when it begins. Welcome back. Stocks rallying today as investors digest the likelihood of President Trump's suggested tariffs. Mike Santoli is back for a closer look at risk appetites under this new administration. Mike. Yeah, Morgan, the Brank of America Global Fund Manager monthly survey is out.

And this is a blended risk appetite gauge. Essentially, what B of A does is they say, what's the aggregate expectations for global growth among the respondents, as well as their cash holdings and their equity exposure to get this sort of blended view of whether they're expecting a lot or a little from the environment. And you see where we're elevated. We're near the top end of the range. You would expect that in a bull market when generally growth has been good. But what I find interesting is it's not really at the extreme, extreme, so to speak. And it's very similar to where we were in early 2017, when there was a similar position of the market having rallied from Election Day into the following year and then President Trump taking over.

And the market did, of course, march higher throughout 2017. So the point is that as with the previous retail trader metric, there is room for people to get or have their optimism redeemed essentially from this level, even if, of course, nobody is really positioned for too much negative to happen, John. Okay. Mike Santoli, thanks for keeping us honest as always. Still ahead, we're going to bring you live to the White House when President Trump announces a private AI infrastructure investment. We'll be right back. Welcome back. Let's get a check on today's overtime movers. Netflix is jumping still up 13% after beating on earnings and revenue, raising its revenue guidance for the full year and surpassing 300 million paid members. Interactive Brokers is also higher, let's see, by about 3.5% after topping Wall Street estimates.

United Airlines popping 3% after beating on the top and bottom lines. And Capital One is lower after missing revenue estimates. Well, coming up, President Trump is expected to unveil a private AI infrastructure investment at the White House. You can see right there on your screen, any moment with OpenAI's Sam Altman, Oracle's Larry Ellison, and Masa San from SoftBank. Oracle shares rallied today on the news in the regular session, and a number of other tech names, too, including NVIDIA. We're going to take you there when it begins. Welcome back. We've been telling you about it all hour. President Trump expected to make an AI announcement at any moment. Moments ago, we saw SoftBank's Masa San, Oracle's Larry Ellison and OpenAI's Sam Altman all arriving at the White House. Let's get to Eamon Jabbers for the latest.

Eamon, Stargate expected to start in Texas, start $100 billion and move up to $500 billion over four years. That's what we're hearing from reports, and we've seen the stocks move in light of them. Yeah, that's what we know so far, Morgan. We're waiting for the event to begin here at the White House. They are running a little bit behind schedule here on day one of the Trump administration. But our intrepid crews out in the cold did get those arrival pictures that you just saw just a couple minutes ago. And what we know so far is this is expected to be a massive joint venture. The big question I have going in, of course, is the price tag overall for all of this. And also a question of whether

or not this money that's being announced counts sort of as SoftBank's $100 billion that they talked about investing in the event with Donald Trump at Mar-a-Lago back in December, or whether this is additional money on top of that. Clearly, the Trump administration sending a big signal here in terms of investment in the U.S., offshore investment coming to the United States, construction of data centers and a key industry for the future here. They're putting down a lot of markers here at the White House on the first day, guys.

Eamon, there is a question of how much of this is new, right? The reports that I've seen said it could eventually total as much as $500 billion over four years. But that sounds like a lot of hedging. That's not necessarily a commitment. Or do we know that there's a commitment to a specific amount above that $100 billion? Is that part of what we're waiting on here? Yeah, we don't know exactly what the commitment is in terms of dollars overall, John. That's a great point.

You know, what we saw with President Trump when Masayoshi San was with him in Mar-a-Lago is he announced $100 billion, and Trump said, well, let's make it $200 billion and sort of egged him on to go bigger. We'll see if he does the same thing with the CEOs here at the White House this time around. But, you know, he's got, you know,

a big brain trust here in terms of AI executives who will be in the room with him. And so sort of all the best and brightest minds on AI will be there. One other thing I'll be watching for as you take a live look now at the Roosevelt room, one of the other things that I will be looking for here at this event is whether Elon Musk attends. Elon Musk has been at all of the events yesterday at the president's side since Election Day, pretty much down in Mar-a-Lago. Now he's working on this Doge effort to cut government spending. Will he be there in the room? Of course, his relationship with executives in the AI space has been, you could say, tenuous

over time. Does Musk participate in this is one of the things I think a lot of folks are going to be watching for. Okay. And we know you're going to bring us those headlines as we get them, as we continue to monitor the White House right now, Eamon Javers. And we did see NVIDIA, Dell, Arm, and Oracle stocks all pop into the close on expectations around this news today. And we've been talking a lot about those animal spirits in the market. They continue to be a big story. Yeah, Netflix, too.

That does it for us here at Overtime. Fast Money starts now.