💡 Insights You Might Have Missed
Spotlight on market movers
Welcome to a special edition of How They Make Money.
As earnings season unfolds, here’s a quick recap to get you caught up.
Stay tuned for our November Earnings Visuals report, dropping at the end of the week. These reports cover 200+ companies throughout the earnings season. Here’s the latest one for October if you missed it.
🍿 Netflix: Crushing It Again
Netflix (NFLX) has nearly doubled this year. The password-sharing crackdown helped the platform add 5 million paid members in Q3 despite the lingering effects of the Hollywood strikes. North America makes up only 30% of memberships, down from 42% five years ago. Members continue to watch Netflix for roughly 2 hours per day.
Success in APAC is critical—notably in Japan, Korea, Thailand, and India.
With an in-house ad tech platform and new partners, management expects the ad tier to be a growth catalyst. But not until 2026.
Why is the ad-supported tier still lagging in monetization?
🤖 Tesla: Autonomy Gamble
Tesla (TSLA) has been a true rollercoaster this year, dropping 40% in the first half following price cuts and a delivery decline, only to more than 2X in the second half on hopes around Musk’s vision for autonomy and robotics and a bold forecast of 20% to 30% delivery growth in FY25.
Non-auto segments were 20% of gross profit, nearly 2X year-over-year.
Tesla unveiled the Cybercab. We look at the goals and potential hurdles.
Waymo vs. Tesla‘s path to autonomy and what role to expect from Uber.
☁️ Amazon: Still Day 1 For AI
Amazon (AMZN) is expanding its operating margin through continued rapid growth of AWS and its advertising segment, both up 19% year-over-year. With free cash flow up 123% to $48 billion in the past 12 months, the company can fund its ambitious goals.
Why is first-party outperforming? Health, beauty and personal care.
Prime could be critical in bringing Pharmacy and Kuiper to the masses.
Amazon Advertising continued to gain share against Google and YouTube.
🔎 Google: Little Engine That Cloud
Google Cloud improved its market share to 13%, gaining against tier 2 cloud providers. YouTube ads and subscriptions (Premium and Music) generated over $50 billion in the past 12 months (roughly 130% of Netflix’s revenue). However, regulatory scrutiny is the main focus, with the possibility of seeing Alphabet (GOOG) broken up.
What’s driving Google Cloud market share gains?
What are the three antitrust trials impacting Alphabet?
Could YouTube follow in Meta’s footsteps in the coming quarters?
🕵️ Palantir: The AI Power Play
Palantir (PLTR) delivered a home run quarter. Is it enough to justify its 250% stock price surge in 2024? Bears focus on trailing metrics and valuation, while bulls watch customer growth, billings, and retention metrics as signs of great things to come. US commercial customers were 26 of the 36 customers added sequentially.
Valuation is elevated, but what about peers?
Go-to-market and partnerships: AIP Bootcamps, MSS, L3Harris.
Management signed 104 deals over $1M. What’s driving momentum?
💰 Hedge Funds' Top Picks in Q3
Every quarter, funds managing over $100 million must share their portfolio moves as part of their 13F filings. Let’s review what we learned.
Did hedge funds buy NVDA in Q3?
Which stocks were notably absent from the list?
What made Roblox (RBLX) and Flutter (PDYPF) top picks?
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