00:00 Speaker A
Now time for some of today’s trending tickers. We’re gonna check here on shares of Netflix, Rocket Lab and American Airlines. Shares in Netflix. Let’s start there because they’re higher today after the Wall Street Journal reported the company is aiming for a $1 trillion market capitalization to double revenue by 2030. This comes ahead of the streaming giants earnings report is coming on Thursday. So Simeon Netflix earnings are on deck. Ahead of that, that this was interesting. So the Journal was reporting executives were optimistic about the company’s growth prospects at their annual business review meeting last month. They were setting some, what sounds like ambitious goals here. So they aimed to double revenue from 39 billion last year, earn about nine billion global ad sales by 2030. They got a goal of tripling their operating income by 2030 from 10 billion last year. And just looking here, heading into the report, the stock well in the green this year, Simeon, it’s about a 60% over the past 12 months.
00:56 Simeon
This is what I love about this environment because I’m an old guy, but there was a book in the late 90s. It was called The Innovator’s Dilemma. And what the innovator’s dilemma posited was that companies who were legacy companies would be unable to compete with disruptive technology because they were too wedded to their old way of doing business. Yeah. It appears the opposite today. Netflix was a disrupter 20 years ago, but they and other companies that are 20 and 30 years old appear to be in much more powerful positions than the companies that got disrupted in the late 90s. Has to do with the cost required to compete in AI, the economies that eyeballs and just market share gives you. So it is very different than what we saw in the first round of the internet disruption.
02:04 Speaker A
And we’ve had some Netflix Bulls on two recently, Simeon, who say, you know, even if there is this material economic slowdown, they think Netflix is one of the more defensively positioned ones.
02:17 Simeon
It does seem like one of the last things you would give up. You’re stuck on the couch. You’re going to watch it. What are you going to do?
02:23 Speaker A
Thank. All right, let’s move on here. Check out shares of Rocket Lab. It’s taken a lift off today after the company landed new hypersonic business in the US and the UK. The US Air Force selected Rocket Lab’s haste launch to participate in a $46 billion contract, but the UK Ministry of Defense selected Rocket Lab for its hypersonic technologies and capability development framework, as a $1.3 billion program. So this one, okay, so the space company bottom line here. Here’s your headline, Simeon. They’re moving higher. Talking about hypersonic testing contracts, US and UK. I do see analyst at Stifel citing saying the announcement is another key milestone. They said that with this announcement they have access to long-term government contracts that extend through 2031. Impressed, they told clients with the team’s progress across several new high profile and potentially high value programs.
03:28 Simeon
If you ever wanted to be reminded of there’s no pure free market, this is it, right? You said it, government contracts. I mean, private companies, government contracts, there’s nothing pure out there. So it’s always tricky to value companies like this because so much of the business depends on government contracts.
04:01 Speaker A
Stock down around 20% this year, but a huge move over the past four months. And despite that, Wall Street optimistic, nine buys, five holds, zero sells on this one. All right, American Airlines, that’s our final one. Let’s get a look at that one. I get a boost today after the company announcing that it will launch free Wi-Fi for its rewards members starting in January next year. American Airlines is partnering with AT&T and said the service will be available on about 90% of its fleet by the rollout. So American Airlines, okay, so going to provide complimentary in-flight Wi-Fi sponsored by AT&T. CNN did note, you know, this is your experience, Simeon, that this is one of the few US based airlines still charging for Wi-Fi. They say Delta added free Wi-Fi on most flights in 2023. United apparently recently announced that its free internet will be powered by Via Sat Starlink. Uh, but the stock is higher today. It has been a rough 2025 so far though. I’m just looking stocks at about 40%.
05:07 Simeon
I thought I still paid eight bucks on United last week, but
05:11 Speaker A
Yeah.
05:11 Simeon
You and me both, my friends. Yeah. These are, look, airlines are cyclical. Obviously, they’re benefiting from low energy prices, but if there’s even any whiff of recession and any limitations in in cross-border travel, uh, you’ll see some pressure there.
05:28 Speaker A
By reporting results April 24th, and of course, we got united after bell today. All right, be sure to scan the QR code below to stay up to date with the best and worst performing tickers on the Yahoo Finance homepage.