Who Won Helsinki? Trump, That’s Who
Dear Rundown Reader,
Who won in Helsinki? Trump or Putin? Why the media backlash? So many questions here. We’ll unpack it all later this week.
A reader letter caught our eye last week. It captures the trade / tariffs mood perfectly. This reader writes:
“I’m glad tariffs are going into place. First, everything we buy is made in China. Secondly, the U.S. has been ripped off by every nation on earth with them paying minimal and us paying maximum tariffs.”
Trade is complicated business. Make a move to protect one industry, you can cut three more off at the knees. Write in and tell us – what’s the ideal trade environment?
One where America “wins” or one that is fair to all?
Ray Blanco spent the day in Baltimore yesterday with your editor, preparing for his announcement coming up this Friday, July 20 at 4pm EDT.
Ray calls what he’s found the “World’s Fastest Fortune” and he’s nearly ready to show you how one tiny company could explode to a $100 billion valuation faster than any company in history.
PLUS… Ray’s found a way you can get free shares of this company. As many as you want, in fact.
It’s the biggest story you’ll see from Ray all year. More details coming…
Your Rundown for Tuesday, July 17, 2018:
Netflix Pays the Piper
Netflix (NFLX: NASDAQ) shares closed yesterday at $400.48.
In after-hours trading, as smarties started going through the company’s “weaker-than-expected” second-quarter revenue, the bottom fell out.
Pre-market NFLX sits at $348.88, down $51.60 a share, or 12.88%.
The Wall Street Journal, Bloomberg, MarketWatch, CNNMoney, CNBC – everyone and their brother – are scrambling this morning to explain what’s going on.
We’ll save you the time.
NFLX’s subscriber growth is slowing down.
The company’s also spending a TON of money on original content.
And a “strong dollar” hurt international revenue.
Add those factors together, you get “one or two quarter issues where they’re white knuckle periods in the very near term,” according to analyst Daniel Ives speaking to MarketWatch.
You like NFLX or you don’t. They have tens of millions of Americans held captive for content.
From here, NFLX monetizes existing subscribers better, they release new features and widgets, and maybe buy a television network or movie studio.
No, we’re not being flip. The chart says it all.
Granted, when markets open this morning, this chart will look ugly, but here’s NFLX year to date:
When NFLX has a bad quarter, day, or after-hours session, it’s just cheaper.
NFLX leads in the future of content.
We of course reserve the right to revisit this conclusion in the weeks ahead if this blip of a quarter turns into a bloodbath.
Turning to the markets…
Market Rundown for Tues., July 17
The 10-Year Treasury this morning: 2.855%. Are you ok with your money being forced into stocks after a decade and a half of reckless central bank policy?
That’s a loaded question. Send us email about tariffs, not central bank policy.
S&P 500 futures are at 2,793, down 3.25.
Oil’s at $68.04.
Gold goes for $1,240, up $1.20.
Bitcoin. Signs of life. Call off the funeral. Bitcoin goes for $6,702.
We’ll talk again tomorrow.
For the Rundown,