Latest / The Curve / TCW3: Travel getting cheaper (yay!), Google cutting staff and Netflix making a comeback

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TCW3: Travel getting cheaper (yay!), Google cutting staff and Netflix making a comeback · The Curve

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  Progress is part of Audi's DNA and as a brand they're leading the way in premium electric
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  created together to help you reach your savings goals.
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  Hi and welcome to the Curve Weekly. The podcast that keeps you up to date with all the money,
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  business and stock market tea. For the record, feminism by definition is the belief
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  that men and women should have equal rights and opportunities. Everyone should experience
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  for us at least once in their lives and Annie shouldn't miss out just because she can't
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  afford it. Help me own poor life. She doesn't do some hype music before we start.
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  I must say I was thinking on my way here with absolutely shot ourselves in the foot by
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  being like Monday morning the Curve Weekly because we have to record this on a Sunday night
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  or a Monday morning and yesterday Vick went out on a boat and I had a wedding and I was
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  coming back from Omaha just falling asleep in the back seat like how am I going to
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  perk up for podcast recording. It's funny when you, because I was about to message you
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  being like, oh baby, don't think I'll be back for our podcast record and the new message
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  being like, hey back, I was like, yes. It's going to happen every weekend. It's going
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  to be a Sunday and we'll be like, oh, should we move into Monday?
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  I'm not sure which is better having to be perky at 7 a.m. on a Monday morning. Maybe
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  a rain in my weekends, you know? Oh, yeah. Or maybe not. I don't like it. I actually
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  thought yesterday when we were recording on the Sunday afternoon, I thought it'd be pretty
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  because we're the day after, the wedding day after and I thought it'd be quite funny if
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  I rolled in here like a little bit steamed. It's like a me quiet cracker. It's a tequila
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  in hand. Were you the only single girl at this wedding? No, there was, there were, oh,
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  actually, potentially there was lots of pregnant people. Yeah, oh my God, actually, you
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  don't want so funny. Yeah. So someone who held my hand while we were dancing is someone
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  that you've definitely had sex with in the last like month and I was like, what is happening
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  here? I had to like, yeah. I had to like, suddenly leave the dance room and I was like, that's
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  really inappropriate. Oh, gosh. In the way that will make you dance. Oh, yes. So the markets.
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  So we had another good week in the US market last week. So why are they good at the moment?
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  I feel like it's just, it's so great that they're starting the year being like, yes,
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  yeah, yeah. So it's, it's, it's a combination of good company results because it's earnings
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  season in the US as well as less bad economic news. And we talked last week about the banks
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  coming out and saying that their recession might be more mild, not as bad. All that kind
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  of stuff is playing into this optimism. Okay, great. I mean, I'm here for it. Yeah,
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  the stock market's like, yeah, yeah, me. I can start positively positive mindset. Yeah.
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  Yeah. And what about the other indexes in around the world? Yeah. So good question. You haven't
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  done your research, have you? Always just looking at the US might be. Good question. No, but the US.
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  So the S&P 500 was up marginally last week, about 0.3% but the NASDAQ. So that's the growth
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  one, the tech companies. That was up 2.3%. That's quite a big difference among the indexes. And
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  that was all off the back of the lot of these tech names doing well. So we had Google did really
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  well last week, which is actually called alphabet is the parent company. They announced a whole
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  lot of job cuts, which you kind of might be sitting there going, isn't that a bad thing?
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  But they announced plans to cut 12,000 employees, which is 6% of its workforce. And not 12,000,
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  but only 6%. And what about a major being in the HR department company? Yeah.
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  Hi, Mary. Yeah. You've never done it. Cool. Thanks. Hi, Joyce. Yes, you've never done it.
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  What is with your names? Oh my God. Every time I guess come with a fake name, it's like
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  not that there's anything wrong with the name Joyce, but like do you know one person who
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  Joyce? Where does it come from? I don't know if it was creative brain. Okay. So that's your job.
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  Oh, dear God. Yes. So and then also we had Netflix as well. So that's why Netflix is in the
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  NASDAQ. Microsoft is in the NASDAQ. So that's kind of why that index is done really well versus
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  the more general index. If we start with some company news, so we had United Airlines,
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  which I think I flew on that maybe. Yeah. Yeah. Yeah. So the Americans. Yeah. This is an American
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  airline. They had a really good result. And it was well above what the market had been expecting.
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  And this is all the off the back of strong demand for air travel, despite ticket prices being
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  absolutely crazy at the moment. People are still wanting to travel. But it's all with airlines,
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  it's all around capacity growth now. So that just means that how many airplanes they can bring on.
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  So there's obviously demand is there. It's more like the supply or the seats aren't really there
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  because the airplanes have been, you know, out of action for so many years and they're trying to
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  bring them back online quickly. So as soon as that happens, then this will also be really good
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  for us because we won't need to pay as much. Oh really? Yeah. So it's okay. So I only put that part
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  of the thing. I thought you kind of dropped out of it. Well, I was just a bit bored. I was like,
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  do I care about United? I don't think so. I know that I knew this would happen. So yeah,
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  we're kept to the fun parts about the netflixes and the goggles, but we've got it. Okay. Sorry,
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  but can you explain how your ticket price is going to go down based on what you just said? I don't
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  know. So if we rewind back to COVID, people weren't traveling. So a lot of these airplanes were put
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  were put on hold or put in hangars and God knows where in and I know. Yeah. And not use because
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  there wasn't a demand. And then the thing with airplanes is you have to fly them often.
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  It's like cars. Exactly. Exactly. And then they have to go through all this tests and everything and
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  there's probably pilots listening on the call wing. That's not what we do.
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  I'm listening on the call. Yeah, I'm just going to call you out on that. I was like, I'm not sure.
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  Well, that's good. But we'll leave it. Anyway, and so they now that the demand is there. So people
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  were wanting to travel. People are like, yes, I want to go to Europe. Yes, I want to go to
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  Pacific Islands, wherever. But there's just not the planes because they've cups all that supply,
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  all the airlines have. What do you mean? Did they just throw a few planes in there? No, no,
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  they just put them put them away in the desert somewhere and they hang out there because there
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  wasn't anyone flying. So there's always planes sitting in the desert. There's always planes sitting
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  in the desert. Are you making this up? And they had to cut pilots, you know, they had to let all
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  these pilots go and then now they've found other jobs, a lot of them and they have to retrain
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  them. You know, so there's all you can't just turn it on and turn it off because people want to fly.
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  So even though the demand's there, the supply of pilots, planes, you know, other staff is not there.
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  And so as soon as that, the quicker that that can come back online, the quicker those ticket
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  prices can come down because it's all about supply and demand. So we're seeing this with not just
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  united airlines. We're seeing this with a New Zealand, a New Zealand, obviously.
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  Today is not a holiday. It is not our day.
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  Thank you for explaining that for me. Yeah, that was good. Quantas and Australia,
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  we're seeing all those airlines as well doing really well. So it's kind of this function of
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  they're all generating really, really strong revenue because of those higher ticket prices and
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  people wanting to travel. And we also had Netflix, which was up really, really strong on Friday.
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  Goodness for that. Yeah. So it's up nearly 9% on Friday when it released its financial result.
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  Now this stock is up nearly 60% now in the last six months.
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  So we've been talking about how Netflix had fallen off the cliff and the toilet.
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  Yeah. Last year it had fallen from around $700 to about $170. And now it's back to about $340.
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  So it's still well below where it was, but it has, you know, it's definitely making a comeback.
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  It's strapping its boots on, tying up the health. And the next question might be,
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  well why Vic? Oh sorry, I thought we were moving on because I was just looking at the time thinking,
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  we better, you know, we were nearly, yeah, we nearly there. Yeah, sorry. So keeping you up.
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  I need to head back to bed, actually. No, sorry. Why is this stock?
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  Vic, tell me why is it up to my question. Thank you.
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  Well, it's all around them just gaining more subscribers than they thought. So they had this
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  big increase in subscriber growth during COVID. And then there was obviously a lot because,
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  you know, once you got Netflix, you don't really need to get it again. And so it's,
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  and so everyone thought that the business case was kind of was was was done and dusted or like,
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  you know, the growth wouldn't be there because because they've had this extraordinary growth.
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  And now there's going to be a big, big low or they've got all their subscribers and there's
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  not more. And so when they came out with a number that added nearly eight million subscribers
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  in that three months to the end of December. Holy shit. Yeah. And the expectations was that they
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  were going to add four and a half million. So they like smashed it out of the park. And they've now
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  got 230 million subscribers. Do you know comparatively to other like Disney plus? So what's the difference?
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  So Disney, they're pretty much of a muchness like it kind of swings around about
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  that surprises me to be honest. Yeah. That Disney plus is managed to come and like all not
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  necessarily overtake, but be on par in terms of subscribers. That's amazing to them. Yeah,
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  so Disney owns like Hulu and a few others. So it's kind of all lumped together. But I mean,
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  they have done fantastically well. And there's a lot of skeptics being like, oh, they, you know,
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  you've got Netflix. Why would you have Disney or vice versa? But the other key thing about the
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  Netflix result was that the co-founder Reed Hastings is stepping down from CEO. So that would be
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  a bad thing in a general sense, but he is staying on as chairman. So that means he will have some
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  involvement in the business. And he's still, he's still on shares, but it's not selling any shares
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  will it is? Well, that is always a risk. They never come out and say, I'm leaving a CEO and we're
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  going to sell all my stock because the share price will just be like, see you. But don't you
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  have to, isn't that legal? Yeah, yeah. So they'll have to, they'll have to disclose the stock
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  exchange. I've sold this many shares because you're what you call a substantial shareholder. So
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  if you're actually a holder, then you have to let me so could you stop it, please? We're trying
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  to record a podcast. Yes, thank you. And so looking forward next week, we have my favorite
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  Microsoft. Oh my gosh. Are we leaving a party? We should. Well, we'll see. See what kind of result.
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  What would you dress up as? Oh, a laptop. You actually, at some point in your life,
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  are going to have to dress up as a Microsoft computer. Or maybe I'll dress up as a keyboard?
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  Yeah. So for anyone who is listening to this podcast for the first time, for say apologies,
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  normally we're a little bit, you know, more perky, more perky and just like better chat,
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  but that is obsessed with Microsoft. Like it is her one true love, I would say.
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  Really a big fan. Yeah, maybe I'll name my first kid. Microphone, microphone. Oh my,
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  but back to the stock market. No, we have next week we've got Tesla, Microsoft,
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  Visa, Mastercard, Johnson, Johnson, but there's lots of lots of companies. Okay, well thanks,
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  Vick. Very helpful. Good day. Probably won't be recording at this time ever again. Sorry,
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  everybody. If you are falling asleep to this podcast. But we have our curved classroom starting
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  which is kind of, yeah, it's a bit of a tease. We're being teasers. Okay, thanks guys. Okay, bye.
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