Episode summary
Daybreak Weekend: Netflix Earnings, Davos Preview, China Data | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · Hosts: Nathan Hager
Summary
Investors are heading into a week where the focus is split between tech earnings, global politics, and China’s growth data. The host said Netflix and Intel will both report fourth-quarter results, with Netflix expected to show roughly 17% revenue growth, strong margins, and about $9 billion in full-year free cash flow, while also facing renewed scrutiny over its attempted Warner Bros. Discovery bid. The guest argued Netflix’s fundamentals remain strong, that it has meaningful pricing power, and that a price increase in 2026 looks likely.
Intel’s report is framed as a test of whether its turnaround is really taking hold. The guest said recent government, Nvidia, and SoftBank investments have stabilized the balance sheet, but the key question now is whether Intel can sell enough of its new chips, win outside foundry customers, and prove its manufacturing technology can compete with TSMC.
The episode also previewed Davos, where the big question is how global business leaders and governments respond to Donald Trump’s return to the forum and his pressure on trade, tariffs, and corporate behavior. On China, the guest said 2025 growth is likely to hit the government’s 5% target, but the bigger issue is whether export strength can offset weak domestic demand, deflation, and property-market stress in 2026.
Key takeaways
- The guest expects Netflix to post about 17% revenue growth and about $9 billion in full-year free cash flow.
- The guest said Netflix has pricing power and expects a price increase sometime in 2026.
- The guest said Intel’s balance-sheet risk has eased, but the core test is whether it can sell enough chips and win external foundry customers.
- At Davos, the host said the key issue is whether countries and companies push back against Trump’s trade and policy agenda.
- The guest said China is likely to hit its 2025 growth target, but 2026 depends more on trade, deflation, and domestic demand.
Notable quotes
“We think they will absolutely deliver on their revenue growth expectations of about 17%. strong operating margin, strong free cash flow”
“I absolutely think that a price increase is um you know on the books sometime in 2026”
“What those did was really shore up the balance sheet. So on that side of the house kind of task completed things are better than they were”
“The biggest maker of personal computer processors, opens its fourth quarter books on Thursday. Is the turnaround intact”
“China set out to achieve around 5% growth target for 2025 and it's looking very likely that it's going to hit that”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is Bloomberg Daybreak Weekend, our global look at the top stories in the coming week from our Daybreak anchors all around the world. Straight ahead on the program, we'll look to earnings from streaming and chip giants Netflix and Intel. I'm Nathan Hager in Washington. I'm Caroline Hka here in London where we're looking at the annual gathering of the powerful, the rich, and the famous in Davos, Switzerland.
I'm Doug Krnner looking at how Beijing will report the performance of the Chinese economy. That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 1130 New York, Bloomberg 991 Washington DC, Bloomberg 929 Boston, DAB Digital Radio London, SiriusXM121, and around the world on Bloombergradio.com and the Bloomberg Business app. Good day to you.
I'm Nathan Hager. Investors will be watching earnings from Intel and Netflix this week for signals on two very different corners of the tech landscape. We'll hear from Netflix first on Tuesday.
And for more on what to expect from the streaming giant, I'm joined now by Bloomberg Intelligence senior media analyst Githa Ranganathan. And Githa, I feel like there's been so much talk about Netflix's bidding war for Warner Brothers Discovery that it's been kind of easy to lose sight of the fundamentals. So, this will be kind of refreshing.
What are you expecting? Yeah, I'm really hoping we get a respite from this three- ring circus, Nathan. I mean, it's been going on for for quite a while now.
Uh, I hope the focus really turns and this is a distraction, you know, from this whole drama that we've seen. But fundamentals wise, you're absolutely right. The the company has never been in a stronger situation.
We think they will absolutely deliver on their revenue growth expectations of about 17%.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- netflix earnings
- intel earnings
- davos preview
- china gdp data
- week ahead market outlook
Companies and tickers mentioned
- NFLX
- INTC
- Netflix
- Intel
- World Economic Forum
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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