Netflix higher on potential Obama deal

Netflix rises on report Obamas may produce series of shows

Disney loss having minimal impact on Netflix subscribers. See Stockwinners.com Market Radar to read more
Netflix higher on potential Obama deal

Shares of Netflix (NFLX) are rising following a report that said the company is in “advanced negotiations” with former U.S. President Barack Obama and Michelle Obama to produce a series of shows.

POTENTIAL OBAMA DEAL

Former U.S. President Barack Obama and his wife Michelle Obama are nearing a deal with Netflix to produce a series of exclusive shows that will give them a global platform after their departure from the White House, the New York Times reported Friday.

Netflix higher on potential Obama deal. Stockwinners.com
Netflix higher on potential Obama deal.

It is not clear how much the Obamas will be paid under the proposed deal, which is not yet final, and the number of episodes and formats for the shows have not yet been decided.

Obama does not plan to use the shows to directly respond to President Trump or conservative critics but has talked about producing shows that feature inspirational stories.

The move comes as Netflix competes for viewers with Apple (AAPL) and Amazon (AMZN), which have also expressed interest in discussing content deals with Obama.

The company previously said it could spend as much as $8B on content this year. Eric Schultz, a senior adviser to the former president, commented that “President and Mrs. Obama have always believed in the power of storytelling to inspire.

Throughout their lives, they have lifted up stories of people whose efforts to make a difference are quietly changing the world for the better. As they consider their future personal plans, they continue to explore new ways to help others tell and share their stories.”

ANALYST COMMENTARY

Following the report of the talks, GBH Insights head of technology research Daniel Ives reiterated a “highly attractive” rating and reaffirmed his $375 price target on Netflix, citing optimism over the company’s original content initiatives, CNBC reported.

“We would characterize this as a ‘home run’ deal for the company as they are aggressively looking to acquire high profile talent and original content to further feed the Netflix consumer machine,” Ives said, adding Netflix is an appealing distribution platform for Obama due to its 120M subscribers.

In addition, the analyst said he believes the company remains in “a unique position of strength” to grow content and distribution over the next 12 to 18 months as well as further expand its content and streaming footprint with the potential Obama deal.

PRICE ACTION

Netflix (NFLX) shares are higher about 3%, or $9.17, to $326.17 in Friday’s trading.


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Mr. Broadcom goes to Washington

Broadcom pledges cooperation with U.S., sees U.S. ‘global leader’ in 5G 

Broadcom goes to Washington, Stockwinners.com
Broadcom goes to Washington

Broadcom Limited (AVGO) released an open letter to Members of Congress regarding its offer to acquire Qualcomm (QCOM), stating in part:

“We appreciate your interest in our offer to acquire Qualcomm Incorporated and would like to take this opportunity to respectfully address a number of issues with regard to this transaction and its potential impact.

Much of the recent communication about our acquisition has centered on concerns about the future development of 5G technology. To make it clear that we are steadfast in our support of 5G development, I recently made this public pledge: Broadcom is committed to making the United States the global leader in 5G.

Mr. Broadcom goes to Washington

Any notion that a combined Broadcom-Qualcomm would slash funding or cede leadership in 5G is completely unfounded. We have a proven track record of investing in and growing core franchises in the companies we acquire. In the case of Qualcomm, this will be 5G cellular.

We are fully committed to making the United States the global leader in 5G by focusing resources and strengthening leadership in this area. We also will work closely with the United States government as we drive to achieve and sustain this global leadership in 5G and beyond.

Consistent with that commitment, Broadcom is also pledging to create a new $1.5 billion fund with a focus on innovation to train and educate the next generation of RF engineers in the United States. This will ensure America’s continued leadership in future wireless technology.

In addition, Broadcom will not sell any critical national security assets to any foreign companies. Of course, any dispositions of assets to foreign buyers would be themselves subject to CFIUS review…

Second, I want to make it clear that Broadcom is today in every important respect an American company. We are built on the roots of several innovative and leading United States technology companies including Hewlett-Packard, AT&T, Broadcom Corporation and Brocade Communications Systems.

Broadcom is led by an executive team of American citizens and a Board of Directors made up of nearly all American citizens…T

he bottom line is that a combined, American Broadcom-Qualcomm will be a more focused and stronger champion for sustained United States leadership in 5G than a standalone Qualcomm, an outcome that strongly supports America’s national security interests.”


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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.