Netflix’s relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with almost 250 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm recently began introducing ad-supported subscription plans, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.

On Friday, the Bureau of Labor Statistics (BLS) likely will provide further evidence that the U.S. job market is healthy. The bigger question is whether the Employment Situation is strong enough to match the 333,000 nonfarm jobs created in December and the 353,000 in January. We believe the job market is strong, but not that strong. In a speech at Princeton University last month, Fed Governor Lisa Cook said that "a range of indicators suggest continued strength in the labor market but also areas worth monitoring for softening demand." The layoffs that make occasional headlines really aren't showing up in the numbers. The four-week average of initial jobless claims is running at 212,500, below the 300,000 that might signal a critical weakening in the job market. The Layoffs and Discharges series in the BLS Job Openings and Labor Turnover Survey (JOLTS) was 1.6 million for December, below the average of 1.925 million since late 2000. "Layoffs and claims for unemployment insurance remain low, implying that all the slowing in labor demand thus far has been along the hiring margin," Dr. Cook said. Job openings and hires, in the JOLTS report, and average weekly hours, in the employment situation report, have declined. Dr. Cook also noted there were signs of "gradual cooling" in the employment cost index for the private sector, which rose 4.1% on a 12-month basis in December, down from 5.1% over the previous 12 months. The January ADP National Employment Report, which tracks private sector hiring, also noted that pressure on wages continues to ease. We expect the employment report on Friday will show that February payroll growth moderated to 185,000, while the unemployment rate remained at 3.7%. We expect growth in average hourly earnings fell by one-tenth to 4.4%, and average hours rose to 34.3 from 34.1, which may have been depressed by January weather.

Stock indices dipped in October 2023, with the S&P 500 falling a sharp 10% off summer highs. Looking at 13F filings of big institutional portfolios, we see that the big guns were busy last quarter taking advantage of that dip. Citadel Advisors went on a buying spree, adding to its $100 billion portfolio across a range of sectors. As did D.E. Shaw, adding to its $67 billion portfolio. Vickers Stock Research, a subsidiary of Argus Research Group, analyzes insider trading and institutional stock ownership. Form 13-Fs, which institutions must file to report their holdings, are due 45 days after the end of calendar quarters and have come in for 4Q24. We review 13Fs of major activists to determine core holdings and new purchases. Activist investing is now less about generating a short-term return and more about achieving long-term returns through an active management/investor partnership. Based on data from Vickers, here are some recent new purchases and key holdings of activist investors, as well as other high-profile money managers.

Netflix is a video-on-demand distributor of movies and television shows over the internet worldwide (except China and a few other countries). Subscribers have access to the Netflix content library for a fixed monthly subscription fee. The company offers several service tiers, including a discount advertising-supported service. Netflix derives almost 60% of its revenue from outside the U.S.