RIP Netflix and Chill

Today is Thursday, July 14, 2022.

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RIP Netflix and Chill: Ads Are Coming

Netflix (Nasdaq: NFLX) is teaming with Microsoft (Nasdaq: MSFT) for its ad-supported subscription plan, the streaming platform said Wednesday.

Details: The idea is to give marketers access to the Netflix audience. All of the ads on Netflix will be served exclusively through Microsoft's platform.

Alliance: Netflix said in a statement that it selected Microsoft because of its “proven ability to support all our advertising needs” and for its flexibility to innovate on technology and sales. The company also cited Microsoft’s strong privacy protections.

Background: Netflix first publicly introduced the idea of adding a lower-priced ad-supported plan back in April. The streaming giant is known for having no ads, but with the number of subscribers dwindling and the number of streaming competitors increasing, Netflix needed to explore the ad-supported strategy.

Big Picture: Meanwhile, Microsoft cut its guidance in June. The company needs help, and this partnership is a positive step in the right direction.

Numbers: Shares of Netflix are down 70% in 2022. Microsoft’s stock is down 24% this year.

Final Thoughts: Having ads on Netflix might be a tough pill for consumers to swallow, but it is good news for investors.


Notable Earnings Today: JPMorgan Chase (NYSE: JPM), American Outdoor Brands (Nasdaq: AOUT), Morgan Stanley (NYSE: MS), Engine Gaming and Media (Nasdaq: GAME), Taiwan Semiconductor Manufacturing (NYSE: TSM), Ericsson (Nasdaq: ERIC), Conagra Brands (NYSE: CAG), Cintas (Nasdaq: CTAS), First Republic Bank (NYSE: FRC), Organigram Holdings (Nasdaq: OGI), Theratechnologies (Nasdaq: THTX).

Notable IPOs Today: Virax Biolabs Group Ltd (Nasdaq: VRAX).

Notable Equity Crowdfunding Campaigns Ending Today: Nebulai (Netcapital), Synthesis (Wefunder), GoSun (StartEngine), Manhattan Brewing Company (SMBX).

Notable Economic Events Today: Jobless claims (8:30 a.m. ET), Producer Price Index (8:30 a.m. ET).

FDA Authorizes Novavax Covid Vaccine

Photo by Mufid Majnun / Unsplash

Shares of Novavax (Nasdaq: NVAX) ticked down 0.79% in after-hours trading on Wednesday after the U.S. Food and Drug Administration (FDA) issued an emergency use authorization (EUA) for the biotech company’s Covid-19 vaccine.

Background: Novavax's Covid-19 shot is a two-dose vaccine for adults and it uses protein-based technology. It’s the first new Covid-19 vaccine in over a year. It was supposed to come out last year, but there were some hiccups.

Final Thoughts: Shares of Novavax are down 51% this year. In June, an advisory panel with the FDA recommended the company's Covid-19 vaccine for approval.

Equity Crowdfunding Spotlight: Normal Finance

Briefly describe your business. Normal is a neobank empowering crypto investors with zero-fee fiat to crypto trading, instant trade settlement, and seamless on and off ramps with your favorite banking features like direct deposit, a debit card, and ATM access.

What are the terms of the investment for your campaign? SAFE at $2.5M cap no discount for first $75,000, SAFE at $3M cap no discount for any capital after $75,000 raised. Find out more at Wefunder.

What makes your startup special? Why will it succeed? We're the first to directly combine the convenience of digital banking with a wildly better crypto experience. We're currently at the Antler startup accelerator in Boulder, CO. Our team has over 12 years of experience with crypto trading and fintech.

Trends to Watch

Your Turn, Jerome: Hot Inflation Report Puts Pressure on Federal Reserve (The Wall Street Journal)

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