Netflix earnings are about how it plans to navigate its next chapter: Capital Wealth's Kevin Simpson

Watch on YouTube ↗  |  January 16, 2026 at 20:58  |  5:23  |  CNBC
Speakers
Kevin Simpson — Investment Committee Member

Summary

Kevin Simpson, founder and CIO of Capital Wealth Planning, discusses Netflix ahead of earnings, focusing on the Warner Bros. Discovery acquisition, live sports/advertising/podcast strategy, and the stock's near-term range-bound setup. He remains a long-term Netflix bull and sees the recent pullback as a buying opportunity, though he expects little near-term progress without acquisition clarity. Simpson also explains why he initiated a Delta Air Lines position after its post-earnings selloff and briefly praises Spotify amid Netflix's podcast push.

  • Kevin Simpson previews Netflix earnings and the Warner Bros. Discovery acquisition debate.
  • Simpson remains long-term bullish on Netflix and sees the pullback as a buying opportunity.
  • Netflix may hover near current levels until there is acquisition clarity.
  • Simpson views Netflix live sports, advertising, and podcast expansion as margin-accretive.
  • Simpson initiated Delta Air Lines, citing solid results, free cash flow, and best-in-class front-of-plane margins.
  • Simpson says Spotify remains strong and Netflix's podcast push likely does not hurt it much.
Ideas
Kevin Simpson Investment Committee Member 1:58
Buy Netflix pullback for long-term upside
Simpson is a Netflix shareholder who loves the stock long term. He views the Warner Bros. Discovery acquisition as highly accretive because franchises such as Harry Potter, Game of Thrones, The Sopranos, and DC could thrive in Netflix's ecosystem, and he sees the push into live sports, advertising, podcasts/iHeart, WWE, boxing, and NFL as smart and margin-accretive. The key near-term catalyst is management's commentary on the acquisition during the earnings call; without clarity the stock could hover around current levels for 12-18 months, but he sees the 25-30% pullback as a buying opportunity.
NFLX HIGH
Kevin Simpson Investment Committee Member 3:42
Spotify stays strong despite Netflix podcast push
While discussing Netflix's podcast/iHeart acquisition, Simpson calls Spotify a fantastic company and says he does not think Netflix's podcast move eats into Spotify too much; he sees it more as broadening Netflix than materially threatening Spotify.
SPOT LOW
Kevin Simpson Investment Committee Member 4:28
Bought Delta on free-cash-flow mispricing
Simpson initiated a Delta Air Lines position in his growth strategy after what he considered a solid earnings report and a selloff driven by tepid guidance. He thinks the market may be misreading the free-cash-flow story, with roughly $3 billion of free cash flow being a big deal. Delta is best-in-class at front-of-plane profit margins, levered to business and international travel, has largely put its debt problems behind it, pays a dividend, buys back stock, and is fiscally responsible. Energy costs remain a risk to watch.
DAL HIGH
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This CNBC video, published January 16, 2026, features Kevin Simpson discussing NFLX, SPOT, DAL. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Kevin Simpson  · Tickers: NFLX, SPOT, DAL