Buzzberg Cup Live

Netflix Earnings & Chipmaker Rout Hits Stocks on AI Worries | The Close 7/16/2026

Watch on YouTube ↗  |  July 16, 2026 at 22:11  |  1:33:40  |  Bloomberg Markets
Speakers
Alicia Reese — SVP of Equity Research, Wedbush
Jitania Kandhari — Deputy CIO, Solutions and Multi-Asset Group, Morgan Stanley Investment Management
David Steinbach — Hines Global CIO & Managing Partner
Venu Krishna — Head of U.S. Equity Strategy, Barclays
Ross Gerber — CEO, Gerber Kawasaki Wealth Management
Michael Pachter — Managing Director, Wedbush Securities
Evan Shapiro — Media Analyst
Romaine Bostick — Anchor, Bloomberg
Norah Mulinda — Market Reporter, Bloomberg

Summary

The S&P 500 and Nasdaq fell sharply as semiconductor stocks sold off on AI spending worries, while Netflix earnings missed estimates and guidance, sending shares down 8%. Guests highlighted selective opportunities in memory chips, real estate, data centers, and tech post-midterms, even as they debated Netflix's engagement and advertising monetization challenges.

  • Major indices slide, with Philadelphia Semiconductor Index down ~5% on AI investment jitters.
  • Netflix reports Q2 revenue slightly below consensus, misses on free cash flow, and guides Q3 below expectations; stock drops ~8% after hours.
  • Alicia Reese maintains a buy on Netflix, citing advertising ramp that can offset engagement plateauing.
  • Ross Gerber and Michael Pachter both argue Netflix is undervalued, with durable earnings and a large growing user base.
  • Evan Shapiro counters that Netflix is losing the attention war to TikTok/YouTube and is underperforming in ad sales.
  • Jitania Kandhari favors the memory sector within AI, expecting strong demand visibility for several quarters.
  • David Steinbach sees a buying opportunity in real estate and calls data centers a long-term AI-driven growth story.
  • Venu Krishna expects technology stocks to rally after midterm election uncertainty clears, based on historical patterns.
Ideas
Alicia Reese SVP of Equity Research, Wedbush 3:59
Ad growth offsets engagement plateau.
Netflix is losing the daily attention war to free platforms like TikTok and YouTube; its ad sales execution is poor (Hulu will generate more ad revenue on a fraction of the subscriber base). Excluding a one-time termination fee, revenue grew only 6% in H1 2026, and net income is plateauing, making the stock unattractive.
NFLX MED
Jitania Kandhari Deputy CIO, Solutions and Multi-Asset Group, Morgan Stanley Investment Management 13:09
Memory sector has strong demand visibility.
Memory is the real foundation of the token economy, with supply bottlenecks and strong capex-driven demand providing visibility for the next 6-8 quarters. Despite high positioning and stock runs, fundamentals support the sector.
DRAM MED
David Steinbach Hines Global CIO & Managing Partner 23:23
Real estate buying opportunity now.
The real estate market is in an era of supply shocks; development spreads are missing, which will constrain new supply and drive rent growth. This makes it a good time to be a buyer of real estate broadly.
XLRE MED
David Steinbach Hines Global CIO & Managing Partner 26:30
Data centers long-term growth story.
The data center sector is in early innings of a long-term evolution driven by AI, electrification, and increasing difficulty to build. The demand curve is deep and durable, supporting a strong growth opportunity.
DTCR MED
Venu Krishna Head of U.S. Equity Strategy, Barclays 40:36
Tech rallies after midterm elections.
History shows equity markets underperform in August and September of midterm election years, then rally after the election. The technology sector is likely to be the biggest beneficiary as uncertainty lifts and earnings growth remains supported.
XLK MED
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This Bloomberg Markets video, published July 16, 2026, features Alicia Reese, Jitania Kandhari, David Steinbach, Venu Krishna discussing NFLX, DRAM, XLRE, DTCR, XLK. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Alicia Reese, Jitania Kandhari, David Steinbach, Venu Krishna  · Tickers: NFLX, DRAM, XLRE, DTCR, XLK