📊 Netflix’s Crash

In partnership with

Happy Sunday!

Meta is now the cheapest name in the Magnificent 7.

• I published a 7,000+ word deep dive breaking down the business, the risks, and the valuation.

If you haven’t read it yet, set aside 15-20 minutes.

• It’s among the most thoughtful pieces of work I’ve written, and I’d genuinely value your feedback.

• At a minimum, you’ll come away with a deeper understanding of the company, the industry, and AI more broadly.

Key Data Bites From This Week:

• Morningstar shared its latest list of 33 undervalued stocks as of Q1 2026.

• Bank of America listed 25 stocks with AI exposure while avoiding bubble risk.

• Trump imposed a 25% tariff on certain AI chips.

• Trump imposed a 25% tariff on countries that do business with Iran.

• Meta is looking to double AI smart-glasses production to 20M units annually.

• Data center investments are expected to hit $3T over next five years.

• Apple has captured a world-leading 20% of the global smartphone market.

• OpenAI acquired health-care tech startup Torch for $60M.

• Wall Street had highest job cuts in nine years in 2025, totaling 10,700 jobs.

• China reached a record $1.2T trade surplus last year.

• Porsche sales fell the most in 16 years on weak China demand.

• Spotify increased its U.S. subscription prices for 3rd time in 3 years.

• Core inflation increased at a 2.6% annual rate, less than expected.

Earnings & Guidance:

• Delta Air Lines forecasted 20% earnings growth in 2026.

• Goldman Sachs saw equities trading revenue surge 25%.

In today’s newsletter:

• 📈 15 Stocks With Fast Growing Dividends

• 📉 Netflix’s Bear Market

• 🏛️ JPMorgan Is Massive

• 🏭 Taiwan Semi’s Blowout Profits

• 💰 BlackRock’s Record $14T AUM

Let’s jump right in.

📣 Together With The Investor’s Edge

Investing isn’t about reacting faster.

It’s about understanding what actually matters, and recognizing it before it becomes obvious.

The Stock Investor’s Edge helps you cut through the noise with deep research, clearly explained investment and options ideas, and ongoing market context.

If you want to make calmer, more confident decisions grounded in research and process, this community is built for you.

👉 See what The Stock Investor’s Edge is all about.

Dividend growth matters more than most investors realize.

Since 1957, dividend growth for the S&P 500 has averaged around 6% per year, and dividends have contributed roughly 31% of the index’s total return.

• Consistent dividend growth helps preserve purchasing power and acts as a long-term inflation hedge.

While many investors who opt to invest in individual stocks chase high dividend yields, the real opportunity often lies elsewhere.

• High yields can signal maturity and may not be sustainable.

• Companies growing dividends rapidly are often earlier in their lifecycle, moving up the S-curve with strong revenue and earnings growth to support future payouts.

Among U.S. companies with market caps above $1B, many of the fastest dividend growers cluster in the $1B to $10B range.

• These names are frequently overlooked by both retail investors and institutions

Netflix is facing its toughest episode in years.

Shares are experiencing their largest drawdown since 2022.

There are two main reasons.

First, Netflix reported a surprise earnings miss in Q3 driven by a one-time $619M tax charge tied to a dispute in Brazil.

• Excluding that item, the core business remained solid and revenue met expectations.

The bigger concern is Netflix’s proposed $83B acquisition of assets from Warner Bros. Discovery.

• The deal would add roughly $50B in new debt and require issuing nearly $12B in new equity, diluting existing shareholders.

Netflix is also locked in a competitive bidding process with Paramount Skydance, raising the risk of losing the deal altogether.

• Even if Netflix prevails, antitrust scrutiny could still block the transaction.

• A failed deal could trigger a breakup fee of up to $5.8B.

On Tuesday, Bloomberg reported that Netflix is considering restructuring the bid as an all-cash offer.

• Such a move would remove equity dilution risk and give Warner Bros. Discovery shareholders clearer price certainty.

Bank stocks pulled back this week as investors sold the news.

JPMorgan delivered a massive $13B profit, driven by record results in payments and trading.

• Shares still fell after a $2.2B charge tied to the Apple Card portfolio and Jamie Dimon’s cautious commentary around sticky inflation.

Bank of America posted a 12% increase in profit, with record digital engagement and investment banking fees reaching five year highs.

• The stock declined as investors weighed the impact of potential regulatory caps on credit card fees.

Wells Fargo beat earnings expectations thanks to the Fed removing an asset cap on the bank, enabling it to reach its 15% return target.

• However, shares fell following a revenue miss and elevated severance costs from ongoing job cuts.

Citigroup surpassed profit forecasts, posted an 84% jump in financial advisory fees, and returned $18B to shareholders, its largest payout since the pandemic.

• That strength was offset by a $1.2B loss from its Russia exit and weaker revenue due to the bank’s complex restructuring.

Zooming out, the gap is clear.

• JPMorgan is now valued at nearly the same level as Bank of America, Wells Fargo, and Citigroup combined, while generating comparable net income.

AI demand isn’t slowing down.

Taiwan Semiconductor reported its highest quarterly profit ever, with net income jumping 35% to $16B, well above expectations.

• Revenue climbed 26% YoY to $33.73B, reflecting continued strength in advanced AI chip demand.

• Management expects momentum to persist, guiding to roughly 30% revenue growth for the year, in line with forecasts.

To meet that demand, the company signaled a major step up in spending.

• Taiwan Semi now expects $54B in capital expenditures this year, far higher than prior expectations.

• Leadership reiterated strong conviction in the AI megatrend, clearly visible with its accelerating investment across Taiwan and the U.S.

• The results helped ease fears of an AI slowdown, lifting Taiwan Semi shares and the broader chip sector on the week.

Separately, the U.S. and Taiwan signed a new trade agreement reducing U.S. tariffs on Taiwanese goods to 15% from 20%, alongside $250B in planned Taiwanese investment into U.S. semiconductors and AI infrastructure.

BlackRock just got even bigger.

The world’s largest asset manager reported a standout quarter, with assets under management reaching a record $14T, up 22% YoY.

• The milestone was driven by $342B in net inflows during Q4, the strongest quarter of client flows in five years and well ahead of expectations.

Financial results followed.

• Adjusted earnings rose 10% to $13.16, while revenue jumped 23% to $7B, both beating analyst estimates.

• With momentum accelerating, BlackRock increased its quarterly dividend by 10% and authorized the repurchase of 7M additional shares under its existing buyback program.

CEO Larry Fink summed it up simply.

• BlackRock enters 2026 with the strongest inflows year and quarter in its history.

📣 Presented by Google AdSense

Easy setup, easy money

Making money from your content shouldn’t be complicated. With Google AdSense, it isn’t.

Automatic ad placement and optimization ensure the highest-paying, most relevant ads appear on your site. And it literally takes just seconds to set up.

That’s why WikiHow, the world’s most popular how-to site, keeps it simple with Google AdSense: “All you do is drop a little code on your website and Google AdSense immediately starts working.”

The TL;DR? You focus on creating. Google AdSense handles the rest.

Start earning the easy way with AdSense.

Earn with Google AdSense

Notable Companies Reporting Earnings Week of January 18th, 2025:

Buys

• Gil Cisneros (D)

  • Company: Campbell Soup Co ($CPB)

    • Amount Purchased: $50K - $100K

Sells

• Tommy Tuberville (R)

  • Company: Apple ($AAPL)

    • Amount Sold: $50K - $100K

• Steve Cohen (D)

  • Company: Morgan Stanley ($MS)

    • Amount Sold: $50K - $100K

Buys

• Micron ($MU)

  • Insider: Teyin Liu (Director)

    • # of Shares Purchased: 23,200

    • $ Amount: $7,821,723

    • SEC Forms: [1]

• Strategy ($MSTR)

  • Insider: Carl J. Rickertsen (Director)

    • # of Shares Purchased: 5,000

    • $ Amount: $779,395

    • SEC Forms: [1]

Sells

• CoreWeave Inc ($CRWV)

  • Insider: Brannin McBee (Chief Development Officer)

    • # of Shares Sold: 154,835

    • $ Amount: $13,745,736

    • SEC Forms: [1], [2], [3]

• Roku Inc ($ROKU)

  • Insider: Anthony Wood (CEO)

    • # of Shares Sold: 75,000

    • $ Amount: $8,220,734

    • SEC Forms: [1]

• Rocket Lab Corp ($RKLB)

  • Insider: Merline Saintil (Director)

    • # of Shares Sold: 96,000

    • $ Amount: $8,311,680

    • SEC Forms: [1]