💪 Netflix flexes its gains

…and Big Banks’ earnings wrap   Hut, hut, price hike (Randy Shropshire/Getty Images)   [Sponsored by]( Yesterday’s Market Moves   Dow Jones 33,414 (-0.75%) S&P 500 4,278 (-0.85%) Nasdaq 13,186 (-0.96%) Bitcoin $28,620 (+1.04%) Dow Jones 33,414 (-0.75%) S&P 500 4,278 (-0.85%) Nasdaq 13,186 (-0.96%) Bitcoin $28,620 (+1.04%) Hey Snackers, [Citibank]( isn’t messing around with employee meals: it [fired]( one of its analysts after he expensed two sandwiches and two coffees for himself and his spouse on a work trip, and then claimed he’d consumed them himself (“they were very small”). In a wrongful-dismissal suit, a judge ruled in Citi’s favor. Stocks fell after Fed Chair Powell said he didn’t think rates were too high, and that the economy and labor market would likely need to cool to bring inflation down to the central bank’s target. 🧠Biz-whiz quiz: Take our latest [Snacks Seven quiz]( to test your knowledge of the news we covered this week. In case you missed the last one, this does count for extra Snacks credit. Flex After its biggest subscriber gain since 2020, Netflix continues to flex its pricing power ’Flix flex… [Netflix]( is back in #GainzMode. The streamer [smashed]( growth expectations, adding 8.8M global subscribers last quarter, 3M+ more than Wall Street expected. It’s Netflix’s biggest quarterly net subscriber gain since the lockdown boom of 2020, when it added 10.1M homebound viewers in the second quarter. Revenue and profit grew last quarter as Netflix’s password-mooching crackdown paid off (and lured your ex to finally get their own account). Netflix’s new ad-supported tier also seems to have been a good play, for two reasons: - Accessible: Netflix’s ad-plan members grew 70% quarter over quarter as budget-conscious Americans were drawn by the cheaper option (starts at $7/month). - Profitable: While ad tiers cost less, they tend to have better profit margins than costlier ad-free subs. It’s why streamers like Netflix, [Disney]( and [Warner Bros. Discovery]( are trying to steer customers toward those plans. Pushing its limits... Despite the strong growth, Netflix announced it’s going to raise prices again for some of its plans. Its ad-free premium plan will rise from $20/month to $23. Netflix’s basic plan (which was discontinued except for existing customers) will rise from $10 to $12 (possibly to drive customers to the cheaper ad tier). There hasn’t been much new content on Netflix since the Hollywood strikes, so it’s a bold move to keep raising prices. THE TAKEAWAY Range gives you pricing power… so does popularity. Netflix’s growth last quarter, coupled with its status as the streaming leader, gives it confidence that it can pull off price hikes without losing subs. But it’s also a matter of giving customers options: Netflix’s US monthly plans range from $7 to $23, a wide spread for different budgets. The company said its US starting price is “extremely competitive.” And if folks do move down to the ad tier, it could mean better margins. Sponsored by Rocket Mortgage Student loan blues? Leverage the equity in your home. Fresh squeeze… Student loan payments are resuming after a 3.5 year hiatus, jeopardizing the financial well-being of the 43M Americans, who owe an average of $400 per month. A little less loan-ly… If you’re having trouble balancing your student loans with your mortgage payments and rising expenses, Rocket Mortgage has you covered. Rolling your student loans into a mortgage can make it easier to manage your finances, especially as a new homeowner.* The takeaway: If you’re struggling with student loans, [Rocket Mortgage]( can help you save thousands. Plus, Snacks readers can get [$1,000 off of closing costs]( ChargedUp Big Banks’ earnings wrap 🏦 Main Street POV…[JPMorgan Chase]( Citibank, [Bank of America]( and [Wells Fargo]( topped Q3 estimates as higher interest rates lifted bottom lines. Chase (America's biggest bank) saw profits soar 35% after record net interest income (what it earns from interest on loans and deposits, minus what it pays out for savings accounts). Wells Fargo’s revenue jumped 6.5% as higher interest rates helped offset cooling lending activity. As America’s debt balloons, WF set aside $333M in case of defaults on credit cards and commercial real-estate loans. 🏦 Wall Street POV… Investment-focused [Morgan Stanley]( and [Goldman Sachs]( topped expectations, though profits were down from a year ago as dealmaking slowed (fewer mergers, slumping IPOs). Morgan Stanley shares fell 6% after its wealth-management and investment-banking revenue came in short of analysts’ forecasts. Goldman Sachs balanced a slowdown in investment banking with revenue growth in equities and bond trading. ➡️ Forward POV… While banks could keep benefiting from high rates, surging Treasury yields could mean lofty unrealized bond losses. US consumer-spending growth smashed expectations last month, boding well for banks, but debt has also swelled, posing more risk. IPOs have started a comeback, but the biggest debuts of 2021 have shed over half their value. JOES The Crypto Catch-Up… 🪙 Coins… Reddit said it’s [ending]( its blockchain-based community points system, citing the “regulatory environment.” The decision plunged the price of the linked moon and brick tokens, and angered Reddit’s crypto community. 🌶️ Spicy… New York’s attorney general sued the Winklevoss-owned crypto exchange Gemini, crypto-lending platform Genesis, and Genesis’ parent co, DCG. The suit argues that the three [defrauded]( over 230K customers out of $1B+. 🤹‍♀️ Quirky… Speaking of suits, grocery star Trader Joe’s [sued]( a DeFi platform, alleging trademark infringement. The issue: the decentralized exchange, the 11th largest by trading volume, is called Trader Joe. What else we're Snackin' - [Brake]( Ford is laying off 150 more workers after furloughing 2.5K+ as the UAW strike hits the 35-day mark. Through last week, the strikes have led to $7.7B in total economic losses. - [Shipped]( Tesla set November 30 as the delivery date for its long-hyped Cybertruck, though it's unclear how many’ll roll out. Elon Musk said the futuristic truck would become profitable by 2025. - [Swab]( 23andMe is investigating its second leak this month, after 4M users’ data was reportedly published on a hacking forum. The hacker said they had genetic data on Musk and Mark Zuckerberg. - [BillieAI-lish]( YouTube is building an AI tool that would let users create songs using famous artists’ voices, if licensing deals are reached. Meta, Google, and Stability AI have released AI music tech this year. - [Slinging]( Sony dropped its most anticipated game of the year, “Marvel’s Spider-Man 2.” It’s hoping the latest installment in the Spidey franchise will help it sell 25M PlayStation 5s this year. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day During the pandemic, the average US family’s net worth grew 37% — the most on record [Read more]( Friday - Earnings expected from American Express Authors of this Snacks own shares of: Disney, Google, and Tesla Advertiser Disclosure: *Risks may include: greater risk of losing your home, loss of federal protections on your student loans, paying more interest over the life of the student loan, and greater difficulty qualifying for a cash-out refinance in the future. **Clients will receive a lender credit of $1,000 when they lock a loan on or after October 20th, 2023, utilizing the Snacks Newsletter application link. Offer cannot be retroactively applied to previously closed/locked loans. Offer does not apply to new loans submitted through non-retail loan originators, including brokers. Additional restrictions apply. Rocket Mortgage reserves the right to cancel/modify this offer/terms/conditions at any time. 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