Bloomberg Intelligence – BI Weekend: Netflix, Tesla, AT&T Earnings

Date: October 24, 2025
Hosts: Scarlet Fu and Paul Sweeney

Episode Overview

This episode dives into Q3 2025 earnings for major market movers, including Netflix, Tesla, AT&T, and more. Hosts Scarlet Fu and Paul Sweeney welcome Bloomberg Intelligence analysts to dissect financial results, identify trends, and provide insights on how business decisions and broader economic factors are impacting these companies across varied industries, including streaming, luxury goods, autos, telecoms, hospitality, and aerospace.

Key Segments & Insights

1. Netflix Q3 Earnings

Guest: Geetha Ranganathan (Bloomberg Intelligence, US Media)
Timestamps: [02:31] – [07:17]

• Tax Settlement and Operating Margins

  • Netflix’s results fell short of expectations, dropping shares to their lowest since April 2022.
  • A $619 million tax settlement with Brazilian authorities weighed on operating margins, but underlying fundamentals remain strong.
  • Quote:

    "Nobody saw this coming in terms of this transaction tax... But actually if you just strip out that Brazil tax impact, they would have had record operating margins." (Geetha Ranganathan, [02:51])

• Revenue and Content Pipeline

  • Despite an impressive content slate (biggest hits in Q3, more to come for Q4), financial results didn’t reflect this strength, causing investor nervousness.
  • Quote:

    "None of that was really reflected in the numbers and I think that's why you're seeing so much nervousness." (Geetha Ranganathan, [03:55])

• Potential M&A Activity

  • Netflix signaled openness to acquisitions, possibly studio assets from Warner Bros. Discovery (excluding cable networks).
  • Quote:

    "This is a once in a generational opportunity for anybody who wants to own this kind of a studio..." (Geetha Ranganathan, [04:31])

• AI & Content Costs

  • AI innovation could trim content costs by 5–10%, with Netflix leading in AI-driven efficiency.
  • Ongoing strong title pipeline (e.g., Paris, Bridgerton, Narnia movie in 2026) to drive engagement and pricing.
  • Quote:

    "We've run some numbers... it should help Netflix curb content cost by about 5 to 10%." (Geetha Ranganathan, [05:56])

2. Kering Sells Beauty Assets to L’Oréal

Guest: Andrea Felstead (Bloomberg Opinion)
Timestamps: [07:21] – [12:25]

• Strategic U-Turn

  • Kering sold its beauty division (incl. House of Creed) to L’Oréal for €4 billion in cash, reflecting a shift from former CEO’s asset-heavy growth to debt reduction and Gucci revitalization.
  • Quote:

    "What it really is, is effectively the sale of their beauty brands." (Andrea Felstead, [07:50])

• Gucci Revival Strategy

  • Gucci’s unique, flamboyant identity had faded, with recent efforts to return to roots via new creative leadership and bold marketing buzz.
  • Quote:

    "Gucci works best when it's very fashionable, when it's over the top." (Andrea Felstead, [09:48])

• Luxury Market Challenges

  • Chinese demand slump, higher US tariffs, and changing consumer behavior pressured aspirational buyers; Kering pivots to core brands.

3. Tesla Q3 Earnings

Guest: Steve Mann (Bloomberg Intelligence, Autos/Industrials)
Timestamps: [14:48] – [18:40]

• Earnings Misses Despite Record Sales

  • Missed expectations due to higher-than-expected depreciation, tariffs, and increased R&D spend—a sign of ambitious pivots to robo-taxi and robotics.
  • Quote:

    "Given the volume of production, you would think that the fixed cost absorption would be higher... but it didn't happen." (Steve Mann, [15:20])

• Musk’s $1 Trillion Pay Plea

  • Musk insisted on voting control to protect his vision and avoid past experiences (e.g., OpenAI).
  • Quote:

    "There needs to be enough voting control to give a strong influence, but not so much that I can't be fired if I go insane." (Elon Musk, as cited by Steve Mann, [15:55])

• Growth Drivers

  • Despite Musk’s focus on AI and robotaxis, Tesla’s immediate growth still hinges on car sales, with international market expansions (Japan, Korea, India) underway.
  • Quote:

    "He needs to continue to sell cars to actually generate the cash to support his endeavors." (Steve Mann, [17:57])

4. AT&T Q3 Earnings

Guest: John Butler (Bloomberg Intelligence, Telecom)
Timestamps: [18:44] – [23:38]

• Mixed Results from Promotions

  • Aggressive promotions led to higher subscriber growth but hurt per-user revenue; AT&T is now the smallest of the “big three” U.S. wireless carriers.
  • Quote:

    "Subscriber growth... was higher than expected... in a highly promotional environment." (John Butler, [19:16])

• Broadband Focus Over Wireless

  • Pivoting toward broadband, especially fiber, which John Butler called "the single best way to deliver Internet," as cable competitors lose share.
  • Quote:

    "For AT&T and their dedication to fiber, I think they're extremely well positioned to not only hold their own, but grow from here." (John Butler, [22:15])

• Industry Competition

  • New wired and wireless entrants (including Starlink) keep the market dynamic and challenging but create opportunities for well-positioned companies.

5. Mattel Q3 Earnings

Guest: Lindsey Dutch (Bloomberg Intelligence, Consumer Hardlines)
Timestamps: [23:41] – [27:17]

• Sales & Profit Headwinds

  • Retailers delayed toy orders amid tariff uncertainties and cautious holiday inventory planning, leading to a Q3 miss.
  • Quote:

    "Those orders were delayed further than... everyone expected. And they're taking smaller quantities than usual." (Lindsey Dutch, [24:01])

• Managing Tariff Pressures

  • Mattel absorbed most of the added costs through internal cuts, strategic sourcing, and selective price increases.

• Trend: Rise of the “Kidult” Market

  • Growing segment of adult toy collectors drives industry growth; Mattel responds with higher-priced collectibles and licensed collaborations.
  • Quote:

    "A big trend... is really the kidult trend which is adults 18 plus playing with more toys... the industry was up 6% in the first half." (Lindsey Dutch, [25:55])

• Outlook

  • No standout “must-have” holiday toy this season; a notable 2026 collab: Mattel & Netflix’s K-Pop Demon Hunters.

6. Hilton Worldwide Q3 Earnings

Guest: Jodi Lurie (Bloomberg Intelligence, Credit)
Timestamps: [30:20] – [35:14]

• Optimistic Guidance, Sobering Questions

  • Beat estimates and raised full-year outlook, but optimism is largely cost-driven rather than revenue-per-room growth.
  • Quote:

    "They're a little bit too optimistic it seems in general." (Jodi Lurie, [30:39])

• US vs. International Performance

  • Weaker domestic leisure and group travel, but Asia, Middle East, and Africa performing well.
  • Premium/luxury brands faring better than economy.

• Capacity Growth & Strategy

  • Expanding with a new lifestyle brand aimed at younger guests and adapting to changing lodging trends (e.g., Airbnb alternatives).
  • Concern over sustained shareholder returns vs. future uncertainty.

7. Aerospace: GE Aerospace and RTX

Guest: George Ferguson (Bloomberg Intelligence, Aerospace/Defense/Airlines)
Timestamps: [35:17] – [41:37]

• GE Aerospace: Still the Crown Jewel

  • Record-setting margins and supply chain improvements. Heavy demand for aircraft maintenance has been lucrative, but margin plateau likely as new deliveries ramp up.
  • Quote:

    "They're kind of in this sweet spot where... they're doing a lot of spare parts deliveries and that's really juicing profitability." (George Ferguson, [37:03])

• RTX (formerly Raytheon): Diverse Portfolio on the Rise

  • Strong performance across commercial, parts (Collins), and defense (Raytheon missiles/radars) – backlog building, especially in defense due to global demand.
  • Quote:

    "All of those businesses in that portfolio are really clicking right now... a lot of demand from customers around the world for missiles and for air defense." (George Ferguson, [38:09])

Notable Quotes & Moments

• Netflix on tax hit:
  "Nobody saw this coming in terms of this transaction tax." (Geetha Ranganathan, [02:51])

• Tesla’s Musk on control vs. accountability:
  "There needs to be enough voting control to give a strong influence, but not so much that I can't be fired if I go insane." (Elon Musk via Steve Mann, [15:55])

• AT&T’s fiber bet:
  "Fiber is the single best way to deliver Internet, period, full stop." (John Butler, [20:51])

• Mattel on the “Kidult” trend:
  "The industry was up...high single digits in the third quarter and that's really being driven by this trend." (Lindsey Dutch, [25:55])

• Hilton’s cautious optimism:
  "It's a little bit of a head scratcher I guess. A lot of it's coming from the cost component of it." (Jodi Lurie, [30:39])

Timestamps for Key Segments

| Segment | Timestamps | |------------------------------- |--------------| | Netflix | 02:31–07:17 | | Kering / L’Oréal | 07:21–12:25 | | Tesla | 14:48–18:40 | | AT&T | 18:44–23:38 | | Mattel | 23:41–27:17 | | Hilton Worldwide | 30:20–35:14 | | GE Aerospace / RTX | 35:17–41:37 |

Overall Tone and Takeaways

The tone is analytical, data-driven, and conversational, with humor and candor woven in, especially from guests. The episode frames a landscape of cautious optimism for some sectors (e.g., hospitality, aerospace), highlights competitive and technological shifts (streaming, telecom), and reveals how global uncertainty (tariffs, consumer habits, cost pressures) is shaping corporate performance and strategy.

This summary encapsulates all major content and insights from the episode, providing a comprehensive guide for listeners and non-listeners alike.