Brew Markets — October 22, 2025

Episode: Netflix Falls on Earnings & Ozempic’s Non-Profit Drama

Host: Ann Berry
Notable Guest: Karen Kimbrough (LinkedIn Chief Economist)
Theme: Dissecting the day’s big market headlines—Netflix’s underwhelming earnings, boardroom shake-up at Ozempic-maker Novo Nordisk, retail signals from Mattel, Hilton’s global travel take, and labor market insights.

1. Episode Overview

Ann Berry leads a data-driven, engaging walkthrough of the day’s most influential stock stories. Today’s focus: Netflix’s earnings miss, Novo Nordisk’s dramatic board overhaul, Mattel’s holiday sales warning signal, Hilton’s profit lift on global travel, and labor market takeaways with a special interview from LinkedIn’s chief economist.

2. Key Discussion Points & Insights

Novo Nordisk: Non-Profit Owner Drives Boardroom Drama

[00:31–03:18]

• Dramatic board shake-up: Seven of twelve board members ousted by the Novo Nordisk Foundation (owns 28% of shares but controls 75% of voting power).
• Foundation’s motivation: Frustration with slow board response to competition and market headwinds; Foundation wants faster, more decisive action to protect share value (supports funding their charitable initiatives).
• Recent company moves:
  • Loss of over 50% in stock value in past year
  • Launching an oral Wegovy
  • Cutting 9,000 jobs
  • Billions spent on acquisitions post-CEO change
• Ann Berry’s insight:
  • “This is the kind of dramatic change we associate with activist hedge funds shaking things up, not a non-profit foundation.” (02:30)
  • “It really is self-interest that motivates these kinds of things … a dramatic but rare lesson in how an active board member, whatever their background, can and should, challenge public companies to make tough moves when times get tough.” (02:47)

Netflix: Earnings Miss and New Revenue Experiments

[03:39–08:14]

• Financials:
  • Revenue up 17% to $11.5B (below forecast)
  • Net income up nearly 8% to $2.5B (below forecast)
  • First miss after six quarters of beating expectations (tax bill in Brazil cited)
• CFO Spencer Newman on earnings call:
  • “No other tax looks or behaves like this in any other major country in which we operate. And secondly, absent this expense, we would have exceeded our Q3.25 operating income and … margin forecast. And we don't expect this matter to have a material impact on our results going forward.” (04:22)
• Market reaction:
  • Shares down 10% intraday, still up 25% YTD (08:23)
• Advertising and diversification:
  • Best ever quarter for ad sales; ad revenue on track to double
  • Streaming live events (NFL, SAG Awards, WWE, World Baseball Classic) to boost ad streams—even for ad-free subscribers in some cases
  • Notable quote: “Even in live shows are going to be commercials, even if you've got an ad free subscription. So a different form of ad revenue coming in.” (05:44)
• Games and content:
  • Launching new party games playable via TV and smartphone
  • Movie “K Pop Demon Hunters: Sing-along” set for AMC theater screening—a warming relationship between Netflix and theater chains
  • Partnership with Spotify to air video podcasts on Netflix next year
• M&A speculation:
  • Rumors about buying Warner Bros. Discovery—shut down by co-CEO Ted Sarandos:
    • “We've been very clear in the past that we have no interest in owning legacy media networks. … We're predominantly focused on growing organically.” (07:52)
    • Ann’s response: “This was pretty definitive.”

Mattel: Weak Q3 as Holiday Season Outlook Dims

[08:14–10:56]

• Mattel’s Q3 earnings:
  • Missed Wall Street expectations, shares down nearly 3%
  • North America sales declined 12%; toddler/preschool category weak; international up slightly
• Market implications:
  • Weak orders from retailers (Walmart, Target, Amazon) suggests cautious outlook for holiday season
  • Ann Berry: “The fact that sales were weak at Mattel is something the market is looking at and saying, oh no … Walmart and Target … are expecting holiday sales to not be as strong as we all would have hoped for.” (09:34)
• Patterns from past:
  • Delayed orders during prior trade wars were a harbinger of macro stress; this year’s pattern echoes that

Hilton: International Growth Offsets US Weakness

[10:56–12:55]

• Hilton’s Q3 results:
  • Record profit and revenue ($3B+) despite a minor dip in occupancy and average daily rate
  • Stock up 5% on the day
• US vs International business:
  • US revenue per room down 2.3%, global down 1.1%
  • Growth in Middle East and Africa stands out; new pipeline includes 3,650 new hotels in 26 new territories
• Operating model insight:
  • Heavy reliance on franchise/licensing fees boosts cash generation
  • Ann: “Their business model is very special because they have a lot of franchise and licensing fees. Those were actually up year over year.”

Labor Market Deep Dive — Interview with Karen Kimbrough, LinkedIn Chief Economist

[14:58–26:31]

Government Shutdown and Alternative Labor Data

• Government data blackout (no BLS jobs data); private firms, including LinkedIn, step in
• Karen: “We're not only publishing the data, we're offering to share it with government officials, with central bankers, … to let them … understand what we're seeing.” (15:53)
• Real-time data on hiring, job openings, quits, and role growth

Current Labor Market Trends

• Slowing, not collapsing:
  • Job growth now much slower; jobs created over the last five months equals single month (April) gains from earlier in year
  • “The labor market is holding up, but it is a lot more fragile … than it was … six or eight months ago.” (17:37)
• Entry-level woes:
  • Hiring for all groups down about 20% vs. 2019; entry-level down 24%, and entry-level with a college degree nearly 40% down vs. pre-pandemic levels
  • Not AI’s “fault”, says Karen—macro/cyclical factors are driving, not automation
  • “I don't believe AI is fully to blame … most of the explanation for the entry level slowdown is macro.” (19:02)

Demand for AI and Human Skills

• AI literacy fastest-growing requirement:
  • 70% YoY increase in job posts requiring AI literacy, seen across many fields, not just tech
  • “This is marketing specialists, project managers, architects, you name it … They want AI literacy as table stakes.” (20:55)
• But soft skills are rising too:
  • “Employers also want someone who's got reading comprehension, listening comprehension, great EQ, just warm human engagement.” (22:11)
  • Anne and Karen agree: Success will belong to those who blend critical thinking and people skills with the new digital demands

“Ghost Jobs” and The Application Slog

• Some companies post jobs they have no intent to fill, to signal “growth” to employees
• LinkedIn adds features to verify which roles are actively being filled/interviewed
• More competitive environment: “There are twice as many applicants per open role as there were two or three years ago.” (24:08)
• Advice: Apply for roles you’re a true fit for, not scattershot; LinkedIn’s fit-matching tools can help

3. Notable Quotes & Memorable Moments

• On Novo Nordisk’s shakeup:

  • “It really is self-interest that motivates these kinds of things … a dramatic but rare lesson in how an active board member, whatever their background, can and should, challenge public companies to make tough moves when times get tough.” (02:47)

• On Netflix’s tax hit:

  • Spencer Newman: “No other tax looks or behaves like this in any other major country in which we operate. … We don't expect this matter to have a material impact on our results going forward.” (04:22)

• On Netflix M&A rumors:

  • Ted Sarandos: “We've been very clear in the past that we have no interest in owning legacy media networks. … We're predominantly focused on growing organically.” (07:52)

• On labor market health:

  • Karen Kimbrough: “The labor market is holding up, but it is a lot more fragile … than it was … six or eight months ago.” (17:37)
  • “AI literacy is the number one fastest growing skill on our platform.” (20:55)
  • “There are twice as many applicants per open role as there were two or three years ago.” (24:08)

4. Timestamps for Key Segments

• Novo Nordisk's Boardroom Drama: 00:31–03:18
• Netflix Earnings and Ad Revenue: 03:39–08:14
• Mattel’s Holiday Warning: 08:14–10:56
• Hilton’s Global Growth: 10:56–12:55
• Labor Market Interview (Karen Kimbrough): 14:58–26:31

5. Tone and Style

Ann Berry’s explanations are clear and direct, mixing expert commentary with relatable metaphors (“drinking from the fire hose”). The show highlights actionable investment insights and wider macroeconomics, with guest Karen Kimbrough providing nuanced, data-rich commentary. The language is accessible, but never dumbed down—business insiders and curious laypeople alike will find depth and context.

Summary prepared for listeners who want the headlines, context, and expert perspective—no promo, no filler.