Melissa Lee (0:00)

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And how does the company keep growing? We are dialed into the call to bring in some answers. Plus rotten Apple shares of the iPhone maker touching levels not seen since last September. The stock down nearly 15% from its Christmas highs. Is there still reason to buy the stock? We'll get some answers from one big bull and later Williams Sonoma hits all time highs. Will names like Home Depot and Lowe's get a boost? What is driving this housing trade and will it stay on a solid foundation? We'll debate that. We're also awaiting President Trump expected to speak after meeting Oracle Executive chair Larry Ellison, SoftBank's Masayoshi Short son and OpenAI. Sam Altman will bring you his comments as soon as they begin. I'm Melissa Lee, come to you live from Studio B at the nasdaq. On the desk tonight, Tim Seymour, Karen Feineman, Dan Nathan and Guy Adami. And we start off with Netflix's monstrous Q4, the streaming giant shares surging after revenue jumped to over $10 billion. The company also adding a record 19 million subscribers. 10 million more than expected expected, bringing its total to over 300 million. The call kicking off about 15 minutes ago. CNBC's Julia Boorstin has been listening in. It's got the very latest. Hey Julia. Yeah, Melissa. Some questions about that huge beat in subscribers and what was behind it. It was driven in part by Netflix's lower priced ad supported plans. Co CEOs Ted Sarandos and Greg Peters saying that the subscriber boost was not solely because of a huge influx of new subscribers that came for the Jake Paul Mike Tyson fight or the NFL Christmas Day games, but rather based on the success of a broad array of Netflix content around the world. And they're making that content more accessible, saying that the ad supported plan accounted for over 55% of signups in the fourth quarter in countries where it's available. And that membership on its ads plan grew nearly 30% quarter over quarter. Now, with this demand that Netflix saw in the quarter, it feels comfortable raising prices. Price hikes announced for the U.S. canada, Portugal and Argentina. Netflix is raising prices on the ad plan from seven to $8, the Standard plan by two and a half dollars to $18 and the Premium plan by $2 to $25. Now, adding an extra member, increasing just by a dollar. Now, the lowest price option remains adding an extra member to the ads plan that costs $7. And that is a new option. So that's notable because the company said that a top priority for 2025 is to improve its offering for advertisers so they can substantially grow ad revenue. And Melissa, that's all about getting more ey inventory for advertisers. Melissa? Julia, I mean, I think that the skepticism will be surrounding that big beat on the subscriber number. And you mentioned they were, they were ready to say that it's not because of the fight at the end of December. Do you think they'll give us any sort of ideas to keep the cadence of the subscriber ads throughout the quarter? Because if it was because of a broad array of content, then it should be sort of even. Well, what they said is there were subscriber editions throughout the quarter and around the world. And they also said that yes, they saw some people sign up for the fight, but they didn't cancel right away. The fight was in November. They stuck around to watch the premiere of Squid games in December. And what they say they're seeing here is this really broad array of content that's very popular all around the world. They have this plethora of options of local language content that really is paying off. And it's just fascinating to see the addition of 10 million more subscribers than expected. And Melissa, this is the last quarter that Netflix is going to be reporting subscribers going forward. They want to shift focus away from the sub number towards profitability because if you have dual revenue streams, it's not about just how many people are paying the monthly fee. It's how much people are engaging every day and watching ads, because that's going to be the driver of that key second revenue stream. Now, in the past, they Said that advertising was not going to be a key revenue stream for 2025, pointing to 2026 when there will be an inflection there. But with these numbers you've got to wonder if we're going to see ads really kick in as a profitability driver sooner. All right, Julia, thank you. Julia Boorstin. Nice to go out on a high note on a metric you're no longer going to report Guy. Hard not to like the quarter. I mean, okay, say that you're right. Maybe it was a one off in terms of. But it's a record number of subscribers for a quarter. Even if you want to back out the fight and say maybe that was sort of inflated, it's still extraordinary margins a lot better than 22%. Their ad tier now goes to 799. From 699 they're going to jack up prices. Remember is about seven or eight years ago they did that, the stock market didn't like it but now they're in a much different place. So I don't think you chase it here. I think we were pretty consistent the last couple of weeks, the sell off into earnings. I thought the setup was good, but here's levels where you should be, I think reaping some harvest and looking for a better entry point. And that's not an indictment of the quarter since the way the stock is not at all. That was your call guy into the print. I just think of this as like the opposite of what happened in 2022. Remember when they were losing subscribers faster, expected, they did not have the ability to kind of raise prices and the stock kept on gapping lower at like 75% of its value. Now if you look at a quarter like this and you say to yourself, okay, they just guided up revenue maybe like 4 and a half, 5% or so. You see yourself, okay, like, like the price increases. It's just margin. It's great. The advertising business doubling year over year. It's great. It's just margin. You know the fact of the matter is though, when you have this ad supported tier on the low end, you have to ask yourself how much can this kind of continue? At some point they have 300 million global subscribers. 30% of those are here in the US at some point if inflation becomes an issue again, I think it's probably going to be hard to continue to raise prices at this level. But you know, again there's nothing not to like. I just don't know how you chase it here. I actually think if inflation becomes an issue, they can raise prices more easily. But I think there's so many things that to like here. I mean, you talk about a lot of them. You know, obviously subscriber growth is great, but there's just so many levers between ad supported, between. You just talked about the margin. When you have a price increase, that's nearly entirely margin. I mean, they just so won the streaming wars. And one of the things that I thought was interesting in the letter, we believe we count for less than 10% of TV viewing in every country we operate. So they just view that as 90% that they don't yet have. Right? That they don't yet have. And at one point that would have seemed ridiculous that they would think not anymore. So when you talked about that terrible, terrible quarter and they lost subscribers, they had just terrible content misses after miss. But now if such broad content and live sports, I mean, there's so much to like here. And yes, it's expensive, but I think it's worth it. I think this quarter was something that the market was pricing in before the quarter. But at the same time, I think this quarter was so extraordinary that I think you're going to see the street continue to upgrade. In other words, I think no one's surprised by the operational leverage in their business and that this is a company that, as Dan said, is dropping everything to the bottom line at this point. And that's what's really exciting about it. So I actually think that although it's been an incredible run for Netflix and Dan referenced that, that low point back In May of 22, the stock's up almost 500% from May of 22. And there's a lot of different reasons for it. But you know, it's also about what they're also saying in the after hours, their ad revenue is going to double again next year. So we started at about 40 million. This number tells you about 80 million. And now we're seeing that that number is going to double again. But also talking about how they're not chasing big sports big I feel they're calling big team sports or big boy sports guy. What I'm not familiar with big boy sports, but that they are chasing one off and they are chasing live events. So it's going to come back to what's the multiple you're paying for this company? And if, and if, if the consensus on the street was somewhere around 14 billion for 25 EBITDA, it's probably going to 15 or 16 EBITDA, which means this stock's trading at about 26, 27 times. No more dollar with price hikes still on the way, more dominance in terms of a global market. Like the worst thing we're going to hear probably is about dynamics, you know, and who cares? They actually talked about the dollar, I think in terms of the strength of the dollar. But you know, everything everybody said is spot on. The question is, I think at 509, do you chase it here? The prior all time high, that was 942. So, you know, I think good practice suggests we'll visit that at some point. So if you've missed the run, I think that's your entry point. But it's a remarkable quota on just about every metric. Does Netflix though deserve to be rerated at this point? I mean, to your point about inflation, haven't we proven that Netflix story is sort of Teflon in the face of inflation? Yeah, it's a low reflection. I mean, listen, I go back to. It's funny that they're not chasing the big sports. If you look at what they did in the NFL, I think they had 25 million viewers of each of those two games. They have 90 million subscribers here. It's pretty astounding. Like you can go after that Tyson fight we all watched. It was brutal. It was a long four hours. You know what I mean? Get getting to that fight and it was not a good fight. But what did they have like 60 million people? You know, like 20 some percent. I mean, it's, listen, it's amazing. I think if they get in a battle for sports rights, that's a battle that they're probably going to have a hard time keeping some longevity to because look at some of the deals that folks are doing for NBA rights was an $80 billion deal. I mean, I don't think they want any part of that. Yeah, and that's, that's even better for the Netflix story. Right? It's like you, you all out there, you go fight over it, spend a lot of money. We're going to stick right here and we're going to create our own events. Well, and who knows better than Netf, because again, this at one point was a company that was paying to have reruns of, you know, might have been the Brady Bunch. Although I would have. Yeah, but, but the point is they were paying so much for content. All we do is talk about their content slate, how much it was going to cost. If anyone has an ability to discern where we want to spend on content and where we can actually make it by ourselves, really cheap I think this is, this is the company you want to listen to if they're not chasing big sports. I think, boy, I'd be a little worried if I was NBC or even CBS or abc, all these people that are chasing big sports. All right, meantime, we are awaiting President Trump set to announce an artificial intelligence infrastructure deal with some major tech players. CNBC's Eamon Javers has more on what we can expect. EAMONN well, Melissa, we can expect this event to start at any moment. Now, we're ten minutes into the two minute warning, so your guess is as good as mine as you look at those live pictures of the Roosevelt Room. We do expect an announcement here of a massive multibillion dollar joint venture in terms of AI infrastructure between some of the biggest players in the AI and technology industries. So Oracle will be in the room. OpenAI will be in the room. SoftBank will be in the room. And the question is exactly how big is the, is the total dollar amount that we're talking about here in terms of this investment? Where will this money all go? And then one sort of political question is Masayoshi san was with Donald Trump down in Mar A Lago a month ago, promised $100 billion in investment in the United States. Does this count toward that or is this a separate bucket of investment money? In any case, the Trump administration sees this as a big win and a way to start off the administration by showing the American voters that Trump can deliver on what he said he was going to do, which is create jobs, juice the economy and get things going, particularly on AI, which is one of the hottest and most important industries for the future. MELISSA Eamon I think it's interesting though that, you know, the backdrop of this is that a U.S. steel Nippon Steel deal had been blocked because national security concerns, and yet he is opening the gates to foreign investment in another area that can be argued is much more of concern when it comes to national security. AI and data centers. And it's not just Masayoshi San from SoftBank. It's also, you know, the Middle east money that we're getting for data centers. $20 billion, I think it was. Yeah, that's exactly right. And so one of the questions here is what is the Trump administration's red line in terms of foreign direct investment in the United States? Is it just that the US Steel deal involved an iconic American name and is it just, you know, hands off the big iconic American names or is there some other nuance to this policy that hasn't been articulated yet? And we'll wait to see what the White House says about that. But clearly Trump standing is going to be standing here welcoming this direct investment with open arms. You know, it's Japan in both cases, Melissa, you talk about Softbank or Nippon Steel. You know, it's a major US Ally, major part of sort of the Western world. Does that represent a national security threat? You know, clearly Trump will say no in this case. But you're right. Where do you draw the line? Who do you include sort of in the tent and who's out of the tent? All of that still. Tbd. Yep. Eamon, thank you. You bet. Eamonn Javers in a very cold Washington, D.C. we should note. But I mean, that's an interesting thing. Will be well, what is the ownership structure of all of these investments as US have ultimate control over everything that is built, do we actually own it? Because one would argue that these are investors and they are shareholders in whatever project this becomes, whether it's, it's right now, it's being, it's reported that it's going to be called Stargate. We saw a lot of these stocks rise, you know, towards the end of the session on the back of the anticipation of this announcement. A joint venture where the US has interest money, flows into the Treasury. You heard that yesterday. Your question. Amen. Was spot on. And his response, I think was exactly right. I think if US Steel was called Lehigh Valley Steel, we wouldn't be and I'm not even kidding around, I think there was a name that really caused some consternation not only for the Trump administration, but for the Biden administration too. I think a name, any other name, this probably goes through, but you're spot on. Where do you draw the line? And clearly there is a line. I just don't know what it is. But it's great for the AI trade. I mean, think all this money needing to be deployed on chips and servers should be. My deal. Should be a beneficiary in video. Should be a beneficiary. Yes. Yeah, I mean, I think that's great. I don't know what has to happen for it for this to happen. I don't know. We shall see. But I'm so stuck on that first point that you raised about how is it that, that that U.S. deal is and this is my first reaction, is that deal is going to go through. I mean, I mean, at some point you're going to work through the politics of what was political season. I mean, the height of it, when we decided to shoot this thing down for no Reason. And yet again, great point, Melissa. I, I think also this is, if you're chasing or if you're investing behind these kinds of themes, it's going to be a different theme in 25 than it was in 24. It's not necessarily going to be about some of the chip names. Although if you think about underperforming chip names, I, you know, I would. But if you're thinking about even the Constellation Energies or the, the Arista Networks or these types of move, this, this is the stuff that moved today. And in fact, if you looked at markets, day was a bit of a barbell, right? You had really high end, high, ultra high growth stuff rallying. Then you had small caps and some of the, you know, some of the equal weighted stuff rallying. But it was clearly about today. All right, call me skeptical. I mean, I think this is going to be, there's no there there. I think all three of these companies, they're going to announce something. And all three of these companies were already committed to spending tens of billions, if not hundreds of billions of dollars over the next few years. And I think we're probably going to see that this is over the life of the term of Donald J. Trump. Right. And so you think about OpenAI being at the table, okay, that's really smart for Sam Altman because everyone kind of hates them other than Microsoft. Oracle would love to get more market share as it relates to, you know, the public cloud. Right. Who's the other one that they. Oh, Masterson. I mean, he's so far up Trump's, you know what I mean? Like, give it, give me a break. He's committed $100 billion how many times? Because Trump said, how about 200 billion, right. In the same exact 50 to 100. And then Trump's like, I'll take 200. I guess my point is, is like we could walk away. It's got a nice name, it feels like infrastructure every week for four years, that sort of thing. And so why did Nvidia not rally 10% today? Why did Dell not rally? You know what I mean? Like, I just don't think investors who are paying attention to this trade think this is a particularly. Oracle did rally 10%. Yeah, because you know what, look at how Oracle traded last two months or so. I mean, they started missing on their growth targets for their cloud infrastructure. And so what does that tell you about the folks that are at the table right, right now? All right, again, we are waiting President Trump to speak as soon as that begins. So we'll bring that to you live. Meantime, coming up, earnings season officially in full force. Shares of United Airlines on the move after its results. The details and numbers out of the quarter next. Plus gapping higher. Shares of the retailer jumping as a CEO weighs in on strategy and growth. The turnaround plan he laid out that had investors giving the stock a try on don't go anywhere fast when he's back into the trial. This is FAST MONEY with Melissa Lee right here on cnbc. Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals like business management, strategic planning and effective communication. And you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at capella. Edu. Weekdays at 5am Be first on world markets, first to the global business conversation. Get a jump on the investing day every day with Frank Holland. Success starts early. Worldwide exchange, 5am Eastern. CNBC. Welcome back to Fast Money. We've got an earnings alert on United Airlines. The stock taking off after the company beat top and bottom line estimates. That conference call will come tomorrow morning. Let's get to our Filibo right now with the very latest. Actually, you know what, President Trump has begun speaking from the White House. Let's go to him live. It's an honor to be here today. We have first full day as president. We're back and we had a great first term, but we're going to have an even better second term. And I think we're going to do things that people would be shocked at. We're starting off with tremendous investment coming into our country at levels that nobody's really ever seen before. And they're very happy with the fact that, that I won the race and that they feel confident in their investments. And it's big money and high quality people. So my first day back from having a nice life. It's my Honor to welcome three of the world's leading technology CEOs. And in the case of Larry, Larry Ellison, it's well beyond technology, sort of CEO of everything. He's an amazing man and an amazing business person. But to announce the largest AI infrastructure project by far in history, and it's all taking place right here in America. As you know, there's great competition for AI and other things and they're coming in at the highest level. We're Joined by Oracle Executive Chairman Larry Ellison, SoftBank CEO. My friend Mahsa Mahsa Yoshi, son and CEO of OpenAI and I would say the by far the leading expert based on everything I read, Sam Altman. So that's great that you're coming in together. That's a massive group of talent and money together. These world leading technology giants are announcing the formation of Stargate. So put that name down in your books because I think you're going to hear a lot about it in the future. A new American company that will invest $500 billion at least in AI infrastructure in the United States and very, very quickly, moving very rapidly, creating over 100,000American jobs almost immediately. This monumental undertaking is a resounding declaration of confidence in America's potential under a new president. Let me be a new president. I didn't say it, they did. So I appreciate that fellas, but it'll ensure the future of technology. What we want to do is we want to keep it in this country. China is a competitor and others are competitors. We want, we want it to be in this country and we're making it available. I'm going to help a lot through emergency declarations because we have an emergency. We have to get this stuff built so they have to produce a lot of electricity and we'll make it possible for them to get that production done very easily at their own plants if they want. Where they'll build at the plant, the AI plant, they'll build energy generation and that will be incredible. But it's technology and artificial intelligence all made in the usa. Beginning immediately, Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI. And this will include the construction of colossal data centers. Very, very massive structures. I was in the real estate business. These buildings, these are big, beautiful buildings. They're going to employ a lot of people and physical campuses and locations currently being scouted nationwide. They're making their choices of locations. I think they have their choice. I'd like to ask Larry, Sam and Mahsa to say a few words and just talk about a little bit about what they're doing and if you have any questions and then we'll go into a couple of other subjects also. But this is to me a very big thing. $500 billion Stargate project. I think it's going to be something that's very special. It'll lead to something that could be the biggest of all. So Larry, maybe we'll start with you and we'll go down the line. Thank you, Mr. President. Thank you, Mr. President. We certainly couldn't do this without you. It would simply be impossible. AI holds incredible promise for all of us, for every American. We've actually been working with OpenAI for a while and with MASA for a while. The data centers are actually under construction. The first of them are under construction in Texas. Each building is a half a million square feet. There are 10 buildings currently being built, but that will expand to 20 and other locations beyond the Abilene location, which is our first location. The kind of applications that we're building, to give you an idea, maybe the most charismatic and the one that I think touches us all is electronic health records. Not just maintaining electronic health records, but by looking at electronic health records, understanding the condition of doctors better, understanding the condition of their patients, and being able to provide healthcare plans that are much better than they otherwise would be. A doctor in Indian River Reservation would be able to see how a doctor at Memorial Sloan Kettering would treat the patient or a doctor at Stanford would treat the patient. We actually provide all of that information, all of that guidance to the doctors who are treating cancer patients or patients with any other kind of disease made possible by AI. I'm not going to take a lot of time. I'm going to. I'm going to pass it to mahsa. But this is a very exciting program for Oracle to be a part of. Thank you. Thank you, sir. Oh, thank you. That helpful. That's good. That's great. I feel tall now. Thank you. Well, well, Mr. President, last month I came to celebrate your winning and promised that we would invest $100 billion. And you told me, oh, Masa, go for 200 now. I came back with 500 because this is the, as you said yesterday, this is the beginning of golden age of America. This is one great example, I think, right. We wouldn't have decided to do this. This is the beginning of golden age. We wouldn't have decided unless you won. And yesterday we agreed, we signed to make this happen because of this thing. So we would make this happen. We would immediately start deploying $100 billion with a goal of making $500 billion within next four years, within your time. Right. Because of your success. So we are very, very excited to do this. And our partner is of course, SoftBank, OpenAI, Oracle, and additionally investing partner with MGX. On top of that, we have the technology partner Nvidia. And of course, Microsoft has been very, very supportive to Sam and continue to support all our success. This is not just for business as Raleigh said, this will help people's life. This will help solving many, many issues, difficult things that otherwise we could not have solved with the power of AI. I think AGI is coming very, very soon. And after that, that's not the goal. After that, artificial super intelligence will come to solve the issues that mankind would never, ever have thought that we could solve. Well, this is the beginning of our golden age. Thank you very much. Thank you very much. Fantastic. I don't have too much to add, but I did want to say I'm thrilled we get to do this in the United States of America. I think this will be the most important project of this era. And as Mahsa said, for AGI to get built here, to create hundreds of thousands of jobs, to create a new industry centered here, we wouldn't be able to do this without you, Mr. President. And I'm thrilled that we get to. I think it'll be an exciting project. I think we'll be able to do all of the wonderful things that these guys talked about. But the fact that we get to do this in the United States is, I think, wonderful. So thank you very much. Could you just say one word? I hear so many positive things about what it's going to do for medical research and. And for solving things. Cancer and all the different problems. How will AI help us with the fight against the various problems, diseases, et cetera? These guys can maybe share more about some of the work they're doing there. I think they'll jointly be some of the leaders about driving progress here. But I believe that as this technology progresses, we will see diseases get cured at an unprecedented rate. We will be amazed at how quickly we're curing this cancer and that one and heart disease and what this will do for the ability to deliver very high quality healthcare, the costs, but really to cure the diseases at a rapid, rapid rate, I think will be among the most important things this technology does. So we're currently working on. Should I step on this? Okay. All right. No, no, no. I'm not that tall. I'm not that tall. I'm not that tall. I'm. Thank you, Mr. President. One of the most exciting things we're working on, again, using the tools that Sam and Mahsa are providing, is a cancer vaccine. It's very interesting. Early diagnosis, it turns out. I'll be quick. All of our cancers, cancer tumors, little fragments of those tumors float around in your blood. You can do early cancer detection. You can do early cancer detection with a blood test and using AI to look at the blood test, you can find the cancers that are actually seriously threatening the person. Again, cancer diagnosis using AI has the promise of just being a simple blood test. Then beyond that, once we gene sequence, once we gene sequence that cancer tumor, you can then vaccinate the person, design a vaccine for every individual person to vaccinate them against that cancer. And you can make that vaccine, that MRNA vaccine, you can make that robotically again using AI in about 48 hours. So imagine early cancer detection, the development of a cancer vaccine for your particular cancer aimed at you, and have that vaccine available in 48 hours. This is the promise of AI and the promise of the future. Thanks. Yeah, just one second, we'll finish up. But these are highly respected guys. I was shocked with Larry because I don't even think Larry does this stuff. You did a very good job for a guy that doesn't do it much, right? But he's so respected and the group, and it's, it's really an honor. But for Larry to be here and do this is very unusual because he doesn't do this stuff. He doesn't need it. He does. And you don't need it, do you? Huh? You don't need it. But I just, I think it's an honor to the, to the country. It's a great honor that this group, these are the top people that they. They're going to do it and they're going to do it here, and we're going to make it as easy as it can be. A $500 million Stargate project comes in addition to a separate pledge between 100 and $200 billion from, as we know, from Masa that we talked about before. Also 20 billion from DAMAC, which was great. And we have many others that are coming. Some, I just say, just announced it, it's easier. But with some, I know them, and they're so highly respected. I'd rather do it this way. Many would like to do it this way, but we're letting the world know what's happening. This is money that normally would have gone to China or other countries, but in particular China. In total, before the end of my first full business day in Washington in the White House, we've already secured nearly $3 trillion of new investments in the United States. And probably that's going to be six or seven by the end of the week. Tremendous amounts of money are coming in for many things other than even AI. AI seems to be very hot. It seems to be the thing that a lot of smart people are looking at very strongly Our country will be prospering like never before. I think that's true. And it's going to be the golden age of America. As I say yesterday we had the most ambition, ambitious, action oriented day of any administration in history. There's never been a first day like yesterday. As you know, I signed a sweeping slate of executive orders to stop the invasion of our borders. I launched a government wide effort to defeat inflation and bring down the cost of daily life and bring down the cost of energy. Magnificently bring it down. And when energy comes down, Larry, I'd say generally speaking, when energy comes down, everything else comes down. The prices of food and the prices of everything else come down. Energy is the big, that's the big baby. And we declared a national energy emergency to drill, baby drill, our term that we use. We're going to drill baby drill like never before. We ended destructive DEI mandates across the federal government and returned our country to a merit based system and a common sense system. As you know, the Supreme Court gave us a decision on merit where things in this country can be based on merit. Now, instead of a lot of different rules, regulations and things that really put our country at a big disadvantage, we permanently stopped government censorship and restored free speech. That was signed yesterday. We renamed the Gulf of Mexico the Gulf of America. Sounds so beautiful. The Gulf of America. And returned the name of a great president, William McKinley to Mount McKinley. They took off the name and he was actually a great president. He was a very, very successful businessman. He ran for governor of Ohio. He won and did a great job as governor. Ran for president and he won. He was assassinated it ultimately in the second term. Fortunately, that was President Trump speaking at the White House on an infrastructure investment alongside OpenAI CEO Sam Altman, Oracle executive chairman Larry Ellison and SoftBank CEO Masayoshi Son. The project could be up to $500 billion in investment. Amy Javors has got the headlines here. Eamon. Yeah, Melissa. The president not specifying exactly when we're going to see that $500 billion, but Masa San there of SoftBank saying he's going to spend it all in Donald Trump's second term here. Trump also saying that this project will create 100,000 jobs in America. And the CEO of OpenAI, Sam Altman, saying it's very important for him that this project is being built here in the United States. And obviously that is something that the Trump administration wants to emphasize with this announcement that this is a made in the USA AI event and especially with the importance of AI globally in terms of transforming the global economy. They want to be sure that all of the biggest technological investments are here, as you heard the president say, and not in China. Guys. All right. Amen. Thank you. Amen. Jabbers. Let's bring in Dan Ives, global head of technology research at Wedbush. Dan, you've been listening to the press, the President's press conference, and I'm wondering as an analyst who covers a lot of these names, at what point do you start actually modeling in? Do you wait until their contracts or do you acknowledge that there is some sort of expectation and therefore you get excited along alongside? You know, we saw the stock react in the late afternoon. Yeah, look, Moses, I think this is, it's something you're going to have to start to model in. I mean, not just for names like Oracle, but especially when it comes to any of these sort of data center innovation plays the palantirs Microsoft and others. And I think now it's a question of the multiplier effect and how quick this is going to happen. But we're seeing this off to a fast start and everything we're seeing the beltway, this is going to be just really, really positive for more of the data center players from Microsoft, for Amazon, for Google and of course for Oracle. Hey, Dan, it's Dan. You know, when you think about some of these numbers being thrown around, there's no specifics here. You know, Microsoft gave some Capex guidance, I want to say a few weeks ago. They kind of guided to maybe $80 billion in the next year or so, 40 of that was going to be overseas. Don't you get to a point where you can only build so much data center infrastructure here in the US Especially for these big multinationals who have to serve other places around the world. In the last part of this question is and what about power consumption? At some point there's only so much data centers you can build in the near term because you are power constrained. Yeah, I mean, you hit on a great point because the reality is we could talk about these CapEx numbers, but it's about you need the ultimate the grid, you need the energy. And we get about nuclear and other names. I go and you know, and others. But if you look on the data center side, I mean there's essentially going to be more data centers under construction than actual data centers. But now how quickly that gets built and especially when it will see it in earnings. But for Microsoft, for Amazon, for Google, the capex is there. But now it's about monetizing and how quick that's that's what the street's going to be focused on for the next 2, 3, 4 quarters. Dan, it's Tim. So let's do that then. So let's act like today didn't happen as you were looking at the universe of getting exposure, exposure to AI across you know, a number of different, let's call it just ancillary industries but, or straight out of Broadcom or straight at some part of the, the, the legacy players we know about. Where are you coming into today before this news Tim I think you're looking at not just Broadcom but what I believe is sort of the second third derivatives. I think this is bullish for software. I think when you look at names like salesforce.com of course names like Palantir and others because as the data centers get built it's getting where the pups going. Who, where are the use cases? That's really what the key is going to be over the call it next 2, 3, 4 quarters. I think it's really, this is bullish for software because data centers, they get built out. The use cases are going to be software driven but the use cases aren't clear right now. I mean are we going to be at a point where we have, have the data centers in place but the use cases? That part of the equation hasn't exactly caught up. Yeah, I think right now that's actually, it's starting to catch. I mean I think we saw with Benioff and Salesforce, we've seen it with ServiceNow, Palantir and now the use cases are really going to start to explode because these companies, when you buy all the capex, it's about the multiplier. For every dollar spent on an Nvidia chip, we, we there's an 8 to $10 multiplier across the rest of tech. That's bullish for all these data center players, bullish for software. And that's going to really be the focus going into earnings season in terms of playing out these sort of next derivatives of AI yet Dan I went sort of Jason, I looked at Dell and I'm like, you know what? On the margins it's got to be good for that stock, especially given the fact that it has sold off significantly since that huge move we saw. I think it was the fall of last year. Yeah, I think Dell has gone overly hit. I think when you think about ones that are going to play, of course it's Oracle. But names like Dell, you could argue names like Cisco and others are going to be beneficiaries here. Because what you're seeing over the last 24 hours from Trump, I mean it's a green light from an innovation perspective. And that's not just going to be some of the data center, it's all the US Tech players. Everyone's going to try to get in on this massive spending wave. This is just the beginning and I think Dow clearly will be a beneficiary of that there. Dan, it's Karen, thanks for being on. So for the software players, when do you see the sort of day of reckoning with companies running much more efficiently, not meeting, needing so many seeds, so subscription potentially being under threat? Yeah, look, I don't really see like we'll call cannibalization probably till the end of 25 and the 26. I think right now it's really, it's about all these use cases launching. That's why I think you start to see see a Palantir first service now and then of course, Salesforce. I think when you look at names like Adobe, you're going to look at names like Workday and others. I mean software is really going to be at the key theme when it comes to AI as they get launched. You will have whether it's a day of reckoning or some sort of cannibalization, but I don't think that happens in three or four quarters from everything we see in the field. Dan, great to speak with you. Thank you for your quick take. Thank you. Thank you. Dan Ives of Wedbush. Coming up, Netflix's call just wrapping up shares at after hours highs. We'll get all the details here with LightShed's rich greenfield right after this. Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University we offer a relevant education that's designed to focus on what you need to know know in the business world. We'll teach professional skills to help you pursue your goals like business management, strategic planning and effective communication. And you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at Capella. Edu weekdays at 5am Be first on world markets, first to the global business conversation. Get a jump on the investing day every day with Frank Holland. Success starts early. Worldwide exchange, 5:00am Eastern CNBC. Welcome back to Fast Money. Another check on Netflix. Shares are up 14% now in the after hours. A conference call just wrapping up. Lightshot Partners, Rich Greenfield was on the call, joins us now. Highlights here. Rich, stunning like Melissa, just stunning. Running away like you Know, like we talked about sort of escape velocity. Like they're leaving the rest of the industry in the dust. I mean, it's sort of hard to imagine. They just added 19 million subs. That's more than they added in the quarter after Covid hit in March of 2020. I mean, they've never added 19 million subscribers. And sure, they had the big Tyson Paul fight, they had the NFL on Christmas, but it wasn't like any one of those was the overwhelming driver of that many subs. I mean, I mean, they probably added 5 million subs in the U.S. i mean, or 4 to 5 million subs in the U. S. Like that's just a crazy number when you think about, I mean, they're up to 80 million U.S. subscribers, the cable TV universe is down sub 70. Netflix is at 80 and still growing in the U.S. that's sort of hard to wrap your, your arms around. So just taking a bigger picture. I mean, oftentimes we like to look at Netflix in the, in the world of streaming, but in the world of media, Rich, who else are they stealing from? I mean, they're gaining and those eyeballs are spending less time watching other things. I mean, I think you made the point that the average viewer watches what, seven movies a month on Netflix, which seems like a staggering amount. That's a lot of time that one has to sit in front of a TV every month. Well, you know what, Melissa, I think it's really an important point because when you think about what do tech companies do when. Well, I don't care whether we're talking about Netflix, Spotify in the audio world, Metta, Google, like all of Amazon, clearly all of these companies, they are laser focused on one thing, time spent. They don't want Melissa and Rich, they don't want us ever leaving. They want to keep giving us more to do, more ways to spend time on their platforms. That is not what you're seeing out of a lot of the traditional media companies, right? They're pulling back on the amount of content. Content. They're trying to get to profitability or squeak out a little bit of profits for Wall street managing quarter to quarter. They are not gunning it for time spent and really focusing on making sure you never leave. If anything, they say, here's one episode, come back for the next one. The next thing to watch next week or in six months or whatever it is. Like there just isn't enough content. And I think Netflix, what they showed this quarter is their investment in content is directly driving engagement and it's leading to more subscribers and obviously an increased willingness to pay more because they're raising price today. And I don't think anyone's going to be complaining about the price increases. Rich, Karen, thanks for being on. First of all, you've been, you've been loving this name probably since you were a little boy, before maybe even existed. So extraordinary quarter on so many metrics. But at some point, you know, it's. What is something that sort of makes you think, wow, it's sort of getting too expensive. A metric has to change for lying business or a stock price that makes you think, all right, maybe we've got to be neutral. Aaron, let's just go back. I mean, it was only a few years ago, right, that growth sort of stopped. Right. Like they hit a wall and they were really starting to struggle. I mean, it was a very different competitive landscape. I mean, that was a point in time. And I think if you were to look back, the one thing Netflix management, this was more in the Reed Hastings era. I think the one thing Reid made a mistake on is he didn't expect so many media companies to do something so uneconomic, meaning lose billions of dollars year after year. I don't think he anticipated that. And that crazy amount of spending with no line of sight to profits, I think was sort of the hiccup in Netflix. And they, they retrenched, changed. They went in and dealt with password sharing. They went back and launched an advertising tier, and it's been off to the races since. But there certainly have been, you know, what I would call air pockets that have sort of caused concern and fear among investors. I think what's different now, Karen, is that now you're at a point in time where Netflix is putting more money into content. They just did wwe. They just did the NFL. Like, they're investing more and more. They talked up their desire potentially for something like ufc. I mean, they didn't say it specifically, but they certainly want more live event content. UFC becomes available over the course, later this year, for a couple of years out, like there's more content available. Netflix is leaning in while everybody else is pulling back. And so it. It's hard not to get excited when you see that sort of dispersion in behavior. Netflix getting stronger, everybody else recoiling. All right, Rich. Thank you, Light Shed Partners. Stunning. Stunning is the word rich used right off the bat. Stunning quarter. It clearly was. I mean, Rich doesn't want you or him to leave Netflix. Well, me too. You know, I long thought that this is a company whose margin getting better you know, year after year when they kind of slowed down their content creation right when they were doing the original content, that was a big drag on those margins. And I always thought that they should broaden out horizontally, maybe something like a Spotify or something in the gaming and maybe that happens. Here's a $400 billion market, market cap company that's gotten very profitable. So to me, I think they're going to probably have to look a little bit away from video content and start thinking about how other people are using their time away from just video. Coming up, we've got more after hours earnings to get to you. We've got all the details on the United shares higher since the close. Back in two. Welcome back to Fast money. President Trump briefly taking some questions on Tik Tok Tock. Let's listen to what he had to say. Well, let me do this first. Are you open to Elon on TikTok? Are you open to Elon buying TikTok? I would be if he wanted to buy it. Yeah. I'd like Larry to buy it too. I have the right to make a deal. So the deal I'm thinking about, Larry, let's negotiate in front of the media. The deal I think is this. And I've met with owners of TikTok, the big owners. It's worthless if it doesn't get a permit. It's not like, oh, you can take the US the whole thing is worthless with a permit. It's worth like a trillion dollars. So what I'm thinking about saying to somebody is buy it and give half to the United States of America, half. And we'll give you the permit and they'll have a great partner, the United States, and they'll have something that's actually more valuable because they have the ultimate partner. And the United States will make it very worthwhile for them in terms of the permits and everything else. But so think of it. You have an asset that has no value or has a trillion dollar value. It all depends on whether or not the United States gives the permit. So what I'm saying is let the United States give the permit and the United States should get half. Sounds reasonable. What do you think? Sounds like a good deal to me, Mr. President. Yeah, he can afford it too. President Trump also making some comments about tariffs, saying we are Talking about a 10% tariff on China and February 1 would be the target date for those tariffs. So a lot happening in this press conference in the after hour session. We'll see what sort of reaction there is. But on TikTok that's an interesting thing for somebody to buy it and give half to the US in order to get an operating permit. Yeah, I don't understand how that works. I mean we can handle on another show. The tariff thing is the interesting thing. I think one of the reasons why rates went down and the dollar went down is because the concern, or lack of concern around tariffs in early February. Up next, final trades, final trade time. Tim Solid domestic. Wait for it. Rasm at ual Airlines are going higher tomorrow. Delta yes Baba, I know the A part. I know. I think American Airlines plays catch up to United Guy Del Mel thank you for watching Fast Money. See you back here tomorrow at 5 for more fast Mad Money with Jim Cramer starts right now. All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of cnbc, NBC Universal, their parent company, or affiliates, and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information the Fast Money participants consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Fast Money disclaimer, please visit cnbc.com fastmoneydisclaimer Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals like business management, strategic planning and effect effective communication. And you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at Capella Eduardo.