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Andrew Giancola
Good morning and welcome to the Business Show. Your go to source for money and finance news in 10 minutes or less. I'm Andrew Giancola and today we are covering China grounds Boeing deliveries as trade tensions soar and it pushes Boeing stock down more than 3% in pre market trading. And bank of America beats Q1 earnings, joining other big banks with stronger than expected results. And Netflix sets its sight on a $1 trillion valuation with bold ad revenue goals by 2030. And American Airlines joins the free Wi Fi club offering complimentary Internet for loyalty members starting in 2026. Johnson and Johnson tops estimates and raises this full year forecast. We've got all the numbers, all the headlines and what this means for your wallet. Let's get down to business. Boeing shares are under pressure after reports surfaced that Chinese officials are forbidding domestic airlines from accepting new Boeing jets. The move comes as tensions between the US And China continue to heat up following a tit for tat tariff escalation between the two global powers. Now Boeing is being hit with its stock down 3.5%. And Chinese airlines reportedly also told to stop purchasing US made airline parts and equipment. And Beijing claims Boeing planes are now cost prohibited under the new trade rules. Now China is a key growth market for Boeing and this delivery freeze threatens long term demand. And airplane orders, typically apolitical, are now squarely in the trade war crosshair. So the big question is, will Boeing try to redirect deliveries or face a production slowdown since China just grounded those Boeing deliveries and the trade wars next chapter, even airplanes aren't safe. Bank of America kicked off Tuesday with a win, beating Wall street estimates for the first quarter. And the bank reported earnings of $0.90 per share and 27.5 billion in revenue, lifted by stronger than expected trading gains and rising net interest incomes. Now the earnings per share hit 90 cents, outpacing analyst forecasts. And that revenue was strong with 27.51 billion for the quarter driven by that market activity. Now earnings season is in full swing with JP Morgan, Morgan Stanley and Goldman Sachs also topping Q1 expectation. And all eyes are on Citigroup, which reports earnings before the bell. Now strong reports from major banks suggests financial giants are navigating the current rate and policy environment better than feared. And higher interest rates are squeezing some sectors but boosting bank profits via net interest income. And with banks outperforming, markets may find some short term confidence even amid broader tariff volatility. Now bank of America adds another bright spot in a solid earnings week for Wall Street's heavyweights. But the pressure's still on as economic uncertainty looms. Hey, real quick, if you are enjoying the show, can you follow the show and leave a five star rating and review on your favorite podcast app truly would mean the world to us. Thanks so much. And now back to the show. Netflix shares are rising after a bold internal forecast revealing the company's ambitious target to double revenue by 2030 and hit a $1 trillion market cap. Now, according to a Wall Street Journal report, executives shared the vision in a private meeting with senior leadership, sending bullish signals ahead of Thursday's earnings. Now the stock is up 2% in pre market trading and the company aims to double that revenue by 2030. Now the big P ad push and they're targeting $9 billion in global ad sales, a major leap from today's levels. Now they have a $1 trillion market cap goal and it's currently valued at 400 billion. And so this is going to be a big, big, hairy, audacious goal. Now Netflix's pivot to ad supported tiers is central to this roadmap. And a trillion dollar target signals long term confidence in subscriber growth and monetization. Now these projections aim to solidify Netflix's dominance amid growing competition from Disney plus Prime Video and others. Now an interesting thing about these streaming services is a lot of them now have this ad platform on the streaming services and it's, it's starting to turn back into traditional cable where they are releasing one episode every single week. They are putting ads on some of these services. And how different is it from traditional cable? Not much. Now Netflix just rolled out the credits on the modest pass and hit play on a massive future. American Airlines is upping its loyalty game. Starting in January 2026, the airline will offer free inflight WI Fi to all members of its AA Advantage rewards program, joining a growing list of carriers turning Internet access into a competitive edge. Companies like JetBlue have offered free WI Fi for the long term, while Delta made it free for Skymile members back in 2023. And United is currently outfitting planes with SpaceX Starlink satellite wi Fi also planning to offer it free to loyalty members. Now United Airlines is set to report Q1 earnings after the Bell on Tuesday. And airlines are turning to digital convenience to boost customer loyalty. And this free WI fi means more streaming, working and connectivity during flights, raising passenger expectations as more carriers follow suit. Free Internet access may become the new industry standard. Now free wi fi at 30,000ft is becoming less of a luxury and more of a loyalty badge. All right. Last story today is Johnson and Johnson is off to a strong start in 2025, topping expectations in the first quarter and raising its operational sales forecast for the full year. The pharmaceutical and medical tech giant continue to show resilience even as shares dip slightly in pre market trading. Now the Q1 adjusted earnings per share came in at $2.77 versus $2.56 which was expected and it brought in $21.89 billion versus the 21.56 billion forecasted and full year operational sales outlook increased to $91 billion from the $89 billion forecast. Now shares are down 1% pre market despite being up 7% year to date. Johnson and Johnson obviously has a strong foundation and its continued strength in pharma and medtech keep keeps Johnson and Johnson a blue chip staple in an upward revision. Two full year sales suggests internal momentum. Now will investor sentiment catch up to Johnson and Johnson's revised guidance? We're going to find out more, but we know that Johnson and Johnson just delivered a healthy quarter and it's feeling strong enough to raise the bar for the rest of 2025. Listen. Thanks again for tuning into the business show. If you know someone who would find value in this episode, share it with a co worker, family member or friend. Also, if you enjoyed the show, please take a moment to leave a five star rating and review. It helps us reach more people with this mess. And don't forget to follow the show on Apple Podcasts, Spotify or your favorite podcast app. Thanks again for listening and we will see you on the next episode.