☕️ Netflix and chill

Good morning.

US quarterly earnings season continues to offer up some interesting developments. This morning Netflix confirmed it added 5.9 million subscribers in the June quarter, beating analyst estimates, and a sign that its password sharing crackdown strategy is working.

You don’t have to cast your mind back that far to remember a time when this would have lit a flame under the stock, but the shares are down ~5% in aftermarket trading because the company missed on revenue, and its revenue guidance also failed to impress.

Despite signs that inflation is subsiding and risk appetite is returning - its a reminder that in this market financial fundamentals still seem to matter more than raw growth.

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Ampol was one of the standout gainers on a good day for the broader market on Wednesday. The fuel refiner and distributor effectively confirmed its half-year guidance ahead of results in August, with fuel sales volumes up 24 per cent from a year ago, and earnings from convenience retail (or in other words, its servos) up off the back of strong shop performance and improved fuel margins.

THE QUICK SYNC

• Goldman Sachs’ profits slumped 58% in Q2, putting more pressure on CEO David Solomon. (Yahoo Finance)

• Westpac’s consumer and banking boss Chris de Bruin resigned as part of a restructure. (AFR | SMH | The Australian)

• Tesla booked record quarterly revenue of US$24.9 billion ($37 billion) but operating margins declined. (CNBC)

• Netflix gained 5.9 million signups globally in the June quarter after cracking down on password sharing. (The Verge | WSJ)

  • Netflix has signed up 1.5 million people so far to its ad supported product. (The Information)

TRADING FLOOR

M&A:

• Goldmans Sachs’ flyer on bus operator Ventura highlights its “infrastructure-like risk profile”. (AFR)

• Advent International has lobbed an unsolicited bid for Zimmermann. (AFR)

• Whitehaven Coal has drafted in Bank of America for a potential acquisition of at least one of BHP’s $3bn-plus coal mines. (The Australian)

• WAM is believed to have built a 15% stake in Investor Mutual’s QV Equities. (AFR)

• Alinta alleges 'discrimination' concerns in the Brookfield/Origin takeover. (AFR)

• Mason Stevens could be assessing the possibility of a sale as well as a float. (The Australian)

• Ramsay is said to be weighing a tilt at Cura Group. (The Australian)

• E&P Corporate Advisory could have a hard time selling Australian Vintage in the current market. (The Australian)

Capital Markets:

• None

VC:

• Lumi raised $15m in Series C funding led by Harel Insurance Investments & Financial Services. (AFR)

Others:

• Local investors are attempting to determine how much Macquarie Infrastructure Partners may be exposed to the toxic lead issue affecting US telecommunications via Cincinnati Bell. (AFR).

• A NSW cattle auction was settled by two farmers using a digital version of the Australian dollar backed by the Reserve Bank. (AFR)

THE WATERCOOLER