Podcast Summary
Microsoft outage, CrowdStrike: A Microsoft outage caused by a CrowdStrike update disrupted various industries, including aviation, banking, hospitals, and broadcast media, leading to cancellations and delays. Despite this, Netflix reported strong earnings and user growth but a shortfall in free cash flow.
The CrowdStrike Cybersecurity Platform Falcon Sensor update caused a major outage affecting Microsoft services, leading to disruptions in various industries such as aviation, banking, hospitals, and broadcast media. The outage resulted in the cancellation and delay of numerous flights, with Frontier Airlines, Sun Country, and Allegiant being significantly impacted. Microsoft resolved the issue overnight, but some residual impact remains. Meanwhile, Netflix reported strong revenue and user growth in its second-quarter earnings, though free cash flow took a step back. Notably, Align Technology is partnering with Costco to launch an online program that offers Costco members a $400 credit for Invisalign treatment upon purchasing a $100 e-card from Costco.com. Despite the free cash flow shortfall, Netflix's earnings per share and user growth exceeded expectations. The CrowdStrike outage highlights the potential risks of relying on third-party software, while Netflix's earnings report underscores its continued growth and the importance of managing cash flow.
Verizon's new ad program: Verizon is shifting ad budget to local providers to reach new customers, a move Stiefel views favorably, amidst market downturn and other business news
Verizon is launching a new program to redirect a portion of its advertising budget towards local preferred line providers, which Stiefel believes will effectively reach new customers and has a favorable view of the program. This news comes as the Federal Reserve and OCC hold a joint hearing on the Discover Financial Capital One Deal, and several other notable events are taking place in the business world. Markets are down this morning, with Dow, S&P, NASDAQ futures, Crude Oil, and Bitcoin all experiencing losses. The FTSE 100 and DAX are also down in the world markets. Hawaiian Electric is one of the biggest movers of the day, up 38% following a report that the utility had tentatively agreed to pay over $4 billion to resolve Maui wildfires lawsuits. Key economic events today include speeches from John Williams and Raphael Bostic of the Federal Reserve.
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