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Netflix (NFLX) lifts 2025 revenue guidance to $45.2B while advancing global ad tech and live content. (00:23) Peacock’s (CMCSA) latest price hike makes its ad-supported plan the costliest vs. rival streamers. (01:30) Union Pacific (UNP) exploring deal to buy Norfolk Southern (NSC) – WSJ. (02:35)
This is an abridged transcript.
Netflix (NASDAQ:NFLX) -1.3% in premarket action despite reporting a Q2 beat and raising full-year revenue guidance.
Revenue rose 16% Y/Y to $11.08B, topping expectations, while operating income surged to $3.78B from $2.6B a year ago.
Operating margin improved to 34.1% (vs. 27.2% Y/Y).
Net income climbed 46% to $3.13B. Netflix now sees FY revenue of $44.8B–$45.2B, up from a prior view of $43.5B–$44.5B (vs. $44.74B est.).
The company’s content slate has been notably loaded toward the second half of 2025, but even so, viewers watched 95B hours in the first half (up 1% year-over-year).
And live programming is expanding, including two marquee boxing matches in the third quarter and another NFL doubleheader on Christmas Day.
Peacock, the NBCU-owned (NASDAQ:CMCSA) streaming platform, will hike its prices for new subscribers by $3 per month, starting July 23, according to a report from Vulture on Thursday.
The report said the cost of the ad-supported plan would go up 40% to $10.99, and the price for the ad-free plan would go up 20% to $16.99. Existing subscribers will be hit with the new rates on or after August 22.
The monthly cost for the Peacock subscription with ads is currently the highest when compared to rival streaming platforms.
Max (WBD), Hulu, and Disney+ (DIS) with ads are priced at $9.99; Prime Video (AMZN) standalone plan costs $8.99; and the ad-supported tiers of Netflix (NFLX) and Paramount+ (PARA) (PARAA) are $7.99 each.
The price increase comes after a $2 hike last year and is also due to the hefty investment in sports content—namely the NBA, coming on the platform in October. Peacock is shelling out nearly $27B over 11 years for the NBA.
Norfolk Southern (NYSE:NSC) +3.4% premarket.
The Wall Street Journal is reporting that Union Pacific (NYSE:UNP) is in early-stage talks to acquire its smaller rival, in a deal that could create the largest rail operator in the U.S.
In a potential acquisition, Union Pacific (NYSE:UNP) would gain access to Norfolk Southern’s (NYSE:NSC) 19,500-mile route that predominantly spans 22 eastern U.S. states.
This would further its dominance by creating a coast-to-coast system, which would be the only such system in the U.S.
The WSJ report comes after Semafor reported Union Pacific (UNP) was working with Morgan Stanley to explore an acquisition of a rival.
Any deal would face serious scrutiny from regulators including the Surface Transportation Board, as well as the U.S. Department of Justice, investors, Amtrak and labor unions.
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Dow, S&P and Nasdaq futures are in the green. Crude oil is up 1.1% at $68/barrel. Bitcoin is down 0.5% at $118,000. Gold is up 0.4% at $3,352.
The FTSE 100 is up 0.3% and the DAX is up 0.4%.
The biggest movers for the day premarket: Interactive Brokers (NASDAQ:IBKR) +5% — Shares rose after Q2 results topped expectations, fueled by surging trading activity.
On today’s economic calendar:
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