Need to Know: Here’s what the Netflix haters don’t get about the soaring stock

With the government shutdown over, investors today are homing in on earnings — and maybe how the Davos crowd is solving the world’s problems.

On the earnings front, Netflix NFLX, +3.23% bulls are once again high-fiving over the company’s latest report. A blowout beat in the subscriptions department has put the stock on track for a $100 billion market cap.

There is still bearish buzz over the streaming giant’s big-spending ways, but Ross Gerber from money manager Gerber Kawasaki says the skeptics just don’t get it.

“People don’t understand that if you spend money on, let’s say, making a TV show or movie, it’s not like you’ve spent the money,” Gerber tells CNBC for our call of the day.

“You’ve invested in it. It’s going to stay on Netflix forever. So we want original programming, and the programming is amazing, and it proved it this quarter.”

The handy chart below from SeeItMarket scribe Sean Emory shows the company’s “terrible” cash burn, as well as other stats.

FBR analyst and Netflix bear Barton Crockett has warned on CNBC that “growth is still slowing, and that’s a dangerous place for a stock like this.”

But Netflix bulls are having none of it as the stock looks set for a big up day, with Gerber talking about “huge growth potential” and shouting “Analysts, think big!”

Read more: Kevin Spacey scandal cost Netflix $39 million

And see: Netflix sees sharks approaching from both sides in Apple and Disney

Key market gauges

Futures for the Dow YMH8, +0.08%  , S&P 500 ESH8, -0.07%  and Nasdaq-100 NQH8, +0.04% have been choppy, after the Dow DJIA, +0.55%  , S&P SPX, +0.81% and Nasdaq Composite COMP, +0.98% scored all-time closing highs yesterday amid signs the partial government shutdown was over.

Europe SXXP, +0.11% and Asia have largely been seas of green, as oil  CLH8, +0.41% also advances. Gold GCG8, +0.29% is up as well, while the dollar index DXY, +0.14% is slightly higher. Bitcoin BTCUSD, +0.57% is trading around $10,200 after South Korea banned anonymous trading of cryptocurrencies.

See the Market Snapshot column for the latest action.

The quote

It’s Davos time: Brace yourselves and dress warmly.

“It’s like going into the belly of the beast and laying out his alternative vision of the world. I wouldn’t expect him to alter his message or pull his punches when it comes to America First.” — Michael Froman, who served as U.S. trade representative under Obama, is among the those offering predictions on how President Trump will approach Davos.

Meanwhile, Melania Trump reportedly will skip the Swiss soirée for one-percenters, also known as the World Economic Forum.

The buzz

First Solar FSLR, -1.53% and Whirlpool WHR, -0.53% look like they’re among the winners after Trump approved tariffs on solar-panel imports and imported washing machines.

A magnitude 7.9 earthquake struck off the Gulf of Alaska early today, prompting tsunami watches for parts of the U.S. West Coast.

J&J JNJ, +0.53%  , P&G PG, +0.90%  , Verizon VZ, +2.99%  , Travelers TRV, +1.09% and Kimberly-Clark KMB, +1.23% are among the big names on the earnings docket before the open.

In M&A news, Bacardi plans to pay $5 billion for Patrón tequila’s parent, and Fox’s FOXA, +1.80% bid for Sky SKY, +2.24% is drawing pushback from U.K. regulators.

Bill Ackman’s embattled Pershing Square hedge fund is laying off staff, and Facebook’s FB, +2.25% CMO is reportedly leaving.

Trump signed a bill last night ending the three-day government shutdown, as Senate Democrats agreed to the bill in exchange for a promise on immigration issues.

The cashierless Amazon Go store finally opened.

The chart

Both sides think they are winning?

We’re a little over a year into the Trump’s presidency. The U.S. appears as divided as ever, suggests the chart above based on a WaPo/ABC poll. (H/t Daily Shot)

Random reads

Neil Diamond, diagnosed with Parkinson’s, is retiring from touring.

There is no “Friends” movie — it’s just the latest fake news on Facebook.

Here’s who could get one of the NBA’s best jobs after the Bucks fired Jason Kidd.

A volcano-triggered avalanche kills a man at a Japanese ski resort.

More from the Davos types:

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