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Earnings from Netflix & Big Banks, & This Week in Cannabis Deals

On today’s episode of the Zacks Friday Finish Line, Associate Stock Strategist Ryan McQueeney and Editor Maddy Johnson discuss earnings results from Netflix and the big U.S. banks. The hosts also remember the legacy of Jack Bogle and chat about several new cannabis industry deals.

Make sure to subscribe and leave the show a rating on Apple Podcasts!

Before taking on this week’s earnings results and industry news, Maddy and Ryan pay tribute to the legacy of Jack Bogle. The legendary investor, who is credited with inventing index funds, passed away this week at the age of 89. Bogle will be remembered as a champion of the individual investor thanks to his accomplishments in creating low-cost funds focused on tracking broad markets.

Next, the hosts recap a busy week for the domestic banking industry. Solid results from most of the bank bellwethers helped lift stocks higher—even if some results were not quite what investors had hoped.

For instance, JPMorgan JPM missed EPS estimates for the first time in 15 quarters. Wells Fargo’s WFC Fed-mandated cap on growth was extended beyond management’s expectations. Morgan Stanley’s MS wealth management division was strangely sluggish in the period.

Nevertheless, these companies—and peers such as Bank of America BAC, Citigroup C, and Goldman Sachs GS—cooled fears that Q4 volatility would be devastating to banks and proved that the business is still relatively healthy heading into a New Year.

Netflix also joined the fray of companies reporting earnings this week, posting mixed results on Thursday afternoon. The video streaming company added more global paid members than analysts expected, but it missed revenue estimates and guided for negative free cash flow to continue throughout 2019.

Maddy and Ryan spend time recapping all of these earnings results on today’s show. Make sure to check out the episode for all the key figures as well as the Finish Line team’s take on the news.

Later, Maddy and Ryan discuss the cannabis industry, which has quickly entered deal-making mode on the back of hemp legalization in the United States.

Canopy Growth CGC announced Monday that it received a license to produce hemp in New York and would be setting up a facility there, Tilray TLRY said that it will team with Authentic Brands to create CBD-based products, and New Age Beverages NBEV partnered with Docklight to distribute Marley-brand CBD drinks—all in this week alone.

Why are these deals coming so fast? Which partnership seems to make the most sense? Will larger companies look to outright purchase any of these cannabis upstarts soon? Ryan and Maddy share their answers to these questions, and more, only on today’s Friday Finish Line!

If you feel that we missed something, or if you want us to cover a different story, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating on Apple Podcasts.

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