Apple Sinks, Netflix Soars, Subway Sued

Matt Nesto analyzes the morning business headlines
8:41 | 01/24/13

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Transcript for Apple Sinks, Netflix Soars, Subway Sued
And there's the opening bell for this Thursday January 24. Annual -- in New York breaking news weekly jobs claims have fallen to -- five year. Plus shares. Apple and Netflix are spiking and opposite directions. Joining me now to discuss the top business headlines at this hour is Matt manifesto he is of course the -- a break out and our partner Yahoo! finance good morning -- And heck of a good guy left that I think you -- good morning. -- that's right. All right let's with apple and Netflix both making big moves first apple is tumbling. On its earnings report which came out after yesterday's closing bell. What set off alarms with investors. Well you know it's amazing immunity if you look listen Tim Cook on the conference call he call -- an extraordinary. Quarter and rightly so with a record revenues and record sales of their two biggest products the iPhone in the iPad. But the problem was is that -- -- that you -- Michael Phelps breaking Olympic records. Some -- and break them. Enough and people were sort of upset so that was what we're seeing here. The stock is getting -- all -- as opposed to. -- -- Is preposterous but you know it is a game of expectations that we play. And so by some measures -- analysts are a little bit jittery here that's that ultimately it's gonna come down to investors. And I wouldn't be surprised to -- some bargain hunting. -- the -- today. -- just -- gonna -- -- some people are looking at this as a buying opportunity. Yes very -- so. And you know it -- there's people are saying I'm done I'm out it depends on where you got any you know we bought the stock at forty bucks a few years ago. Then you are only care of -- -- you know I mean you do care about you not and a you know do anything -- long term investor but if you've been looking for a good time to get enemy the stock is now down 35%. From a high hit record high hit just four months ago who's been a sharp sharp give back. Whether it's gonna take off from here who knows but there's a lot of cash. On the company's books and you know it's not expensive company it is incumbent is still growing. Immensely. It's -- the they have some expectations issues in terms of managing. The expectations of Wall Street. -- -- is coming in terms of expectations we keep hearing rumors of an apple TV is actually going to materialize and could something like that. Really turn everything around. I think so you know the company's you know clearly saying they're still very interested in in TV but you know at some point. You know you have to stop talking about it and deliver something and I think the problem that they have is that the bar the Steve Jobs -- so high. For all new category launches you know the starting with the iPod the lowly iPod way back when was a game changer the iPhone game changer. The iPad category killer you know game changer and then to go -- TV. -- -- want to do is go into a TV compete you know side by side we're seeing already. That when side by side comparisons are -- there's always going to be cheaper. Somewhat comparable Asian alternative thinking Samsung today not what they want to do they want to come up with a category killer and that's why it's so hard to get -- TV but they definitely. Need to and want to get into the living room and unify that total experience. Yeah that will be in that will be in a moment to but you're right you're going to have to sort of blow consumers away with what they what they bring out there to justify the price point which I'm sure will be quite high all right let's want to Netflix its shares were up 36%. In premarket trading why is this company suddenly red hot -- -- just a little while though are talking about the the end of Netflix. Well part of it has to do with the fact that it was previously stone cold it has made a nice rebound from the some -- mean this is a company. That had been doing so poorly they got itself kicked out of the NASDAQ-100. Index though it is coming back in a big way they came back with a surprise profit. For the last quarter better than expected results and that the company. Is getting more of those online streaming subscribers are also about to launch their first. Original production you know. These seem to be the cutting edge in media circles right now all the hot shows that when all -- and these. Tend to be are often are now produce on the new networks if you only AMC's and such like no offense to. -- -- He says it is Yahoo!'s two and everybody's getting into the content business in content sharing. Including Netflix so there's a buzz going on in this is a very volatile. A stock that has a lot of momentum -- -- back after a really really. Heart beat down previously. -- is sending them because I I'd noticed that to myself I like most Americans these days I think I'll never watch anything when it actually comes on TV we watch everything on demand these days and I used to you got a lot on Netflix but -- noticed now that Netflix doesn't. It's no different than let's say Hulu plus or apple TV there all kinda carrying all the same stuff and so therefore there's no none of these. Seem to have a big edge at least when it comes to that category. Target just people like us -- contact my friend that's what separates it's not about the media -- It's about the content and that's really where it's gonna come down to -- course biased. As talent so to speak but you -- really that's where it's gonna go to. Because people don't care where they consume they just want to be able to do it when they want to and where they want to on the device of their choice. That's right all right Philip Howard opera Netflix -- -- -- morality and I think that. Her weekly jobless claims came on the day Saturday morning to a fox -- -- is that we segue right -- -- -- -- -- Right -- and that is all the little unbelievable is that -- more than was expected. Yeah -- was is -- you know I mean these are these are numbers at the margin to me it's hard to get your head around you know that many people but yeah I was it was better than expected. And it's the best number we see we have rebound below 350 of them in years so we -- way below down to 330 and so we'll see you know I mean it's the new year lots is going -- -- -- catch up and mean. It's a week's number but it's a good number and down not a great number I mean. We at least -- -- weeks ago but you know there's always going to be. A couple of hundred few 100000 people filing initial claims the real big important number of course is going to be. Friday from a -- a week from Friday. All right -- numbers aren't enough to cause a huge party and Wall Street in the market accounts. It's you know it's like gold coins on the scale he you know -- but one -- April 1 over there. Good bad you know -- got lots going on the Europe so this is a good one this is a gold -- and on goods yeah. I haven't been like that are now -- and -- the subway sandwich chain is now facing lawsuits. Because its foot long sandwiches are apparently shorter. Then advertise that we've been reporting this story for awhile and it that was interesting that the subway PR came back at one point with a statement table foot long is not meant to describe -- -- it's just sort them. -- -- -- -- Really because I have a full lung disease accidents and traffic. Mr. subway does not really meant to describe six -- -- RI asked him how the F. They're there they're blowing I mean I see this as they are great PR opportunity to be like wow. You know we've never really measured -- we cut them in the you know in the baking they shrink you know you know out of its big Macs or or whopper but it's always the pre -- -- quarter pounder pre -- -- all these little caveats. We get -- you know people file lawsuits all the time but the you know the truth of the matter is you know what he wanted to stretch the role of you have to be liberal. To do it but that this is a marketing opportunity -- -- Will give you -- that will give view you know forget the -- will give you six inches. For you know get people in stores perhaps what they need to do so because they have they have a good thing -- right now they're actually. They're actually doing quite well. And I -- -- some kind of I think bridges that gap between the fast food and you don't feel too badly about eating it cut they lunged. I think it's good -- -- make this into some kind of joke that I think would be really fun if they had a little creative thinking about it. Absolutely. It's that whole roll layup of of a marketing. Idea to take a bad thing and turn it around whoops I we owe you an -- America. Exactly in your -- out with -- how according. The -- it. All right now let's look at it out but got up about 24 points that's at Madison van is that you're -- -- -- without all that. That's the ones that you so much Matt.

This transcript has been automatically generated and may not be 100% accurate.

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