I'm Michelle Franzen a New York as a financial markets close on Wall Street for Thursday August 7 this -- story stock. Today a look at Netflix. And what CEO reed -- calls a quote. Minor milestone as... See More
I'm Michelle Franzen a New York as a financial markets close on Wall Street for Thursday August 7 this -- story stock. Today a look at Netflix. And what CEO reed -- calls a quote. Minor milestone as as company hasn't HBO and subscriber revenue. Here to discuss the so called milestone minor or not Aaron task of Yahoo! finance -- there. -- -- don't break down the Netflix vs HBO numbers that Reed Hastings is so happy about. Right well you I think he's being a little bit -- -- some minor milestone it's it's a big deal for Netflix -- might put on its FaceBook page. But in the last quarter Netflix had revenue of one point. 146. Billion dollars vs HBO's one point 1401. Billion dollars which. As breakdown of the difference of only five million dollars but it's the first time that Netflix has -- HBO. In revenue a obviously a big deal and something that Reed Hastings wanted to wave the flag about. Waving the flag. -- humble though as he took with FaceBook page for a little bragging he was also careful to be kind to HBO. Saying it rocks. Yes it was a humble brag for sure let's put it that way and -- Reed Hastings understands that. He is still the upstart trying to go after the in the entrenched giant in this world. But HBO. Has over -- 47 million global subscribers vs fifty. For Netflix and HBO still much bigger in the global market. They're much closer US. That puts us 36 million vs the he has 43 minutes -- would still. HBO is number one. In the world as we think of subscription based programming video TV otherwise. It's every -- I think he understands it you know. He's got to be careful. About how it right he's doing but it's definitely as he's -- NBC a minor milestone for the company. But it also says a great deal about Netflix not only sort of resurrecting itself in the last few years but also about its renewed popularity. -- -- -- -- -- is you know has done a tremendous amount of Orange and that is the -- black. And some other of their original programs and now there are some statistics that it's at its peak. Netflix is generating. As much as a third of all Internet traffic the United States -- mean that is just -- huge. Amount of traffic and -- they have certainly rebounded. -- in such dramatic fashion from the Qwikster debacle a couple years ago people thought that Reed Hastings have -- the company and it was dead and over and you know if you did that against them since then a lot of people on Wall Street. Had you have got your head handed to you because the stock -- -- phenomenally well the last couple years. And -- because they they have. Figured out the -- in -- and this is probably the key thing like they know so well -- if you like this program -- probably -- like these other programs and then. As you probably experience not experience against you've been watching in -- to spending -- hours and hours. On Netflix is going through that catalog and it's -- a very powerful. Recommendation engine that's really the secret sauce and that's the task at. And I'm event. This behind your right absolutely it's time that and it -- or not makes them a lot of money here on out lot. Yeah yeah exactly made -- target. I was using it -- minutes making it -- a lot of money union their their quarterly results the last year two years now I've just been phenomenal and they keep beating these higher bars of the streets that's for them and that's why the stock has them when it's done. Investors. As you mentioned like at break down at today's stock -- fourth. Frivolous target -- a big jump today and it was up yesterday as well so I don't know how much of this stock move today was about Reed Hastings pronouncement. Or if it's still about the fallout from the twenty -- century fox Time Warner deal. Going away I think you know maybe some people are viewing that. -- -- -- for century fox would look at Netflix now. As a possible deal would be a big chunk but so -- Time Warner. And you know also I I think. Some people feel like Time Warner is gonna struggle and HBO being -- -- Time Warner so that that what's bad for them is good for Netflix. -- the -- -- we should talk about the fact is that I think on Wall Street and certainly we in the media we like to look at you know Netflix -- HBO. They do that a lot of the same things but it's not exactly the same business model I think there is a real split to compare the other one too so. Everything on Wall Street is a relative game but somewhat separate business models. And I think a lot of people. -- -- a lot of Americans subscribe to both. HBO Netflix it's not a one or the other proposition they're both growing right now so which tells you that it that it's just a good business to be. Popular all the way around Aaron task from Yahoo! finance thanks for joining us thank you. And you've been watching story stock stay with abcnews.com. For your latest headlines I'm Michelle Franzen in New York.
This transcript has been automatically generated and may not be 100% accurate.