Liontree Weekly Update
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Liontree Weekly Update
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“Our LT Weekly Update is a comprehensive weekly analysis aimed at helping our key corporate and investor clients cut through the noise and stay in front of what we view as the most important themes and developments driving the digital economy.”
- Leslie Mallon, Head of LionTree Public Markets

Nasdaq posted its 13 straight up session, which is the 15th longest winning streak on record!  That is thanks to favorable Trump comments about movement towards the end of the Iran war.  Importantly, crude oil prices were pushed to multi-week lows. Let’s hope for no surprises over the weekend.

Re-assuring comments regarding consumer spend resiliency and limited impact thus far from the geopolitical backdrop from key bank earnings this week also helped the market. TMT earnings also kicked off with heavy-weight Netflix reporting, though investors had hoped for more (see ). Sector prints will start to ramp next week.

See below for our focus areas in this edition. I especially wouldn’t miss where we dove into an incredible Stanford University AI-related dataset report.

**Last call-out for our most recent quarterly report, LionTree’s Lens – Spring 2026… CLICK HERE to access our report and video narration**

Have a great weekend. We’ll unfortunately be back to the 50o+ here in NYC vs the summer weather this week!

Best,
Leslie

Leslie Mallon

Head of LionTree Public Markets

PH: +1-917-364-6778

Netflix Is Heads Down In Execution Mode

It was another tough quarter for Netflix. While Q1 was essentially in-line with lowered expectations when excluding the WBD termination fee windfall, Q2 guidance fell below Street projections. With that said, mgmt still believes that it is on track to hit the FY2026 outlook, albeit back-end loaded with operating margins.

On the plus side, the recent price hike has been well received, and their price / value ratio remains compelling. In the US, Netflix subs are paying “the least per hour of viewing compared to other SVOD offerings” and “in some case, you’d have to pay two times per hour to get a competitive service.”

Investors have also been very focused on the Co’s engagement trends and, while not transparent, mgmt’s KPI of “member quality” hit an all-time high. More traditional measures like view hours were also up and the Co saw positive retention across regions y/y. All of this supports the argument that incremental products like gaming (still viewed as a huge opportunity), podcasts, and live events are enhancing stickiness rather than cannibalizing core viewing.

Speaking about live content, it was interesting to hear Netflix confirm that it is currently in discussions with the NFL, but still within a sports strategy of tent-pole events which has not changed.