Netflix's earnings report looked different this time around

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Good morning. President Donald Trump said Thursday that he expects an agreement "over the next three to four weeks" that would end the escalating trade war with China. Experts told BI which country has the upper hand.

In today's big story, Netflix delivered a big beat in its first earnings report without subscriber numbers.

What's on deck:

Markets: Eli Lilly's new weight-loss pill is showing promising results. Investors love it.

Tech: Silicon Valley is feeling great about AI agents — but they're still very far from perfect.

Business: CEOs of American-made businesses are excited about a US manufacturing comeback. It will just take time.

But first, Netflix reports.

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The big story

What stock sell-off?

Netflix reported a big earnings beat in its first-quarter results on Thursday.

Earnings rose 25% to $6.61 a share, comfortably beating analysts' estimates of $5.68. Sales grew 13% to $10.5 billion, in line with expectations.

The streaming service's shares were 3% higher in after-hours trading.

Notably, the report looked a little different this time around. For the first time, Netflix did not include any specific quarterly subscription numbers, a change the streaming giant had previously announced.

Instead of subscriber numbers, Wall Street analysts looked for details about ad sales and Netflix's plans for sports and creator content.

Advertising is one area where Netflix is trying to expand and compete with the likes of Amazon.

Netflix launched its ad tech platform on April 1, it said in its earnings announcement, and is "on track to roll it out in our remaining ads countries in the coming months."

Meanwhile, Netflix co-CEO Ted Sarandos said video podcasts could be the next format to appear on the streaming service.

"As the popularity of video podcasts grows, I suspect you'll see some of them find their way to Netflix," Sarandos said. His comments confirmed earlier reporting by BI that Netflix is exploring potential deals with video podcasters as it looks to its next phase of growth.

Despite worries about an economic slowdown, Netflix continues to prove itself to be a recession-resistant stock.

Read the full story.

3 things in markets

1. UnitedHealth's shares are plunging. The insurance firm recently posted disappointing earnings and downgraded its 2025 outlook. The stock fell 22% on Thursday, dragging the entire health insurance industry down with it.

2. Investors <3 Eli Lilly's new weight-loss pill. The company announced positive data results from its new GLP-1 weight-loss pill, orforglipron, prompting Eli Lilly's stock to surge 14%. The pill could greatly expand patient access and significantly reduce cost.

3. What it's like to work at a hedge fund. The industry, which is dominated by the Big Four multistrategy firms, is known for eye-popping payouts and relentless turnover. Here's what it's like to work in the fast-growing sector.

3 things in tech

1. ICE just ordered $30 million worth of Palantir tech to track immigrants. The deal includes software called ImmigrationOS to track self-deportation and visa overstays, according to a contract reviewed by BI. ICE says the deal is necessary to carry out President Trump's immigration mandates.

2. AI agents still have a long way to go. These agents are like powerful virtual assistants, but they still make mistakes — and those compound. Here's how one wrong move can derail a whole task.

3. It's a mess to compare the alphabet soup of AI models. Companies often use benchmarks to measure AI performance, but the industry is becoming skeptical of them. Meta, for instance, was accused of gaming a benchmark after it released new Llama models.

3 things in business

1. TikTok's China and Singapore leaders tighten control. Global leaders will now oversee a division of TikTok's e-commerce team, according to a company memo seen by BI. The changes will shape its development in Latin America, where the app is rapidly expanding.

2. What it takes for a made-in-America comeback. CEOs of domestic manufacturing companies are rooting for a US-grown renaissance. They're optimistic it can be done, but they also say it will take time to do it right.

3. Some Starbucks baristas aren't thrilled with the new dress code. Three store employees told BI the chain's new dress code will likely result in out-of-pocket costs. They're also concerned that Starbucks is leaving bigger problems unresolved.

In other news

• Another federal judge says Google is a monopolist.
• Trump Media wants the SEC to investigate a hedge fund that has a $105 million short on the company.
• America's favorite food group may soon get hit hard by Trump's tariffs.
• Russian oil prices are sliding. That's not enough to stop Putin's war machine — yet.
• How junior bankers can survive the deal slowdown on Wall Street.
• Gen Z survey: We're looking for early-career tech workers and interns to share your experiences.
• Why are Pentagon officials suddenly dropping like flies? Leaks, power, and irrelevance.
• Humanoid robots are coming to a warehouse near you.

What's happening today

• Luigi Mangione appears for court hearing in Manhattan.

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York City. Hallam Bullock, editor, in London. Ella Hopkins, associate editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Elizabeth Casolo, fellow, in Chicago.