Happy Monday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

🟩 | US Stocks Rose on Monday. The S&P 500 rose by 1%, and the Nasdaq Composite rose by roughly 2% as tech stocks bounced back from last week’s sell-off.
📈 | One Notable Gainer: Shares of Tellurian rocketed 68% higher after Woodside Energy agreed to purchase the troubled natural gas exporter for $900 million.
📉 | One Notable Decliner: Ryanair’s stock plummeted 15% after the budget airline reported a whopping 46% drop in quarterly profit in the three months ending in June.
🤩 | Tomorrow's Trade: That’s Showbiz. Scroll down for more.

Plus, claim your free strategy guide to trade earnings season with today’s partner.

LAST FRIDAY’S POLL RESULTS

Are you bullish or bearish on Bloom Energy over the next 12 months?

🟩🟩🟩🟩🟩🟩 Bullish

🟨🟨⬜️⬜️⬜️⬜️ Bearish

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

AMC, Tesla, & ON Semiconductor

VAR1 (-69%) Varta’s stock plunged after the battery maker said its restructuring options would leave shareholders with nothing (Reuters)

AMC (+5%) Shares of AMC Entertainment popped after it announced a deal to restructure its debt load (Benzinga)

TSLA (+5%) Tesla’s stock rose after Elon Musk announced the company would have humanoid robots in “low production” for internal use by next year (YF)

MAT (+15%) Shares of toy maker Mattel rallied on news of an acquisition offer from private equity firm L Catterton (MW)

ON (+7%) ON Semiconductor saw its shares surge after striking a deal with Volkswagen to help its EVs go further on a single charge (Barron’s)

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OVERHEARD ON THE STREET

CNN: Thousands of Disneyland workers are voting to potentially authorize a strike, which would mark the first strike in 40 years.

Forbes: Microsoft has released a free tool to help people recover from the faulty CrowdStrike update that led to one of the biggest IT disasters to date.

WSJ: In other CrowdStrike news… CrowdStrike’s CEO is warning that hackers are trying to exploit the cyber outage.

CNBC: The “Trump trade” could unwind after President Joe Biden withdrew from the 2024 presidential election.

TH: Elon Musk announced that he’s building the “world’s most powerful AI by every metric” using 100,000 liquid-cooled Nvidia H100 GPUs.

TOMORROW’S TRADE IDEA, TODAY

That’s Showbiz

A Cheaper Option

Netflix (NFLX) debuted cheaper ads-included subscription options in November 2022, and they’re becoming increasingly popular.

According to the streaming company’s Q2 report, 45% of new subscribers opted for ad-supported plans when available.

A Small Piece of the Pie

Even with this momentum, advertisers haven’t exactly been flocking to Netflix. The entertainment giant brought in around $800 million in ad revenue through the first half of 2024. That might seem like a large figure, but it’s only 4% of Netflix’s total revenue.

Now, the company is cautioning shareholders that it doesn’t expect ads to drive revenues forward this year or next.

The company got a sizable boost from its password-sharing crackdown, but the momentum is fading. Advertising revenue is a key component of the streamer’s future growth.

Subscribers Slowing Down

Netflix added around 39 million subscribers over the past year, more than doubling this figure from the year before. However, the company predicted that subscriber growth in Q3 of this year will come in below last year’s Q3 total.

These figures won’t be relevant for long – Netflix plans to stop reporting subscriber numbers in 2025, creating a challenge for investors trying to gauge growth.

If Netflix wants to keep its spot as the top streaming platform, it needs to ramp up advertising quickly.

Are you bullish or bearish on Netflix (NFLX) over the next 12 months?

TOGETHER WITH STOCKEARNINGS.COM

FREE Guide: Unlock Earnings Season's Hidden Profits

15+ years of trading wisdom condensed into one powerful strategy. Learn to spot opportunities others miss during Q3 earnings.

ON OUR RADAR

BI: Nick Gerli, CEO of real estate analytics firm Reventure, predicts a 20% housing price decline in the South due to waning demand and new supply.

Reuters: Treasury Secretary Janet Yellen will face questions from G20 finance leaders this week over US policy commitments after Biden’s election withdrawal.

AP: The Environmental Protection Agency is awarding $4.3 billion in grants to fund projects in 30 states to reduce climate pollution.

Bloomberg: Sam Altman’s OpenResearch completed the largest study on basic income, testing the impact of $1,000 monthly payments to participants.

Reuters: Cathie Wood’s ARK ETF has seen net outflows of more than $1.8 billion in the last six months.