Netflix earnings, housing market, layoff concerns: Wealth!
On today's episode of Wealth! host Brad Smith breaks down key personal finance stories from the CrowdStrike (CRWD) outage to what home buyers need to know before entering the housing market. A recent CrowdStrike update caused a global outage that impacted Microsoft Windows (MSFT) systems across multiple industries. The incident has affected or even halted operations in banking, airline operators, and even emergency services around the world. Yahoo Finance tech editor Dan Howley provides a detailed analysis of the incident, shedding light on the concerns surrounding the small group of companies that are responsible for operating internet systems globally. Netflix (NFLX) reported its second-quarter earnings results and announced plans to discontinue its cheapest ad-free plan in the US and France. Citi managing director Jason Bazinet notes that Netflix's restructuring efforts are "complicated" as the company strives for profitability. However, he highlights that the ad-tier business has been "consistent with our expectations," with growth in sales, although it has been under-monetized. Meanwhile, the tech sector (XLK) is continuing to see a downturn as some investors on Wall Street are rotating out into other sectors and small-cap stocks (^RUT). EquitySet CEO Tony Zipparro comments on which areas of the market will be most sensitive to rate cuts: "That's capital-intensive industries, right? Where you've got not the greatest— where they're trying to get the profitability, right? You've got a lot of debt on the books. You really have to be cautious." Many would-be homebuyers are choosing to sit on the sidelines and instead rent for longer as housing costs remain elevated. Yahoo Finance contributor Ross Mac joins Wealth! to break down some scenarios where either buying or renting could make the most sense for you. Chase Home Lending Head of Consumer Originations Sean Grzebin believes the housing market is getting some relief, explaining, "Now that rates have been high for some period of time, we're starting to see a little easing. I think customers are becoming more comfortable listing, and we're actually seeing inventories grow for the first time in several years." 70% of employees are bracing for potential layoffs, whether by saving money or applying to new jobs, according to a survey from MarketWatch Guides. MarketWatch Guides data journalist Matt Brannon lays out one of the biggest finds in the study: "One of the big ones is that age gap. So we found that Baby Boomers feel more secure in their jobs. It makes sense. They've worked for decades building up their seniority. Whereas Gen Z workers, 88% are taking steps to prevent, a job loss trying to preempt it in some sort of way, layoff anxiety is a term that we asked about to find out just how concerned people are and a majority of Gen Z workers and nearly half of Millennials are anxious about being laid off. " This post was written by Melanie Riehl