In Netflix We Trust

Happy Easter Sunday! 🐣 As we enjoy the season of renewal, let’s unwrap the biggest stories shaping business, tech, and the global economy—because the world didn’t take a holiday:

• Netflix Powers Through Volatility: Strong earnings and rising margins help Netflix hold steady as a market standout in Q1.

• America’s Spending Cities Are on the Rise: With Dallas joining the top 10 by 2040, U.S. metros continue driving global consumer power.

• Tesla’s European Woes Deepen: Sales plunge over 50% in key countries as Chinese EV makers and political backlash take a toll.

• China’s Manufacturing Dominance Reaches New Heights: From $134B in 1980 to $4.8T today, China now produces nearly a third of global manufacturing output.

• Trade vs. Tariffs: The Global Economy at a Crossroads: As protectionism surges and supply chains shift, the world questions whether globalization has peaked.

Netflix Keeps Climbing Amid Market Turmoil

Netflix rose in after-hours trading after beating Q1 estimates with EPS of $6.61 (vs. $5.67 expected) and $10.54B in revenue. 👏 📈 Operating margin hit 32%, up from 28.1% last year. While Netflix no longer reports subscriber numbers unless major milestones are reached, it continues to emphasize engagement and profitability. With goals to double revenue and hit a $1 trillion market cap by 2030, the company remains a stable performer amid broader market volatility, up 9% year-to-date.

U.S. Consolidates Role as Consumer Spending Giant

The U.S. continues to strengthen its position among the world’s top-spending cities, with Dallas set to join the top 10 by 2040. 🏙️💰Other cities like Houston, Phoenix, and Seattle are also climbing the ranks, reflecting the growing influence of Sun Belt metros. U.S. consumer spending has remained resilient, driven by a strong economy, low savings rates, credit use, and spending by affluent households. The World Data Lab projects that 83% of new global spending will be urban by 2040, with large, wealthy cities leading the charge.

Tesla Sales Plunge Across Europe as Chinese Rivals Gain Ground

Tesla’s sales fell sharply across several European countries in March 2025, with quarterly sales down 62% in Germany and over 50% in the Netherlands, Sweden, and Denmark, according to Reuters. 🚨 The declines are linked to rising competition from Chinese EV makers and backlash against Elon Musk’s political stances. The UK was the only European market to see growth (+3.5%), but Tesla’s market share there still dropped over 4 percentage points due to intensified local competition in a booming EV sector.

How China Became the World’s Factory

China’s transformation into the world’s top manufacturing nation has been dramatic. 🏭🏗️ In 1980, China produced just $134 billion in manufacturing output. By 2023, that number had surged to $4.8 trillion — about 30% of global output. The shift began accelerating after China joined the World Trade Organization in 2001, rapidly overtaking the U.S., which held the top spot until 2009. While America’s share of global manufacturing has declined from 28% in 2001 to 17% today, China’s rise reflects a four-decade industrial strategy that redefined global trade.

The World at a Crossroads: Trade or Protectionism?

Globalization, once a steadily growing force, may have peaked. 🤔 After recovering from the Covid-19 collapse and reaching a high in 2022, global trade as a share of GDP fell again in 2023. Rising nationalism, renewed U.S.-China tensions, and a new wave of protectionism — including fresh tariffs under Trump’s second term — have sparked uncertainty about the future of open global markets. While trade hasn’t collapsed, businesses are rethinking supply chains amid the unpredictability. Whether this marks the end of globalization’s golden era or just a pause remains to be seen.