2 Stocks That Could Thrive in a Tariff-Heavy Environment
President Donald Trump's decision to impose sweeping tariffs on imports from nearly every country in the world has resulted in one of the worst quarters for the U.S. stock market in years. Investors fear that the impact of this move, as well as the retaliatory actions that some countries have already responded with, will take a heavy toll on the entire economy.In this now-shaky macro environment, those who wish to buy stock may want to start by looking for companies that might not be as affected by a trade war due to the nature of their businesses. Netflix (NASDAQ: NFLX) and Visa (NYSE: V) are two great examples which fit that bill, but aren't just "tariff plays." Each can perform well in the long run. Netflix's business is somewhat insulated from the impact of tariffs because it has no physical products. It generates most of its revenue from subscriptions. That's not to say the streaming specialist will be entirely immune from the impacts of Trump's trade war. The streamer has a fast-growing, ad-supported subscription tier. If the tariffs lead to an economic slowdown, many companies could cut their ad budgets, which would likely affect Netflix.Continue reading
President Donald Trump's decision to impose sweeping tariffs on imports from nearly every country in the world has resulted in one of the worst quarters for the U.S. stock market in years. Investors fear that the impact of this move, as well as the retaliatory actions that some countries have already responded with, will take a heavy toll on the entire economy.
In this now-shaky macro environment, those who wish to buy stock may want to start by looking for companies that might not be as affected by a trade war due to the nature of their businesses. Netflix (NASDAQ: NFLX) and Visa (NYSE: V) are two great examples which fit that bill, but aren't just "tariff plays." Each can perform well in the long run.
Netflix's business is somewhat insulated from the impact of tariffs because it has no physical products. It generates most of its revenue from subscriptions. That's not to say the streaming specialist will be entirely immune from the impacts of Trump's trade war. The streamer has a fast-growing, ad-supported subscription tier. If the tariffs lead to an economic slowdown, many companies could cut their ad budgets, which would likely affect Netflix.
