Netflix Is Perfect Stock as Tariffs Rise
Netflix is close to tariff-immune. That may be why its stock has outperformed, and upcoming earnings could give shares another boost. The post Netflix Is Perfect Stock as Tariffs Rise appeared first on 24/7 Wall St..
Netflix Inc. (NASDAQ: NFLX) is a streaming business with a rapidly growing advertising business. Each is close to tariff-immune. That may be why its stock is up 14% in the past three months while the S&P 500 is down 11%. Netflix is about to announce earnings, which could give shares another boost.
24/7 Wall St. Key Points:
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Netflix Inc. (NASDAQ: NFLX) is close to tariff-immune.
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That may be why its stock has outperformed, and upcoming earnings could give shares another boost.
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Why the Stock Is So Attractive Now
One analyst described why the stock is so attractive. TD Cowen’s John Blackledge wrote, “Given macro volatility, we view Netflix as arguably the most defensive stock in our coverage universe amid any broader slowdown.” If tariffs trigger a recession, people may give up many things. A Netflix Standard subscription at $17.99 is not likely among them.
The average price target among the 48 analysts who cover Netflix is $1,066. The stock currently trades at $961. Thirty-three rate it as a “strong buy” or a “buy.”
In the most recent quarter, Netflix revenue rose 16% to $10.2 billion. The company forecast it to rise another 11% to $10.4 billion in the quarter about to be announced. In the recently reported quarter, subscribers rose 301 million from 260 million in the year-ago period. Netflix does not offer a forecast for future subscriber totals.
The company has made positive comments about its advertising business. Subscribers can get a Netflix service supported by ads, which drops the monthly cost of a subscription to $7.99 a month. Management commented, “We’re on track to reach sufficient scale for ads members in all of our ads countries in 2025. A top priority in 2025 is to improve our offering for advertisers so that we can substantially grow our advertising.”
There are no tariffs on streaming services because there is nothing to levy tariffs against. A recent Bloomberg headline read, “Netflix Defies Big Tech Slump as Wall Street Seeks Tariff Haven.”
Hefty tariffs have begun in the trade war with China. The United States may add other countries to the trade war as well. This would batter many American companies. Netflix is not among them.
Netflix Stock Price Prediction and Forecast 2025-2030
The post Netflix Is Perfect Stock as Tariffs Rise appeared first on 24/7 Wall St..
