Netflix Inc. NFLX has been identified as a promising investment option by an analyst, demonstrating resilience amid market volatility.
What Happened: The streaming giant’s digital, consumer-facing business model and robust value proposition make it a strong contender even during a recession, according to Seeking Alpha analyst YR Research.
Netflix’s viewership saw a nearly 8% increase in Q1’25, indicating strong subscriber and revenue growth. Despite its premium trading, current consensus estimates seem conservative, leading to a $1,000 price target based on a 33x multiple on 2026 earnings, the analyst said.
The company’s growth is driven by its extensive original programming, superior digital platform, and a robust slate of licensed content. Netflix’s engagement and viewing figures have surpassed other paid streaming platforms, creating a cycle of content and subscriber growth that competitors find challenging to match.
Over the past decade, Netflix’s EPS has grown at an impressive 41% CAGR, and the stock has returned over 1,300%. The company estimates that it has only captured 40% of the total addressable market, indicating significant growth potential.
Netflix’s Q1-25 results showed a 7.6% Y/Y increase in Top 10 views, the fastest growth in the company’s tracking history. The company’s share of viewing, as measured by Nielsen, reached an all-time high of 8.6% in January.
Why It Matters: Global markets have been on a rollercoaster ride due to President Donald Trump’s new trade tariffs. The U.S. markets faced a severe downturn as tensions between the U.S. and China escalated following the announcement of new tariffs by President Donald Trump, leading to S&P 500 companies losing $5 trillion in value.
Meanwhile, U.S. stock futures plunged Sunday night, deepening last week’s dramatic selloff as the Biden administration held firm on its aggressive new tariff agenda despite intensifying market backlash.
Dow futures sank 1,257 points, or 3.26%, to 37,273, while the S&P 500 futures dropped 190.50 points, or 3.73%, settling at 4,919.75. The tech-heavy Nasdaq-100 took the hardest hit, plunging 807.50 points, or 4.60%, to 16,731.50 at the time of writing.
The U.S. dollar also lost ground, with the Dollar Index slipping 0.23% to 102.79, reflecting growing investor unease as global trade tensions escalate.
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