Morgan Stanley lists Netflix as a top pick: capable of withstanding market weakness
Morgan Stanley has listed Netflix's stock as its "preferred stock" and believes that the streaming giant has the ability to withstand the current tariff situation. Morgan Stanley stated, "We expect Netflix to demonstrate relative resilience in the face of a weak global macroeconomic environment." The firm reiterated its "outperform" rating on Netflix, with a target price of $1,150, representing nearly a 22% upside from the stock's closing price on Wednesday. Morgan Stanley analysts noted that the recent pullback in Netflix's stock price represents a buying opportunity. The firm pointed out that Netflix is showing good momentum in its core subscription business, with members watching nearly two hours of programming per day on average. The firm added that even if the advertising market struggles amid escalating trade tensions, this momentum would reduce the company's overall risk. Additionally, Morgan Stanley noted that Netflix also has operations outside the United States, and the company has previously had to deal with rising production costs and streaming taxes. Analysts stated that the company "typically" passes these cost increases on to consumers
According to Zhitong Finance APP, Morgan Stanley has listed Netflix (NFLX.US) stock as its "preferred stock" and believes that the streaming giant has the ability to withstand the current tariff situation. Morgan Stanley stated, "We expect Netflix to demonstrate relative resilience in the face of a weak global macroeconomic environment." The firm reiterated its "outperform" rating on Netflix, with a target price of $1,150, representing an upside potential of nearly 22% from the stock's closing price on Wednesday.
Morgan Stanley analysts indicated that the recent pullback in Netflix's stock price represents a buying opportunity. The firm noted that Netflix is showing good momentum in its core subscription business, with members averaging nearly two hours of viewing per day. The firm added that even if the advertising market struggles amid escalating trade tensions, this momentum would reduce the company's overall risk.
Additionally, Morgan Stanley noted that Netflix also has operations outside the United States, and the company has previously had to deal with rising production costs and streaming taxes. Analysts stated that the company "typically" passes these rising costs on to consumers