Netflix Stock Can Weather an Economic Storm, Analyst Says -- Barrons.com

By Angela Palumbo

Netflix stock has outperformed the broader market this year, and one J.P. Morgan analyst believes this will continue despite economic uncertainty.

Federal Reserve Chair Jerome Powell said last week there are signs consumers are moderating spending as they evaluate how the White House's new policies, such as tariffs, affect the economy. This comes after the latest retail sales report disappointed and consumer sentiment declined in March.

Despite those concerns, J.P. Morgan analyst Doug Anmuth remains bullish on Netflix. He rates the streaming giant as Overweight with a $1,150 price target, which implies a 20% increase from the stock's most recent closing price of $960.29.

Anmuth cited Netflix's strong engagement, high entertainment value, and the accessibility offered by its low-price ad tier.

"We believe NFLX should prove relatively defensive against macro headwind," Anmuth wrote Monday.

Netflix said in January it generated a record 18.9 million paid net additions in the fourth quarter, boosted by company decisions to crack down on password sharing and to add less expensive ad tiers. The different pricing tiers can attract consumers who are feeling pinched but still want access to shows such as Adolescence and Bridgerton.

Netflix has also stepped into streaming live events, including NFL Christmas games, providing more incentive to get on the platform.

Confidence in Netflix's ability to weather a tough economic storm has helped push the stock up 8.7% this year and 54% over the last 12 months. Meanwhile, the S&P 500 has declined 2.2% this year and is up 10% over the last 12 months.

Other analysts are more cautious. Of the 54 surveyed by FactSet, 38 say the stock is a Buy, 14 say it is a Hold and two say it is a Sell.

Loop Capital analyst Alan Gould rates the stock a Hold with a $1,000 price target. He wrote in a note on Monday that Netflix "should be more economically resilient than most companies, although some may shift to the lower-priced ad tier, particularly after the price increase." Netflix said in January that it was raising prices.

Shares of Netflix were up 0.8% on Monday to $968.38.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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March 24, 2025 13:16 ET (17:16 GMT)

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