By Gavin Boyle
As the stock market continues to tank, Netflix has served as a rare bright spot, continuing to find gains surrounded by a sea of losses.
“Netflix [is] playing offense, while stocks remain defensive,” said JPMorgan analyst Doug Anmuth, per Yahoo Finance, adding the company remains the “cleanest story in the internet.”
“We’re paying close attention clearly to the consumer sentiment and where the broader economy is moving,” noted Netflix co-CEO Greg Peters, “But based on what we are seeing by actually operating the business right now, there’s nothing really significant to note.”
Netflix remains one of the only major companies able to make such a claim as even its tech peers have seen massive declines in their stock valuation. Netflix’s stock is up over 17% YTD, while other giants like Apple, Amazon and Google have all seen drops of over 20%. In the pat five days alone, Netflix’s stock has risen 11% while the NASDAQ Composite and S&P 500 have fallen roughly 3% over that same time.
The fall in the markets is largely tied to President Trump’s introduction of worldwide tariffs and the uncertainty that has since ensued causing great volatility in the market.
Related: ‘Just Getting Started’: Netflix Reaches 70 Million Users on Ad-Supported Tier
“The level of the tariff increases announced so far is significantly larger than anticipated,” said Federal reserve Chief, Jerome Powell. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth. Both survey- and market-based measure of the near-term inflation expectations have moved up significantly, with survey participants pointing to tariffs.”
This helps explain why Netflix’s competition has seen a drop in their prices, as even if companies like Disney are not directly affected by the tariffs, they still suffer as the economy weakens as consumers have less extra money in their pockets to spend on entertainment. Even in this rough economic environment, it appears that Netflix remains resilient through a strong library that has something to offer for everyone.
Furthermore, through its ad-supported tier, consumers are able to access the service for as little as $7.99 per month. Disney+ and Max, in comparison, both cost $9.99 per month through their ad-supported tiers.
More than anything before, Netflix’s continued gains in a market full of losses proves just how out of its competition’s league it is. As the impact of the tariffs continues to play out across the economy, it appears that Netflix will continue to add subscribers to its service as its competitors struggle to keep their numbers up.
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