Netflix extends gains, currently up 6.7%, less affected by tariffs, emerging as a safe haven stock?

Netflix extends gains, currently up 6.7%, less affected by tariffs, emerging as a safe haven stock?

Netflix (NFLX) shares have extended their recent gains, closing at $1,073.03 on April 22, 2025, up 6.7% from the previous week. The stock has been less affected by economic concerns, including potential tariffs, and has emerged as a safe haven investment. The streaming giant posted strong first-quarter earnings, with revenue of $10.54 billion, a 12.5% increase year-over-year, and earnings per share of $6.61, a 25% increase year-over-year [2].

The company's stock has been buoyed by positive analyst ratings and projections. BMO Capital Markets raised its price target to $1,200, reflecting confidence in Netflix's ad growth and margin expansion strategies [1]. Other analysts have also expressed optimism, with Guggenheim's Michael Morris raising his price target to $1,150 and BMO Capital's Brian Pitz increasing his target to $1,200 [2].

Netflix's co-CEO Gregory Peters has expressed confidence in the company's resilience during tough economic times. Peters noted that the entertainment industry has historically been resilient and that Netflix has shown similar resilience, attributing its popularity to its low-cost ad plan and strong content offerings [3]. The company's ad-supported subscription tier has proven to be popular, with over 55% of new subscribers in markets where it's available choosing the ad-supported option [2].

Netflix's strategic moves, including the launch of its Ad Suite in the United States and plans to expand internationally, are expected to drive significant revenue growth. The company has set an ambitious target to double its revenue by 2030 and achieve a $1 trillion market capitalization [2]. Despite the economic uncertainty, Netflix's strong financial performance and strategic initiatives have positioned it as a safe haven stock for investors.

References:
[1] https://www.investing.com/news/analyst-ratings/bmo-raises-netflix-stock-price-target-to-1200-on-ad-growth-93CH-3993968
[2] https://www.theglobeandmail.com/investing/markets/stocks/NFLX-Q/pressreleases/31961820/netflix-stock-nflx-surges-on-strong-q1-earnings-and-1-trillion-market-cap-target/
[3] https://finance.yahoo.com/news/netflix-able-skirt-effects-trump-161846702.html