Netflix Stands Out Amid Tech Selloff Driven by Tariff Concerns

As tariffs loom, Netflix's growth and resilience shine. The streaming giant's substantial subscriber gains and impressive revenue growth make it a standout pick for investors looking for stability in a volatile market.

Date: 08-04-2025

AI Rating: 8

Investor Outlook on Netflix's Positioning
With trade tensions escalating and tariffs threatening to disrupt the technology sector, Netflix has emerged as a significant outlier demonstrating robust growth amidst potential market turmoil.

Earnings Per Share (EPS)
Netflix is projected to grow its earnings by 24% in 2025 and 21% in 2026, reaching approximately $29.66 per share. This upward trajectory reflects the company's ability to enhance profitability through strategic pricing models and content diversification.

Revenue Growth
Netflix has successfully increased its revenue by 16% in 2024 to $39 billion, signaling a strong rebound from the previous years' more subdued growth rates. The company is expected to maintain an average revenue growth of 13% over the next two years, which is a positive indicator compared to the broader tech sector that is facing uncertainties. Such growth rates highlight Netflix's prowess in retaining and attracting subscribers, aided by its innovative offerings.

Market Dynamics
In light of the tariffs potentially impacting the broader tech sector, Netflix's relatively lower exposure positions it favorably. The report suggests that the streaming service's diversified content lineup and strategic advancements, such as live sports, are key factors in its subscriber retention and growth strategy. Additionally, Netflix's ad-supported tier has significantly contributed to new subscriber growth, reaching a record of 18.9 million in Q4 2024.

Current Valuation
Valuation metrics suggest that Netflix is trading at a considerable discount compared to its historical averages, presenting an attractive investment opportunity. With its stock significantly outperforming major indices and tech counterparts, combined with a successful implementation of stock buyback programs, Netflix is well-positioned for continued market appeal in the upcoming quarters.

Stocks: NFLX NVDA