Core Viewpoint - The technology sector is experiencing significant volatility due to trade tariff concerns, but certain stocks, particularly Netflix, are showing resilience and potential for long-term investment opportunities [1][2][17]. Company Performance - Netflix has outperformed the Nasdaq, rising 48% in the past year compared to the index's 3% decline [8][14]. - The company added 18.9 million paid subscriptions in Q4 2024, marking its "biggest quarter of net adds in our history" [10]. - Netflix's global streaming paid memberships reached 301.63 million, up 16% year-over-year [11]. Revenue and Earnings Growth - Netflix's revenue grew by 16% in 2024 to 50 billion by FY26 [12]. - Earnings are projected to grow by 24% in 2025 and 21% in FY26, reaching $29.66 per share [13]. Competitive Positioning - Netflix's first-mover advantage and investment in original content have helped it maintain a leading position in the streaming market [6]. - The company is less exposed to tariffs compared to other big tech peers, making it a more stable investment during economic uncertainty [17]. Valuation Metrics - Netflix trades at a significant discount to its historical highs, with a price-to-earnings-to-growth (PEG) ratio of 1.8, close to the tech sector average [16]. - The stock has seen a 1,300% increase over the past 10 years, outperforming the Nasdaq's 230% growth [14].
Buy this Tech Stock for Safety as AI, Mag 7 Plunge on Tariff Fears