2 Stocks That Could Thrive in a Tariff-Heavy Environment

Group 1: Economic Impact of Tariffs - President Trump's decision to impose sweeping tariffs has led to one of the worst quarters for the U.S. stock market in years, raising concerns about the overall economic impact [1] - The retaliatory actions from other countries in response to these tariffs are expected to further affect the economy [1] Group 2: Netflix - Netflix's business model is somewhat insulated from tariffs as it generates most of its revenue from subscriptions rather than physical products [3] - The company may still face challenges if an economic slowdown leads to reduced advertising budgets, impacting its ad-supported subscription tier [4] - Despite potential subscriber losses during a recession, Netflix is well-positioned for long-term growth due to its strong revenue, earnings, and free cash flow [5] - Netflix has an addressable market of $650 billion, of which it has captured only 6%, indicating significant growth potential [6] - The company is expected to benefit from the ongoing shift from linear TV to streaming, making it a strong buy-and-hold option [7] Group 3: Visa - Visa operates as a leading provider of financial services, facilitating digital transactions without issuing credit cards or providing loans, which reduces its exposure to borrower defaults during recessions [8][9] - The potential for higher inflation due to tariffs could benefit Visa, as its fees are a small percentage of transactions, leading to increased revenues with higher spending [10] - Visa's long-term prospects are strong due to the shift away from cash and checks, supported by a network effect that enhances its attractiveness to both consumers and businesses [11] - The company has increased its dividend payouts by approximately 392% over the past decade, indicating a reliable income stream for investors [12]