Netflix(NFLX) ZACKS·2025-04-15 20:35Core Viewpoint - Despite the volatility in Wall Street and significant drawdowns among most "Magnificent 7" stocks in 2025, Netflix (NFLX) has shown resilience ahead of its Q1 earnings release, driven by several key factors [1][8]. Group 1: Tariff Immunity - Netflix is largely unaffected by the current trade policy uncertainties, as digital services are not a priority for the Trump Administration and are not subject to tariffs under WTO policy [2][4]. - In contrast, other "Magnificent 7" stocks like Amazon, Microsoft, Apple, Nvidia, and Tesla face significant risks due to their reliance on overseas production and parts [1][2]. Group 2: Growth Performance - Netflix recorded a remarkable 102% year-over-year earnings growth last quarter, making it the fastest-growing stock among the "Magnificent 7" [3][8]. - The company has effectively navigated intense competition from services like Amazon Prime, YouTube TV, and Disney Plus, showcasing strong management capabilities [3][8]. Group 3: Strategic Initiatives - The crackdown on password sharing in mid-2023 led to the highest user acquisition days in Netflix's history, indicating successful strategic adjustments [4][8]. - Netflix has evolved into a major content powerhouse, investing heavily in original programming and attracting renowned Hollywood talent, which has broadened its viewership [4][8]. Group 4: Financial Metrics - Netflix has a history of bullish earnings surprises, having beaten Zacks Consensus Analyst Estimates for four consecutive quarters, which bodes well for its upcoming earnings report [6][8]. - The stock's low valuation and strong earnings surprise history contribute positively to its investment appeal [3][8].