Netflix earnings on deck. Morgan Stanley's Ben Swinburne makes the bullish case for the stock

Financial Performance - Netflix's Q2 revenue increased by 13% last quarter [1] - Morgan Stanley upped Netflix's price target to $450, approximately 12% upside [1] Generative AI Impact - Generative AI can substantially reduce content production costs for animated films and scripted television series [2] - Generative AI can enhance personalization and curation, improving user engagement and pricing power [3][4] - Morgan Stanley's bull case projects Netflix's margins reaching 50% over time due to Gen AI [3] Market Opportunity & Competition - Netflix has over 300 million members, while there are over 700 million connected households in its operating markets, indicating further growth potential [6] - Netflix distributed a linear network in France called TF1 to grow engagement and reach [7] - YouTube and Netflix are increasingly defining television for the global audience [12] Strategic Evolution - Netflix's product is evolving to include other kinds of programming, potentially including sports, to be perceived as TV [8] - Consumers turn to Netflix to decide what to watch, unlike other streaming services except for YouTube [10][11]