Why Guggenheim Securities' Michael Morris is bullish on Netflix

Core Business Performance - Engagement, measured by time spent on the platform, is now the most important metric for evaluating Netflix's core business [2][3] - Guggenheim Securities anticipates improved engagement trends for Netflix in the third quarter, driven by a strong content slate [3][4][5] - Strong titles, including the latest season of Squid Game, Happy Gilmore, Wednesday, and K-pop Demon Hunters, are expected to contribute significantly to engagement [4][5] Competitive Landscape & New Revenue Streams - AI-generated content poses both opportunities and threats to Netflix, requiring the company to leverage its platform and IP [8][9] - Netflix is exploring new revenue streams and engagement opportunities, including partnerships with TF1 in France for live content and Spotify for exclusive video podcast content [10][12] - Netflix is expanding into gaming by bringing mobile games to the screen to increase engagement [13] - Netflix is investing in short-form content creators and potentially the NFL to further diversify its content offerings [13][14] Analyst Perspective - Guggenheim Securities maintains a buy rating on Netflix with a price target of $450 [1] - The analyst emphasizes that Netflix is actively innovating and not resting on its past successes [12]