Oppenheimer Remains Optimistic on Netflix (NFLX) Given Strong Competitive Positioning

On May 19, Oppenheimer analyst Jason Helfstein published a bullish note on Netflix Inc. (NASDAQ:NFLX), which directly contrasts the fresh rating downgrade by JP Morgan (to Neutral from Overweight) on the same day. As he continues to believe in the long-term fundamental story of Netflix, Jason outlined several catalysts to support his optimistic opinion. The first key driver was the much-talked-about subscriber growth in its ad-supported tier, which recently reported to have reached over 94 million global monthly active users (vs. 70 million in November). The second reason was the strong content slate during the rest of the year, including highly anticipated series finales (such as Squid Game and Stranger Things) and new blockbuster films, which the management believes would help attract more subscribers.

The analyst also highlighted that the recent progress in enhancing its advertising platform and ad-tech software will help it maintain its competitive position. Last but not least, Netflix is expected to continue churning out superior content across international markets, which should help it retain, gain, and diversify its user base. Therefore, the analyst maintained his Buy recommendation.

Despite the mixed opinions, Netflix remains one of the best-performing stocks this year with a 33% share price increase YTD, outperforming the broader market substantially.

As a global streaming entertainment service, Netflix offers a diverse array of movies, TV shows, games, and more, with unlimited viewing on internet-connected devices. Over the years, it has revolutionized digital streaming and disrupted traditional TV and movie consumption.

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Disclosure: None.