Netflix is one of the few bright spots in media amid the economic slowdown, JPMorgan said. Analyst Doug Anmuth said unlike most media companies, they are very sensitive to a weak consumer environment and increased capital expenditures, making them vulnerable in the event of a recession. , Netflix is relatively less affected by these factors. “While NFLX is certainly not immune on both a macro and consumer note, we believe the service represents compelling value even as prices continue to rise,” Ames wrote in a note on Tuesday. In terms of capital expenditures, the streaming giant is expected to spend about $17 billion this year, but unlike other big tech companies, much of the investment has nothing to do with spending on artificial intelligence, he said. Analysts have an overweight rating on the stock. His price target is $750, which represents about 18.5% upside potential from Monday’s closing price. The stock is up nearly 32% so far this year. The stock has outperformed the market over the past few weeks. After the second-quarter earnings report was announced on July 18, Netflix’s stock price fell only 2%, while the S&P 500 index is currently down 4% during the same period. In the second quarter, Netflix reported a 34% year-over-year increase in ad-supported memberships, with the total number of members exceeding analysts’ forecasts. Anmuth added, “We generally view subscription services like NFLX (and SPOT) as more resilient during periods of macro stress.” One potential weakness for Netflix could be weakness in the digital advertising market. Still, the company’s advertising revenue remains small. Anmuth said: “We like NFLX’s positioning as it targets more than 500 million global (connected TV) households, and we believe the company has more control over its destiny than most companies in our coverage.” As for Spotify , the stock has had a strong year, with shares up 80% year-to-date. —CNBC’s Michael Bloom contributed to this report.
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