Netflix: A Safe Haven During Market Turmoil
Netflix has been standing strong amidst the recent market chaos, according to Scott Nations of Nations Indexes. He recently shared his insights on the popular streaming platform, along with a few other key players in the market.
Netflix’s stock saw a positive turn on Tuesday, thanks to Morgan Stanley’s reaffirmed overweight rating and new top pick status in media and entertainment. With a price target of $1,150, there’s a potential 33% upside from Monday’s closing price. Nations also expressed bullish sentiments, indicating that he would consider buying at the current price. He highlighted Netflix’s impressive track record, as the stock only pulled back 2% year-to-date compared to the S&P 500’s 15% decline over the same period. Nations labeled Netflix as a “safe haven” investment option, noting upcoming growth in earnings and a potential influx of subscribers to the advertising-supported tier due to economic uncertainties.
Wells Fargo, on the other hand, saw a slight decline on Tuesday after initially spiking up 5.6%. The jump followed an upgrade to overweight from equal weight at Piper Sandler, with an optimistic price target of $77 per share indicating a 24% potential upside. Nations shared a similarly positive outlook on the stock, commending the company’s strategic changes over the years to move beyond past scandals and increase profitability through fee-based products.
Carvana, a used car e-commerce platform, experienced a 5% surge in stock value after announcing a new auction and reconditioning site in Phoenix. Despite past earnings surprises, Nations expressed caution about the stock’s future performance. He noted a significant increase in earnings expectations over the last 60 days, making it challenging for the company to meet those targets. With a high PE ratio, Nations suggested that Carvana appears costly compared to other players in the market.
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