Netflix (NFLX) stock rose as much as 3% Monday morning before paring gains slightly in its first trading day since the company reported earnings that topped expectations. The upside move bucked volatility within the broader market, which continued to sell-off on greater trade and economic uncertainties.
Netflix’s Q1 results, released on Thursday, solidified the company’s position as a defensive player in an industry grappling with economic uncertainty tied to President Trump’s trade war, according to Wall Street analysts.
“Netflix [is] playing offense, while stock remains defensive,” JPMorgan analyst Doug Anmuth wrote in a client note published on Sunday, echoing recent industry comments that the platform remains the “cleanest story in internet.”
As of 11:54:09 AM EDT. Market Open.
NFLX ^GSPC
The stock’s resilience is a standout in the tech landscape as rising costs, regulatory pressures, tariff whiplash, and a potential slowdown in advertising revenue have weighed on shares of many Big Tech leaders this year.
During the earnings call, Netflix co-CEO Greg Peters said the company was closely monitoring consumer sentiment amid tariff-related uncertainty but had seen no significant changes in its business performance.
“We’re paying close attention clearly to the consumer sentiment and where the broader economy is moving,” Peters said. “But based on what we are seeing by actually operating the business right now, there’s nothing really significant to note.”
On Monday, Macquarie analyst Ross Compton called out the company’s strong ad performance, writing in a client note, “Mgmt confirmed they are not seeing a slowdown or pullback in ad spend given recent macro uncertainty. Albeit, likely as a result of its ‘shiny appeal.'”
Compton, who raised his price target to $1,200 from the prior $1,150 and reiterated his Outperform rating, said the company’s “premium valuation is likely supported by investor flight to safety.”
“Moreover, its ad-tier represents a broadened (increased access at lower price) and deepened (better monetization per hour of engagement) that comfortably paves multi-year double-digit top-line growth.”
Netflix guided to revenue for the current quarter above Wall Street expectations and reiterated its full-year 2025 revenue growth forecast of $43.5 billion to $44.5 billion.
Peters noted subscriber retention remains “stable and strong,” with no noticeable uptick in cancellations or shifts toward lower-cost ad-supported plans following recent price hikes in key markets like the US and Canada. On Thursday, the company also announced it would be raising prices in France.
