Stock

Josh Brown defends buying Netflix at a time when it’s a hated stock

Don’t own Netflix Inc (NASDAQ: NFLX). That seems to be the popular opinion ever since the streaming giant said it could lose up to 2 million subscribers this quarter. Still, Josh Brown is going against the current.

Brown took a small position in Netflix Inc

The CEO of Ritholtz Wealth Management agrees NFLX isn’t out of the woods yet, but sees it down 70% from its high as a reasonable point to hop onto the stock. Explaining why he took a small position in Netflix, he said on CNBC’s “Halftime Report”:

I do think the stock has been very much de-risked. In January, it was trading double the earnings multiple as Disney. Now it’s on par. I’m not saying Netflix should have a premium to Disney, but there are a lot of reasons why it would and why it has historically.

According to Brown, at 20 times earnings, Netflix is a sensible buy, particularly for the long-term investors who can wait for things to get better for the California-based company.

Brown has confidence in Netflix management

The management at Netflix has a history of beating the odds, which, as per Josh Brown, is reason enough to believe that this time is not going to be any different. He added:

Moving to streaming, spending big on developing their own content, increasing price, going international; all these things that were initially panned by most Wall Street analysts, almost every time Wall Street was dead wrong and Netflix did the right thing.

Brown recalled that Disney – the next big shot in streaming, is not even half the size of Netflix so far. He agreed that it’s a tough business and things are bad, but reiterated that Netflix will eventually get it under control.

The post Josh Brown defends buying Netflix at a time when it’s a hated stock appeared first on Invezz.

Disclaimer: MonopolyWinnersUpdates.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 MonopolyWinnersUpdates.com. All Rights Reserved.

To Top