With news of Trump’s tariffs plan changing by the day and sometimes even by the hour, many investors are unsure where to place their bets as they look forward this year.
While many look to Magnificent 7 stocks as reliable anchors, there’s always the chance those holdings can waver.
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Tesla is a perfect example. Elon Musk’s famed EV company has been the darling of the automotive world for some time, and betting on his visionary outlook has been a winning strategy for many.
But the stock has taken a beating since Musk went to work for the Department of Government Efficiency (DOGE) this year, and while the billionaire has just officially ended his time in that role, Tesla has taken a beating in the interim, making many unsure whether the stock is still a good bet for the future.
In the meantime, there is one stock that’s been steadily growing since early 2022, and if you haven’t considered it, a new note from Bank of America may make you think you should.
Related: Bank of America CFO has surprising response to recession concerns
‘Something for everyone, especially investors’
In BofA’s May 30 note, it had glowing praise for Netflix (NFLX) , calling the streaming company “a top performer.”
BofA Research Analyst Jessica Reif Ehrlich attributes this to a variety of factors, including “sustained earnings momentum, positive subscriber trends (last reported subs in January, which showed massive ~19mn net adds in 4Q), and a defensive rotation related to tariffs (although less pronounced over the last month).”Â
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“We continue to view Netflix as well positioned, given the company’s unmatched scale in streaming, further runway for subscriber growth, significant opportunities in advertising and sports/live, and continued earnings and FCF growth,” the note continues.
Related: Netflix is making an unexpected move no one saw coming
Ehrlich also focused on Netflix’s current and upcoming content slate, which she describes as a healthy balance between original content, ongoing franchises, finales, and live/sports content.
“In our view, the return of Netflix’s three most watched series — ‘Squid Game’ (6/27), ‘Wednesday’ (8/6) and ‘Stranger Things (2h25)’ — alongside new releases such as Guillermo del Toro’s ‘Frankenstein,’ Adam Sandler’s ‘Happy Gilmore 2’ and Tina Fey’s ‘The Four Seasons’ supports healthy retention and subscriber growth.”
“Finally, key live events such as boxing from Madison Square Garden (produced by Most Valuable Promotions/Jake Paul), and strong NFL Christmas Day matchups will boost Netflix’s ad-supported efforts,” the note reads.
Bank of America raises its PO for Netflix
Ehrlich wrapped up the note by announcing that BofA would keep the Buy rating it already recommends for the stock, but make a change to the price objective change.
“We reiterate our Buy rating and raise the PO to $1,490 (from $1,175 prev.) based on ~40x (equal to Netflix’s current CY25E trading multiple; from ~32x prev.) CY26E EBITDA,” she said.
And for those who’ve already invested in Netflix and are watching to see it pan out, BofA has promising words.
“Supported by its world-class brand, leading global subscriber scale, position as an innovator and increased visibility in growth drivers, we believe that Netflix will continue to outperform,” the note reads.
Related: Netflix is making a change longtime users won’t like
