Stock Market Today: S&P 500 and Nasdaq Futures on the Rise Ahead of Fed Rate Announcement

Stock Market Today: S&P 500 and Nasdaq Futures on the Rise Ahead of Fed Rate Announcement

With investors obsessed with Nvidia (NVDA) and the Magnificent 7they may have forgotten their old favorite – FAANG (a recall on FAANG) Netflix component (NFLX).

Not everyone has forgotten the streaming beast: the stock is up 23% since the publication of its fourth quarter results!

I liked some calls from JP Morgan analyst Doug Anmuth in a new note this morning.

The first was his reasoning for remaining bullish on Netflix stock.

“We remain positive on Netflix shares and our bullish thesis remains: 1) accelerating revenue growth in 2024, driven by healthy organic growth, paid sharing and price increases; 2) steady operating margin expansion balanced by growth investments in content, advertising and games. ; 3) increasing free cash flow over multiple years through improved earnings and cash discipline; 4) Netflix’s strong leadership position in streaming; and 5) the potential for become a global television as Netflix expands its base by 260 million members across more than 500 million CTV households worldwide, excluding Russia and China. We believe that Netflix’s large-scale engagement, high engagement (around 2 hours/day), and diverse content will continue to push the platform towards global television over time, i.e. choice by default for where users will consume long-form video content.

And then his brief analysis of the upcoming Mike Tyson vs. Jake Paul fight on Netflix:

“Netflix continues to expand its sports content, primarily targeting sports entertainment and shoulder programming. Key examples include WWE Raw, Formula 1: Drive to Survive, Full Swing, Break Point, Quarterback, Tour de France: Unchained, The Netflix Slam, etc. Most importantly, Netflix is ​​partnering with Most Valuable Promotions (MVP) to stream its third live sporting event, a heavyweight boxing mega-event headlined by Jake Paul and Mike Tyson on the 20th. July. We believe the fight could be the most-watched boxing match ever, with ever-increasing ease of access and NFLX’s large global subscriber base, and it is expected to attract significant advertising dollars while driving a period slower seasonally in mid-summer. While Netflix’s current focus is on sports entertainment and shoulder content, we wouldn’t rule out a bigger push into live sports over time.

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