Netflix Replaces Disney As Morgan Stanley’s Top Media Pick Ahead Of Q1 Print: Retail Mood Is Subdued

Morgan Stanley said the company is relatively resilient in a weaker global macro environment.
The Netflix logo is displayed at Netflix offices on January 24, 2024 in Los Angeles, California.
The Netflix logo is displayed at Netflix offices on January 24, 2024 in Los Angeles, California. (Photo by Mario Tama/Getty Images)
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Shanthi M·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
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Netflix, Inc.’s (NFLX) first-quarter results are a week away, and ahead of the key event, the streaming giant received endorsement from a Wall Street firm.

In a note released Wednesday, Morgan Stanley named Netflix as its top media & entertainment pick, swapping positions with Walt Disney Co. (DIS). 

Analyst Benjamin Swinburne reiterated an ‘Overweight’ rating and $1,150 price target for Netflix stock, implying about 22% upside potential from Wednesday’s close 

The analyst based his positive opinion to his view that the streaming giant is relatively resilient in a weaker global macro environment.  

President Donald Trump’s sweeping tariffs announced last week raised the specter of a recession although he has relented since then and announced a 90-day pause in implementing the levies for most nations with the notable exception being China.

Swinburne adjusted his 2025 advertising revenue growth estimate for Netflix to 15.4% excluding currency impacts, leaving his reported growth forecast unchanged at 13.5%. 

He targets advertising revenue of $1.3 billion in 2025, up from $700 million last year, assuming growth in ad-supported users and no growth in advertising revenue per member (ad RAM).

Delving into Netflix’s Engagement Report for the second half of 2024, the analyst said roughly 30% of hours streamed were for non-English language content, original and exclusive programming dominated most popular programming. He also noted deep engagement in Netflix library.

The analyst expects a durable growth model for Netflix due to uniquely global programming and production capabilities, a vertically integrated business model, and an appreciating content asset.

Retail traders, however, remained cautious on Netflix. An ongoing Stocktwits poll found that only 12% of the respondents counted the company as the communication services stock they would buy.

Users on the platform were ‘neutral’ (53/100) toward Netflix stock by late Wednesday, although it was better than the ‘bearish’ mood from a day ago. The message volume on the stream stayed ‘high.’

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NFLX sentiment and message volume as of 10:02 p.m. ET, April 9 | source: Stocktwits

A bullish watcher based his optimism on expectations the company will report a blowout earnings next week.

However, another user called the Netflix stock a “bear trap.”

Netflix ended Wednesday’s session up 8.62% at $945.47, with the stock now up 6% this year.

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