Netflix Inc NFLX shares have been crushed since the start of the year, trading down by more than 70% year-to-date, but one investor says the stock may be better positioned than the market seems to think.
What To Know: Ritholtz Wealth Management's Josh Brown said inflation isn't as big of a threat to Netflix as it is to the majority of stocks.
"I think it can outperform," Brown said Thursday on CNBC's "Fast Money Halftime Report." "I actually think this is one of the few businesses in the market that the inflation scare might actually be overplayed."
Netflix fits into the category of "affordable luxuries," Brown said, adding that he would include it with companies like Starbucks Corp SBUX.
"A lot of the risk has come out of this name. I don't think everyone in America or everyone all over the world is about to cancel their Netflix subscription to pay for gas. I think that's very unrealistic," Brown said.
Related Link: Why Netflix Is Launching An Ad-Supported Streaming Plan
Expectations are low, he said, adding that a lot of the risk came out of the name when the stock fell below $200 from $700.
"In January of '21 it was selling at 47 times forward earnings. Today it's 16," Brown said.
The stock is now cheaper than the Walt Disney Co DIS, which sells at a forward earnings multiple of 22, he said.
"I like it here. I think it's gone through enough," Brown said.
NFLX Price Action: Netflix has a 52-week high of $700.98 and a 52-week low of $162.71.
The stock was trading 0.58% higher at $179.92 Thursday afternoon.
Photo: Tumisu from Pixabay.
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