Looking at entertainment stocks? Expert suggests 'highly profitable' Netflix
Investors looking at the entertainment space for opportunities may want to consider Netflix Inc., one expert says, as the company is poised for growth.
Alicia Reese, the vice-president of equity research at Wedbush, told BNN Bloomberg’s Andrew Bell on Friday that Netflix could increase its subscriber base through password chain crackdowns and the launch of ad-supported services.
Reese, who covers media and consumer entertainment products for Wedbush, said Netflix could use the increased revenue from a larger subscriber count to support the development of “high-quality content.”
“We think that combination of password sharing crackdown along with its add tier launch is going to drive that profitability and free cash flow generation higher than ever,” she said.
“It might not be seeing the sustained subscriber growth that it used to enjoy, but Netflix is now a highly profitable mature company.”
Within the entertainment space, Reese recommends Netflix (NFLX:UN), IMAX Corporation (IMAX:UN) and Roku, Inc. (ROKU:UN).
Reese, her family, her clients and her firm do not own any of the stocks mentioned above.
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