Netflix stocks are almost unscathed by Trump’s tariffs. Some people think it’s a version of Silicon Valley’s Johnson & Johnson

• Consumer staple stocks tend to work well As customers continue to buy essentials, they fall into a recession. meanwhile Netflix You can see subscribers falling during a recession. Some bulls suggest that streaming services could be one of the last things people willing to give up when their wallets get lighter.

President Donald Trump’s chaotic tariff development is Stock markethowever, Netflix investors’ all-in may not be aware. The Benchmark S&P 500 Index exceeds 10% this year, Netflix shares Even after stocks reduced profits when a wider market entered, it rose more than 8% in that range Free fall Early this month.

One obvious reason the stock worked: Customs Products will not directly affect streaming services. Additionally, subscriptions can be a hit during a recession, but the company’s advantage in the infamously competitive industry has some analysts considering whether Netflix is ​​the Silicon Valley version of Johnson & Johnson. Consumer standard When the customer’s wallet gets much lighter, it works well.

Or as Edward Jones Senior analyst Dave Heger put it down, Netflix may occupy space cable television held before its appearance Cord cutting. Consumers may cut back on going to restaurants, cinemas or concerts, but when times get tough, they say they tend to keep watching TV.

“I think Netflix may have that resilience in that recession,” he said.

Just as the recession fears mount on Wall Street, Netflix management is still setting Ambitious long-term goals. The company aims to reach $1 trillion by 2030, more than double its market capitalization. Wall Street Journal It has been reported Join the club currently occupied by only eight companies worldwide on Monday. To get there, Netflix believes it will double its revenue and triple its operating profit in just under five years.

These are lofty goals, Heger said. Still, shareholders are rewarded with a wealth of reward for bets on the company, with the value of their holdings, which has increased by about 30% year-on-year over the past decade, increasing compared to S&P’s approximately 10% per year for that period.

“When you look at how many disruptors they are in the industry, you can’t underestimate them,” Heger said of Netflix Management.

Tariff uncertainty achieved its objectives in the revenue season. Many companies Pull their forward guidance or downgrade them significantly. Even United Airlines It was provided There are two different sets of benchmarks for the rest of the year, depending on whether the US economy remains weak and stable or in a complete recession.

But if Netflix releases revenue after the market closes on Thursday and can affirm or raise guidance when it releases profits, it can itself distinguish it from companies struggling to deal with not only tariffs but relatively high interest rates. He compared it to Johnson & Johnson.

“This is an important moment when the management team shows their strength,” he said.

Can a trade war help Netflix?

Heger said he wouldn’t necessarily be surprised if management decided to put a careful tone, but said tariffs would not be an uproaring issue for companies in many other industries. Like online ads Amazon and MetaNetflix’s revenue streams seem to be unaffected so far.

One thing that could change is when a country raises taxes, especially in the European Union. Digital Services Heger said to retaliate against US tariffs. Although America is a net exporter in this category, taxation has been a target for Trump’s rage since his first term.

Netflix could indirectly benefit from obvious capital flights from the US. The dollar weakenssaid Hegar. The dollar strength before the tariffs is under pressure on revenues from overseas, where the company finds most of its new subscribers.

Meanwhile, Netflix’s strength in foreign language programming is the main reason the company has “pretty good recipes” to keep increasing revenues as the economy slows, Mulberry said. That was what happened during the first economic shock at the start of the Covid-19 pandemic, he added, but people were clearly stuck at home.

“Do consumers still pay a subscription and watch a bold show?” Mulberry said. “I think that’s going to be the most important question we don’t have an answer.”

The Bulls believe that Netflix is ​​one of the last things consumers want to give.

This story was originally introduced Fortune.com