Well-known investor Steve Weiss noted on CNBC on Friday that he had bought more shares of Netflix, Inc. (NFLX) stock. Weiss, who is bearish on the longer-term outlook of the U.S. economy, expects NFLX to “do well in a recession.”
Weiss, the Chief Investment Officer and Managing Partner of Short Hills Capital Partners, reported that Netflix, Inc. (NFLX) is his “largest position by a wide margin.”
Why Weiss Expects NFLX to Perform Well
NFLX will face less competition during a recession because a number of the other streaming services that are in business now will fail during the downturn, the investor predicted.
Additionally, Netflix, Inc. (NFLX) has “the most content” in the space, and the firm “can raise prices every six months” without negatively impacting its demand, according to Weiss.
Moreover, the company can take multiple steps to improve its offerings, the investor said, noting that it has begun to stream sporting events.
The Recent Price Action of Netflix, Inc. (NFLX) Stock
In the last month, the shares have advanced 19%, while they have gained 8% in the last three months.
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This article is originally published at Insider Monkey.
