Is Netflix a value stock? This analyst says ‘soon’
- Sylvia Jablonski says Netflix could soon enter the value stock territory.
- She's not interested in owning NFLX down roughly 70% for the year.
- Jablonski is constructive on mega-cap tech stocks for the long term.
Netflix Inc (NASDAQ: NFLX) is here to stay; perhaps not as a growth name, though, says Sylvia Jablonski. She’s the CEO of Defiance ETF.
Jablonski is not interested in owning Netflix stock
The streaming giant expects to lose up to 2 million paid subscribers this quarter as the world continues to pull out of the pandemic. Plus, the rising rates isn’t helping the stock either. On CNBC’s “Squawk Box”, Jablonski said:
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Netflix could start to enter the territory of value stock. It rode the wave of the work from home trade. There are stocks that double and double, and then they cut in half. NFLX is one of those that will probably look like a value stock soon.
Netflix shares are down roughly 70% for the year. Still, she prefers the mega-cap semiconductor stocks over NFLX.
Jablonski is constructive on tech for the long term
The Defiance ETF expert agreed the current macro environment is against the tech stocks, but reiterated the long-term outlook for the highest quality names remain strong. She noted:
The big cap tech names that are well positioned in terms of quality, balance sheet, and margin expansion, they’ll survive this. They typically do. They’ll see slower earnings growth in the near-term but that tends to recover in a year or two.
The tech-heavy Nasdaq Composite is now down roughly 30% versus the start of 2022 after the U.S. Federal Reserve resorted to its biggest rate hike (75 bps) since 1994 last week.