Netflix Stock (NASDAQ:NFLX) Slips as Ted Sarandos Talks Politics

Politics in entertainment have not always been a good combination. Streaming giant Netflix NFLX -0.88% ▼ has seen that much for itself of late. Remember the furor around Cuties? But co-CEO Ted Sarandos recently talked to Politico about politics and the streaming service, and what he had to say did not do much for shareholders. That much was evidenced by the modest drop in share prices seen in the closing minutes of Tuesday’s trading.

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Basically, Sarandos noted, he had a simple message for Brussels about streaming rules in the European Union: do not make things too complex. Sarandos was reportedly concerned about a “…patchwork of national mandates” emerging as the wider European body turns its attention to the Audiovisual Media Services Directive.

Sarandos in particular called out Europe for underestimating Alphabet’s GOOGL +1.75% ▲ YouTube, which Sarandos said was treated more like “…a bunch of cat videos” than like a serious streaming rival. Sarandos noted, “It doesn’t make it a very healthy business environment if you don’t know if the rules are going to change midway through production.”

A Comeback Tour

Netflix will also play host to a major event for K-Pop fans: the first performance of BTS in three years. BTS has been on hiatus since 2023, reports note, and the group of seven South Koreans will be staging a performance in Gwanghwamun Square. The show will feature tracks from their fifth album, ARIRANG, which itself goes on sale the day before the show.

Plus, Netflix will keep the momentum going by premiering a documentary on BTS a week after the show. BTS: The Return will offer up footage on the making of ARIRANG, which should help calm sentiment after fans see the first big show in years and probably the last for some time.

Is Netflix Stock a Good Buy Right Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on NFLX stock based on 30 Buys and 10 Holds assigned in the past three months, as indicated by the graphic below. After a 2.37% rally in its share price over the past year, the average NFLX price target of $114.50 per share implies 21.19% upside potential.

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