Having fallen about 15% to kick off the year, Netflix Inc (NASDAQ:NFLX) is on pace to record its worst monthly performance since October 2018.
BofA Securities analyst Nat Schindler said he remains bullish on the streaming giant.
"I do believe in the story at this point and I believe that subscribers follow content," Schindler said Tuesday on CNBC's "The Exchange."
Netflix rolled out a "very big" content lineup in the fourth quarter and is expected to accelerate its content rollout in the first and second quarter of 2022, according to the BofA Securities analyst.
"That should drive more people to keep watching Netflix," Schindler said.
He told CNBC that he has no reason to believe that Netflix has not returned to pre-pandemic subscriber growth numbers. The COVID-19 pandemic caused subscriber growth to surge in 2020, which led to tougher comparables, but the analyst said he expects that to end moving forward.
What About Streaming Competitors? "It seems strange, but I don't really believe in competition here," Schindler said.
Viewers aren't choosing what they want to watch based on the channel, he said. It's about the content and the individual shows.
"It doesn't really matter what is on The Walt Disney Co (NYSE:DIS), what is on HBO Max," Schindler said. "Even if it did ... the amount of content that is being created by Netflix versus the others — it's not even close. They're vastly farther ahead."
He noted that although the competition has some "great shows," Netflix offers much more for the price, despite the company's announcement Friday that it's raising monthly subscription prices in the U.S. and Canada.
Related Link: Netflix Is Raising Subscription Prices: Here's What You Need To Know
Schindler told CNBC that he maintains a Buy rating on Netflix with a price target of $750.
Netflix is scheduled to announce its quarterly financial results after the market closes on Thursday.
NFLX Price Action: Netflix has traded as low as $478.54 and as high as $700.98 over a 52-week period.
The stock was down 2.83% at $510.80 Tuesday afternoon.
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