Citi sees 20% earnings hit to Netflix under ‘worst-case’ tariffs

Citi keeps a Neutral rating on Netflix (NFLX) after President Trump suggested a 100% tariff on movies and TV shows produced outside the U.S. Under a “worst-case scenario,” this could reduce Netflix’s earnings per share by 20%, or $6 per share, the analyst tells investors in a research note. However, Citi believes Netflix has a wide range of options that will likely limit financial risks, including shifting production to the U.S., restricting U.S. access to content produced outside the U.S., and raising prices in line with higher production costs. The firm thinks a 5% selloff in the shares is “reasonable” considering Netflix had been viewed by investors as a “safe haven” with respect to tariff risks. The shares in late morning trading are down 2% to $1,135.50.