Tariff Turmoil: 2 Spectacular Stocks to Confidently Buy With $1,500 During the Nasdaq Correction

Anthony Di Pizio, The Motley Fool

Mon, Apr 7, 2025, 2:03 AM 7 min read

On April 2, President Trump announced sweeping tariffs connected America's trading partners, which volition summation the outgo of carnal goods coming into the country. The president's extremity is to promote much companies to manufacture products domestically to thrust occupation creation, but determination is apt to beryllium important economical symptom successful the abbreviated term, particularly arsenic different countries are expected to respond with tariffs of their own.

Netflix (NASDAQ: NFLX) and Spotify (NYSE: SPOT) run 2 of the world's largest streaming platforms, and they could beryllium large stocks to bargain successful the look of a imaginable commercialized war, for a fewer reasons:

• Digital goods aren't impacted by tariffs (at slightest not yet, but this mightiness beryllium a aboriginal risk).

• Both companies person highly diversified gross streams due to the fact that they run successful much than 180 countries worldwide.

• Both complaint a comparatively tiny monthly interest to hundreds of millions of customers, truthful tariffs astir apt wouldn't rise prices capable to trigger wide cancellations.

Both Netflix banal and Spotify banal are down 13% from their all-time highs amid the volatility successful the broader market, but they are really outperforming the Nasdaq-100 exertion index, which has plummeted by astir 17% from its high. Since it appears apt that commercialized tensions volition persist for the foreseeable future, here's wherefore investors with a spare $1,500 (money they don't request for contiguous expenses) mightiness privation to bargain 1 stock of Netflix and 1 stock of Spotify.

Netflix is the world's largest streaming level for movies and TV shows, with 301.6 cardinal subscribers arsenic of the extremity of 2024. It's acold up of Amazon Prime with an estimated 200 cardinal subscribers (although Amazon doesn't abstracted Prime subscribers from Prime Video users), and Disney's Disney+, with 124.6 cardinal subscribers.

Netflix offers 3 subscription tiers: Standard with ads ($7.99 per month), Standard without ads ($17.99 per month), and Premium ($24.99 per month). The advertisement tier, which was introduced successful November 2022, has been a monolithic occurrence due to the fact that of its inexpensive terms point. In the 4th fourth of 2024, it accounted for 55% of each of Netflix's signups successful countries wherever it's available. The fig of subscribers utilizing this program besides soared by astir 30% compared to the 3rd 4th conscionable 3 months earlier.

Ad-tier subscribers besides go much invaluable for Netflix implicit time, due to the fact that arsenic the rank basal grows, the institution tin merchantability much advertizing slots to businesses. Plus, the much clip each subscriber spends connected the level each day, the much ads they spot and the much gross Netflix earns. The institution said its advertizing gross doubled successful 2024, and absorption expects it to treble again successful 2025.