Netflix (NASDAQ:NFLX) last week joined the growing number of American tech giants that have suspended operations in Russia due to its invasion of Ukraine. And while the move may have some impact on the streaming TV giant's stock, it is not likely to be a major blow to Netflix's (NFLX) overall business.
That's the opinion of Benchmark analyst Matthew Harrigan, who said in a research note Monday that there is "a clear crisis fallout" that could affect Netflix's (NFLX) stock valuation and international growth numbers, but its Russian subscriber base is paltry compared to other countries and regions.
"The isolated financial effect is minimal," Harrigan said, noting that "less than an estimated 1 million of [Netflix's] 222 million [subscribers] reside in the Russian Federation."
Harrigan also said he remains "bullish" on the global direct-to-consumer streaming TV market. However, while Harrigan acknowledged Netflix's (NFLX) strong position in the streaming TV market, he also said the company's road ahead may get rough as competition grows.
"[We] view Netflix (NFLX) as first among equals rather than a dominant player," Harrigan said. Additionally, Harrigan said Netflix (NFLX) is facing "competition from other streamers [that] is now dampening member acquisition alongside the lingering Covid shadow," even as member retention overall remains strong.
Over the weekend, Netflix's (NFLX) Ozark series starring Jason Bateman and Laura Linney topped the latest Nielsen (NYSE:NLSN) streaming TV ratings.