On Monday, May 21, Netflix confirmed that the power couple had entered into an agreement with the streaming giant to produce different types of media. The announcement was made in a tweet.
Back in March, TheStreet's executive editor, Brian Sozzi, discussed the possibilities of a partnership between the two parties. The news would be huge for Netflix bulls for a simple reason: It underscores their upbeat thesis. What thesis you ask? It's one tied to the notion that Netflix is becoming the modern day Disney (DIS - Get Report) with its aggressive push into original content.
"Coming off a quarter with across-the-board momentum in both reported fourth-quarter subscribers and first-quarter 2018 subscriber guidance ahead of Wall Street/UBS estimates, we see Netflix's investments in original/licensed content and customer acquisition/retention as widening the long-term competitive moat," said UBS analyst Eric Sheridan. "Against that backdrop, we still see a compelling risk/reward over the long-term despite strong year-to-date stock performance."
In afternoon trading, Netflix was up 1.5%.