Michelle Obama and her husband are officially partnering with Netflix Inc. (NFLX)
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%.