Ritholtz's Josh Brown sells Netflix ahead of earnings, but reiterates confidence in long-term trajectory

Published Tue, Jan 10 20231:31 PM EST

Netflix 's recent stock outperformance makes now a good time to take a breather on shares of the streaming giant, according to Ritholtz Wealth Management CEO Josh Brown. He told CNBC's " Halftime Report " on Tuesday that he sold shares of the streaming giant after its 40% run up over the last three months and ahead of its fourth-quarter earnings report. While the company could post solid results, he refrained from holding shares given lingering uncertainty over how investors will treat the stock. "I actually think Netflix will have a good report," he said. "I just don't feel comfortable with what the reaction might be, and I could be dead wrong. So make sure that you understand exactly what I'm saying. I would not be telling people don't own Netflix ahead of earnings. I personally don't feel like it." NFLX 1Y mountain Netflix shares plummeted 51% in 2022 Shares of Netflix slumped 51% in 2022 as investors rotated out of growth and streaming stocks faced a dwindling advertising environment and steepening competition. Earlier in the year, the company also posted its first subscriber loss in more than a decade . Despite selling shares, Brown remains confident in the company's long-term trajectory and reputation as one of the only profitable streaming services in the industry. "They are a cash producing streaming service and they have monster, monster hits, and they should be getting more credit, not less," he said. Looking ahead, Brown views more information regarding Netflix's advertising tier as the news that could "make or break" this quarter. "I think this should be the opportunity where they set the record straight because I believe the ad platform ultimately will be successful," he said. Here are some of the other stock moves from the investment committee: Hightower's Stephanie Link sold UnitedHealth, citing its recent outperformance Link bought GE Healthcare, Broadcom Brown likes JPMorgan, says stocks looks "way too cheap" Cerity Partners' Jim Lebenthal is positive on Boeing, Wynn Resorts