10 Best Entertainment Stocks to Buy According to Billionaires

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1. Netflix, Inc. (NASDAQ:NFLX)

Number of Billionaire Investors: 25

Number of Hedge Fund Holders: 144

Netflix, Inc. (NASDAQ:NFLX) is an American media and entertainment company with more than 300 million paid memberships in over 190 countries around the world. The company is best known for its streaming services. It offers a wide variety of TV shows, movies, documentaries, original content, and games across a wide variety of genres and languages. Netflix, Inc. (NASDAQ:NFLX) ranks among the best entertainment stocks to buy.

On March 17, MoffettNathanson upgraded the rating on Netflix, Inc. (NASDAQ:NFLX) from ‘Neutral’ to ‘Buy’ and raised its price target by $250 to $1,100. The firm cited the company’s ability to better monetize user engagement and unlock new revenue streams. MoffettNathanson highlighted that Netflix, Inc. (NASDAQ:NFLX) has won the streaming wars and there is room for further growth in the future. The company has a large subscriber base, which allows it to spend more on content to drive engagement and attract even more subscribers. MoffettNathanson analysts pointed to the company’s ad-supported tier as a key driver of future growth. This tier is a lower-cost option that expands Netflix, Inc.’s (NASDAQ:NFLX) total addressable market while generating dual revenue streams through subscription and advertising. MoffettNathanson expects Netflix, Inc. (NASDAQ:NFLX) to generate more than $6 billion in ad revenue by 2027 and nearly $10 billion by 2030. Additionally, MoffettNathanson expects the company’s operating margins to expand by at least 200 basis points annually, potentially reaching 40% by 2030. This combination of subscription growth, advertising revenue, and margin expansion supports the firm’s confidence in Netflix, Inc.’s (NASDAQ:NFLX) long-term profitability.

Overall, NFLX ranks first among the 10 best entertainment stocks to buy according to billionaires. While we acknowledge the potential of entertainment companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NFLX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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