12 Best FAANG+ Stocks to Invest in Right Now

10. Netflix Inc. (NASDAQ:NFLX)

Number of hedge funds: 121

The advent of Netflix Inc. (NASDAQ:NFLX) revolutionized digital streaming and disrupted traditional TV and movie consumption. As a global streaming entertainment service, Netflix offers a diverse array of movies, TV shows, games, and more, with unlimited viewing on internet-connected devices. With over 300 million paid memberships in more than 190 countries, Netflix Inc. (NASDAQ:NFLX) has solidified its position as a dominant player in the entertainment industry, continually innovating its content offerings and user experience. Its market cap currently stands at $418 billion, up from $148 billion five years ago.

Netflix Inc. (NASDAQ:NFLX) has been intensifying efforts to expand its content library, including original content, and enhance user engagement through original programming and strategic partnerships. The company has invested substantially in creating exclusive content, significantly contributing to subscriber growth. Moreover, Netflix Inc. (NASDAQ:NFLX) is exploring new revenue streams, such as ad-supported subscription tiers and gaming, aiming to attract a broader audience and increase overall revenue. According to company management, there are over 750 million broadband households (excluding China and Russia) and more than $650 billion of entertainment revenue globally, of which the company captured only about 6% in 2024, leaving a vast addressable opportunity.

In January 2025, Netflix Inc. (NASDAQ:NFLX) reported strong Q4 2024 earnings that exceeded analyst expectations. For the quarter, the company added 18.9 million paid streaming customers, more than double what analysts had projected. Management also raised its revenue growth guidance to 12%-14% year-on-year and increased its operating margin guidance to 29% from the previous 28%.

Analysts’ views on Netflix Inc. (NASDAQ:NFLX) have broadly turned positive following these results. The stock was upgraded by a Bernstein analyst to Outperform from Market Perform, with a price target raised from $975 to $1,200. The analyst believes international growth could enable the company to achieve double-digit subscriber growth in 2025 and highlighted that numerous markets remain underpenetrated. Netflix’s growth initiatives, such as the ad-tier, could support substantial user growth. Conversely, Phillip Securities raised the price target to $870 from $695 but downgraded the stock to Reduce from Neutral, citing valuation concerns.