12 Best Quality Stocks to Invest in Now

9. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 144

Netflix, Inc. (NASDAQ:NFLX) offers entertainment services. Bernstein analysts, including Laurent Yoon, maintained an “Outperform” rating on the company’s stock with a price objective of $1,200.00. In a bid to continue its growth trajectory, the company has been seeking ways to expand its total addressable market (TAM) and improve user engagement. Netflix, Inc. (NASDAQ:NFLX)’s recent ventures into live events and sports are being considered as part of the growth strategy. Elsewhere, Rosenblatt Securities analyst upped the company’s stock from “Neutral” to “Buy,” placing a price target of $1,494.

As per the analyst, Netflix, Inc. (NASDAQ:NFLX)’s pivot to sports content has been benefiting the streaming giant and continues to put pressure on traditional TV rivals. The company’s ad-supported tier offers a strong opportunity for revenue growth and market expansion. By providing a lower-priced option, Netflix, Inc. (NASDAQ:NFLX) is well-placed to attract price-sensitive consumers who were earlier hesitant to subscribe. Also, the ad-supported tier can help the company maintain its competitive edge by offering a more affordable option in markets.

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its Q4 2024 investor letter. Here is what the fund said:

“Netflix, Inc. (NASDAQ:NFLX): NFLX was a top contributor in the fourth quarter powered by a 3Q earnings report that included stronger-than-expected revenue and operating income, solid subscriber additions, and positive forward commentary. Anti-password sharing and ad tier initiatives continue to drive subscriber growth while improving revenue per user trends, from recent price increases, drive margin expansion. The company was optimistic about future revenue growth, margin expansion, free cash flow generation and future return of capital programs.

The recent re-acceleration of subscriber growth, plus price increases on premium memberships and a stabilization of content investments, should position the company for low double digit annual revenue growth over the next few years while driving operating margin to more than 25%. We also believe that the stabilization of content spend should allow the company to continue to scale its free cash flow.”