12 Best WallStreetBets Stocks To Buy According to Hedge Funds

4. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 144

Pivotal Research upped the price target on Netflix, Inc. (NASDAQ:NFLX)’s stock from $1,250 to $1,350, while maintaining a “Buy” rating. The updated target comes after the streaming giant reported its quarterly financial report, which exceeded expectations. The firm’s analyst noted Netflix, Inc. (NASDAQ:NFLX)’s strong value proposition, providing high entertainment value at a competitive price. The company has been demonstrating healthy potential for continued growth. This value is expected to be bolstered by Netflix, Inc. (NASDAQ:NFLX)’s ad-supported offerings, which can contribute to continued subscriber growth as well as ARPU expansion.

Overall, the combination of expected price increases and the scaling up of advertising is being viewed as a strong growth enabler for Netflix, Inc. (NASDAQ:NFLX). In Q1 2025, the company’s revenue and operating income saw an increase of 13% and 27% YoY, respectively. Both were ahead of their guidance because of slightly higher subscription and ad revenue, and the timing of expenses. Netflix, Inc. (NASDAQ:NFLX)’s free cash flow totaled $2.7 billion as compared to $2.1 billion in Q1 2024. Harding Loevner, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:

“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. Netflix, Inc. (NASDAQ:NFLX) was our top relative contributor; the company provided a favorable outlook for subscriber growth in 2025 and made progress in two key areas, live TV and advertising. The streaming service broadcast its first sporting events, including two National Football League games on Christmas, and said that the ad-supported plan it launched two years ago amassed 70 million subscribers, more than investors expected.”