5 Ad-Tech Stocks to Buy as Industry Goes Through Upheaval

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 95

Netflix, Inc. (NASDAQ:NFLX) is one of the best ad-tech stocks to buy as the industry faces upheavals. The company is in the process of developing an ad-tiered plan, which will be less expensive than its current ones, and will compete with industry peers. On September 7, Macquarie analyst Tim Nollen upgraded Netflix, Inc. (NASDAQ:NFLX) to Neutral from Underperform with a price target of $230, up from $170. The analyst is now more confident in Netflix, Inc. (NASDAQ:NFLX)’s long-term upside potential. He expects that Netflix, Inc. (NASDAQ:NFLX) could generate up to $3.6 billion in U.S. and Canada sales by 2025 and $8.5 billion globally with ads, as well as $2 billion in total incremental revenue.

According to Insider Monkey’s data, 95 hedge funds were long Netflix, Inc. (NASDAQ:NFLX) at the end of Q2 2022, compared to 109 funds in the last quarter. Ken Fisher’s Fisher Asset Management featured as the biggest position holder in the company, with 6.5 million shares worth $1.14 billion.  

Here is what L1 Capital International specifically said about Netflix, Inc. (NASDAQ:NFLX) in its Q2 2022 investor letter:

“While it seems an eternity ago, in April Netflix, Inc. (NASDAQ:NFLX) reported Q1 2022 results and gave forward guidance which flashed many red flags. Not only were subscription numbers (and forward guidance) well below expectations, but management also gave new disclosure on the massive extent of password sharing which raises concerns that Netflix is much more mature than we had previously considered, constraining future growth. Management also haphazardly announced it will introduce an advertising-supported subscription tier, albeit currently lacking the necessary capabilities to do so. Despite continuing to produce world-leading content, we have lost confidence in management’s ability to respond to increased competition and a more challenging operating environment. We sold our entire investment in Netflix immediately post Q1 2022 results. Currently we do not consider Netflix to meet our stringent quality criteria to be considered as a potential investment in the Fund.”

You can also take a look at Best IPO Stocks To Buy and 12 Best Medical Device Stocks To Buy Now. 

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