5 Best Adtech Stocks To Buy According To Hedge Funds

2. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 115

Netflix, Inc. (NASDAQ:NFLX) provides entertainment services and the company decided in 2022 to offer an ad-supported tier and allow advertisers the chance to run commercials alongside shows. It is one of the premier adtech stocks to buy according to hedge funds. The new ad-supported plan, which costs $6.99 per month, accounted for 9% of new Netflix sign-ups in the U.S. during November 2022. 

On December 19, Morgan Stanley analyst Benjamin Swinburne raised the price target on Netflix, Inc. (NASDAQ:NFLX) to $275 from $250 and kept an Equal Weight rating on the shares. The analyst said the launch and potential of the ad-tier and paid sharing have allowed Netflix, Inc. (NASDAQ:NFLX) shares to “nicely outperform since July” as consensus net adds expectations have lifted.

According to Insider Monkey’s data, Netflix, Inc. (NASDAQ:NFLX) was part of 115 hedge fund portfolios at the end of Q3 2022, up from 95 in the earlier quarter. Ken Fisher’s Fisher Asset Management is a prominent stakeholder of the company, with 6.7 million shares worth $1.6 billion. 

Harding Loevner made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2022 investor letter:

“Netflix, Inc. (NASDAQ:NFLX) mustered a modest recovery as the market Allocation Effect: 0.3 mulled the potential of its new lower-priced ad-supported subscription model to drive revenue growth and reduce its dependency on continued heavy investment in content to attract and retain viewers.”