5 Best COVID Stocks To Buy Now

2. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Funds: 113

In the first three months of 2020, Netflix, Inc. (NASDAQ:NFLX), an American online digital media services company, gained over 16 million subscribers due to the lockdown. The stock soared 36.01% in the past year.

As the company’s subscription growth slows down, it’s exploring new revenue streams, such as gaming.

Smart money is also taking interest in Netflix, Inc. (NASDAQ:NFLX) in Q2, as 113 hedge funds tracked by Insider Monkey reported owning stakes in the company, up from 110 in the previous quarter. The total value of these stakes is over $13.2 billion.

Netflix, Inc. (NASDAQ:NFLX) announced its Q3 results on October 19, with a GAAP EPS of $3.19, beating the consensus by $0.63. The company reported global streaming paid memberships at 213.56 million, versus the estimates of 209.1 million. Recently, Cowen lifted its price target on Netflix, Inc. (NASDAQ:NFLX) to $750, with an Outperform rating on the shares.

Ensemble Capital mentioned Netflix, Inc. (NASDAQ:NFLX) in its recently published Q3 2021 investor letter. Here is what the firm has to say:

“Netflix stock had a disappointing first half of 2021 performance, treading water while the S&P 500 rallied, after a very strong 67% return in 2020. It benefited from the global pandemic in 2020, signing on 36.6 million new subscribers vs the typical 25 million or so it typically does. Total subscribers exceeded 200 million, up 22% over the previous year. However, in the first half of 2021, new subscriber additions slowed substantially, totaling only 5.5 million due to slower new content additions impacted by production delays, a resumption of outdoor activity as people everywhere adjusted to living with COVID, and the impact of a “pull-forward effect” on subscriber growth in last year’s very strong results. The third quarter saw new content velocity start to pick up, which is usually what drives new subscribers to the service, with expectations of an even stronger content slate going into the final quarter of the year, causing the stock to increase 15% in the quarter.”