5 Best Entertainment Stocks to Buy for 2024

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 89

Netflix, Inc. (NASDAQ: NFLX) is a leading provider of streaming entertainment services based in Los Gatos, California. It boasts more than 260 million paid memberships across more than 190 countries and offers a film and television series library through distribution deals as well as its own productions.

On January 23, Netflix, Inc. (NASDAQ:NFLX) released its financial results for Q4 2023. The company posted a revenue of $8.8 billion, which represents nearly 12% y-o-y growth, and a net income of $938 million. It also added 13.1 million new paid members to its platform during the quarter, which represents nearly 13% growth.

Netflix, Inc. (NASDAQ:NFLX) is also making efforts to return capital to its shareholders through share repurchases. During the quarter, it repurchased nearly $2.5 billion worth of its shares and had $8.4 billion remaining under its buyback authorization.

Polen Capital, an investment management company, made the following comments about Netflix, Inc. (NASDAQ:NFLX), in its “Polen Focus Growth Strategy” fourth quarter 2023 investor letter:

“Netflix has made meaningful progress on monetizing shared passwords and laying the foundation for consumer choice, although the ramp in advertising tier subscribers remains in the beginning stages. The low-hanging fruit may already have been picked on password sharing efforts, but our research shows there should be long tails of revenue and free cash flow growth. In our opinion, Netflix remains the most advantaged and profitable streaming service with opportunities to continue adding subscribers and raising prices as it demonstrates more value to consumers over time. Over the longer term, we also expect significant advertising revenue.”

You may also like to read 13 Best Electronic Stocks To Buy Now and 13 Stocks That Will Double in 2024