5 Best News and Digital Media Stocks To Buy

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 117

Netflix, Inc. (NASDAQ:NFLX) is one of the best entertainment stocks to watch. In the fourth quarter of 2022, Netflix, Inc. (NASDAQ:NFLX) gained 7.66 million new subscribers, bringing its total number of paid memberships worldwide to 230.75 million. 

On April 14, Dan Salmon, an analyst at New Street, increased the firm’s price target on Netflix, Inc. (NASDAQ:NFLX) from $320 to $333, while maintaining a Neutral rating on the shares. The firm surveyed 942 U.S. Netflix users to understand their payment and cancellation habits, the popularity of the new Basic with Ads tier, and their potential response to password sharing restrictions. According to the survey, 54% of non-payers would be willing to pay for their own membership if their access was canceled, and 70% would choose a non-ad supported tier. The analyst believes that these results indicate a positive outcome for Netflix, Inc. (NASDAQ:NFLX)’s password restrictions when they are introduced to the market and could be successful globally.

According to Insider Monkey’s fourth quarter database, 117 hedge funds were bullish on Netflix, Inc. (NASDAQ:NFLX), compared to 115 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is a prominent stakeholder of the company, with 5.15 million shares worth $1.5 billion. 

LVS Advisory made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its Q1 2023 investor letter:

“We initiated our investment in Netflix, Inc. (NASDAQ:NFLX) during the summer of 2022 (discussed in our Q3 2022 letter). Netflix was a baby thrown out with the bath water by the market last year. We found Netflix attractive because the company signaled that it would hold expenses flat while better monetizing its account base via an advertising tier and paid sharing. Despite an impeccable track record of execution, the market didn’t believe Netflix could navigate this transition. While the market now appears to buy into the expense story the market doesn’t fully appreciate the revenue growth story that will play out from the new monetization initiatives. Furthermore, the stock’s pullback during the banking crisis provided an attractive entry point for us to make Netflix an overweight position.”

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