5 Biggest Gainers on Thursday

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 95

Shares of Netflix, Inc. (NASDAQ:NFLX) rose over four percent this morning after Evercore ISI improved its ratings for the video-streaming giant from “In Line” to “Outperform.” Analyst Mark Mahaney thinks the company’s revenue would get a lift from its ad-supported tier.

Mahaney also pointed towards an additional growth from password sharing fees. He remains bullish on the global video-streaming market. He also raised his price target for Netflix, Inc. (NASDAQ:NFLX) from $245 per share to $300 per share.

Meanwhile, Netflix, Inc. (NASDAQ:NFLX) appeared in the second-quarter 2022 investor letter of investment management firm L1 Capital. Here’s what the firm said:

“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 peek at Best Self-Driving Stocks To Invest In and 10 Best Cyclical Stocks for Inflation.

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