5 Pandemic Stocks That Are Losing Value

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 113

Loss in Share Price Over 6 Months as of March 1: 34.37%

Netflix, Inc. (NASDAQ:NFLX) is a digital streaming company that also owns an original production house. The stock gained tremendously during the pandemic when cinemas, entertainment establishments, and outdoor spaces closed and people were forced to stay indoors. 

Netflix, Inc. (NASDAQ:NFLX) is an “at-home stock” that recently suffered from disappointing subscriber figures, as disclosed in its Q4 earnings report, and stay-at-home stocks are suffering a correction much like the Nasdaq as a whole. The company said it expects to add just 2.5 million subscribers in the first quarter of 2022, way below the 6.93 million that analysts expected.

On February 18, JPMorgan analyst Doug Anmuth said that Netflix, Inc. (NASDAQ:NFLX) shares “remain controversial” as the in-line Q4 subscribers and “light” Q1 outlook are driving lower growth expectations and increased questions around subscriber penetration, the impact of content, and competition. He reiterated an Overweight rating on the shares with a $605 price target but cautions that the potential subscriber impact from the recent price increase “may lie ahead”.

According to the fourth quarter database of Insider Monkey, 113 hedge funds were long Netflix, Inc. (NASDAQ:NFLX), up from 106 funds in the quarter earlier. Fisher Asset Management is the biggest stakeholder of the company, with 5.4 million shares worth $3.2 billion. 

Here is what Pershing Square Capital Management has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q4 2021 investor letter:

“Amidst a volatile market backdrop in 2022, hedging gains provided the capital to fund the purchase of Netflix. World’s leading streaming subscription video-on-demand company. Launched its category-pioneering streaming service in 2007. 222 million global paid subscribers in over 190 countries today. Vast and diverse library of high-quality content. Most Emmy-winning and Oscar-winning TV network / studio of 2021. Industry-leading volume of original content episodes released per quarter. High-performance culture led by a visionary management team. Subscription-based, highly recurring revenues. 26% annual streaming revenue growth and ~360 bps of average annual EBIT margin expansion over the last three years. Modest financial leverage (1.5x Net Debt / EBITDA)…” (Click here to see the full text)

You can also take a look at 10 Energy Stocks to Buy According to Blackstone Group and 10 EV Charging Stocks to Buy Now. 

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