Apple Inc. (AAPL), Google Inc (GOOG): Billionaire Tiger Cub Blows Off Big Tech

Netflix, Inc. (NASDAQ:NFLX) has been on a tear of late after posting better than expected 1Q numbers. EPS of $0.31 was well above consensus estimates and prior-year quarters. Also, subscriber additions pushed its top line higher by 17%. The company’s paid streaming-subscriber base increased 40.2% on a year-over-year basis. Consensus shows that revenue is expected to be up between 18% and 20% for 2013 and 2014.

The recent results could be that a sign that Netflix has turned a corner, with worldwide streaming subscriber growth actually becoming a reality. There is also the idea that Netflix could further penetrate the potential subscriber base thanks to mobile devices, where individuals can now use Netflix across a variety of devices.

Bottom line

Blue Ridge Capital found that Apple Inc. (NASDAQ:AAPL) and Google no longer presented value, and I tend to agree, the competition to too fierce for the time being. Another one of Blue Ridge’s sell-offs, Disney, appears to be fairly valued and only offers investors a 1% dividend yield.

The fund’s two additions are both big players in the content/entertainment industry. Both have their own respective catalysts, with Comcast’s recent purchase of NBC being a long-term positive, and Netflix’s continued international expansion efforts gaining traction.  I tend to like both stocks.

The article Billionaire Tiger Cub Blows Off Big Tech originally appeared on Fool.com and is written by Marshall Hargrave.

Marshall is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.