Goldman Sachs’ Best Hedge Fund Stock Picks: Top 20 Stocks

15. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Investors in Q2 2024: 103

GS’ Number Of Funds: 16

Netflix, Inc. (NASDAQ:NFLX) is the leading player in the global streaming market courtesy of its early mover advantage in the industry. Tracing its roots back to the 1990s, the firm started out as a rental company for DVDs that took online orders. Now, it is the largest streaming service in the world courtesy of having 247 million million users in its fold. The vast user base means that Netflix, Inc. (NASDAQ:NFLX) benefits from significant brand power and recognition. Content freshness is a key requirement for the firm to keep its competitive edge, and on this front, Netflix, Inc. (NASDAQ:NFLX) also operates its film studios that often cater to local movie and television show tastes for the different countries in which it has a global presence. Key to its hypothesis is Netflix, Inc. (NASDAQ:NFLX)’s continued ability to monetize its platform, and it also enjoys the advantages of growth and profitability which are the hallmarks of performance in the streaming industry.

Ensemble Capital mentioned Netflix, Inc. (NASDAQ:NFLX) in its Q1 2024 investor letter. Here is what the firm said:

“The rapid recovery of Netflix’s subscriber growth has shocked investors who drove the stock down to a price of just $166 in May 2022. While at the time, bearish investors were declaring the company’s growth days were behind it, instead the company added a remarkable 13.1 million new subscribers in the most recent quarter. This was the single largest quarterly subscriber addition other than the large gains experienced during the first quarter of COVID. For all of 2023, the company added nearly 30 million new subscribers, making it the largest annual gain in Netflix history other than the first year of COVID.”