Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE

31. Netflix, Inc. (NASDAQ:NFLX)

Consensus ROE: 8%

Number of Hedge Fund Investors in Q2 2024: 103

Netflix, Inc. (NASDAQ:NFLX) is an online streaming and production company. It is the biggest firm of its kind in the world courtesy of an early mover advantage that has enabled it to build a sizeable market share. Statistics show that Netflix, Inc. (NASDAQ:NFLX) has a user base of 247 million, which allows the firm to focus on maintaining users and controlling costs instead of focusing on growth like other streaming subscribers. To ensure that it does not lose subscribers to others that are backed by media giants such as Paramount, Netflix, Inc. (NASDAQ:NFLX) has to provide its users with a steady stream of content that is also catered to local tastes. Its in house production division has produced some of the best known shows in the world such as House of Cards, and key to Netflix, Inc. (NASDAQ:NFLX)’s stock performance is its ability to continually monetize its vast user base either through advertisements or fees.

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.”