Is it a Good Choice to Invest in Netflix (NFLX)?

Ensemble Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund has focused on economic and COVID-related commentary. The fund also covered the notable detractors and contributors to its fourth-quarter investment performance and offered a discussion of an aspect of its investment strategy. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Ensemble Capital Management, in its Q4 2021 investor letter, mentioned Netflix, Inc. (NASDAQ: NFLX) and discussed its stance on the firm. Netflix, Inc. is a Los Gatos, California-based production company with a $176.0 billion market capitalization. NFLX delivered a -34.02% return since the beginning of the year, while its 12-month returns are down by -29.67%. The stock closed at $397.50 per share on January 21, 2022.

Here is what Ensemble Capital Management has to say about Netflix, Inc. in its Q4 2021 investor letter:

“Netflix stock took a breather in the first half of this year after very strong performance in 2020. This reversed starting in August as investors’ attention turned to the strong slate of new shows the company would be launching at year end and in early 2022 after COVID slowed content production and created a gap in new hit shows for the company. But the selloff in fast growing, highly valued technologyrelated companies that began in mid-November caused the stock to give back the gains it achieved earlier in the quarter with the stock finishing down 1% for the quarter.”

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Our calculations show that Netflix, Inc. (NASDAQ: NFLX) ranks 15th on our list of the 30 Most Popular Stocks Among Hedge Funds. NFLX was in 106 hedge fund portfolios at the end of the third quarter of 2021, compared to 113 funds in the previous quarter. Netflix, Inc. (NASDAQ: NFLX) delivered a -40.21% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on NFLX in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.