Top 10 Stocks to Watch as Investors Brace for Recession

4. Netflix Inc (NASDAQ:NFLX)

Number of Hedge Fund Investors: 121

Malcolm Ethridge, Capital Area Planning Group managing partner, said in a latest program on CNBC that Netflix Inc (NASDAQ:NFLX) has become a defensive play to buy as the company is poised to do well despite a recession risk.

“Netflix is one of those that ironically has become a bit of a defensive play right now in an environment where consumer spending has definitely changed, right? Where consumers aren’t necessarily spending on bigger ticket items and maybe not traveling so much. What they are willing to still continue to pay for is that home entertainment, and probably adding more subscribers in this quarter, in the next couple, as we are concerned about a recession. Netflix is probably going to be one of the bigger winners in that space. And so I think that the report right here just showed the strength of that name, even though you would assume the consumer would be pulling back on subscription services in the entertainment space.”

Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q4 2024 investor letter:

“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. Netflix, Inc. (NASDAQ:NFLX) was our top relative contributor; the company provided a favorable outlook for subscriber growth in 2025 and made progress in two key areas, live TV and advertising. The streaming service broadcast its first sporting events, including two National Football League games on Christmas, and said that the ad-supported plan it launched two years ago amassed 70 million subscribers, more than investors expected.”