Wells Fargo’s Tech Stocks To Beat The S&P: 14 Top AI & Non-AI Stocks

2. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders In Q3 2024: 121

NTM EPS Estimate: $22.77

Netflix, Inc. (NASDAQ:NFLX) is the world’s biggest video streaming company. It enjoys a wide moat in the industry and is the market leader. Netflix, Inc. (NASDAQ:NFLX)’s market position has enabled it to amass a whopping 282.7 million subscribers under its belt. This subscriber base is the key to the firm’s hypothesis, as its fate now depends on the ability to monetize the user base, retain its customers, and add new users into its fold. Netflix, Inc. (NASDAQ:NFLX) also benefits from the fact that it produces television shows and movies, which sets it apart by offering exclusive content to its subscribers. The ability to take on traditional television channels and bolster its user base is central to creating tailwinds as is evident by Netflix, Inc. (NASDAQ:NFLX)’s 6.5% share price gain since the historic fight between Mike Tyson and Jake Paul which saw 60 million household worldwide tune into its platform.

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.”