10 Best Fundamental Stocks to Buy According to Billionaires

5. Netflix, Inc. (NASDAQ:NFLX)

5-year Revenue Growth: 14.1%

5-year Net Income Growth: 36.0%

Number of Billionaire Investors: 25

Number of Hedge Fund Holders: 144

Netflix, Inc. (NASDAQ:NFLX) offers entertainment services. Moffett Nathanson upped the company’s rating from “Neutral” to “Buy,” increasing the 12-month price target from $850 to $1,100 per share. The firm has highlighted Netflix, Inc. (NASDAQ:NFLX)’s robust standing in the streaming market, expectations for strong margin improvement, and improving possibilities for advertisement income. Moffett Nathanson lauded the “Netflix flywheel” effect, in which the company’s subscriber base continues to support more content expenditure, thereby bolstering engagement and justification of changes in price.

The ad-supported tier offers a strong opportunity for Netflix, Inc. (NASDAQ:NFLX) to exploit new revenue streams and enhance the subscriber base. With the company refining its ad technology and targeting capabilities, it can capture a significant share of the global TV advertising market. Notably, the capability to provide advertisers access to large and engaged audiences with precise targeting can help the company command premium rates. Also, the ad-supported tier can act as an entry point for price-sensitive consumers, which can result in upgrades to higher-priced tiers in the long term.

Harding Loevner, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:

“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.”