14 Hedge Fund Favorites with Strong Setup in 2026

9. Netflix, Inc. (NASDAQ:NFLX)

Netflix, Inc. (NASDAQ:NFLX) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

As of March 27, 2026, Oppenheimer maintained its “Outperform” rating and raised its price target to $135 (from $125) for Netflix, Inc. (NASDAQ:NFLX). The firm’s bullish stance reflects the company’s price increases in the U.S. and Canada, resulting in better revenue growth. With the company raising prices after 15 months, analysts cited the company’s dominance in the streaming market.

After the Warner Bros. Discovery-Paramount merger, Oppenheimer claimed that Netflix has greater flexibility to focus on content and that its ability to retain subscribers supports industry-low churn, thereby improving its content moat.

This comes amid Netflix, Inc. (NASDAQ:NFLX)’s apparent willingness to make more significant investments in AI technologies for filmmaking.

Bloomberg revealed on March 12, 2026, that Netflix would acquire InterPositive, an AI filmmaking firm, for up to $600 million, with a portion of the payment contingent on performance goals. According to Ben Affleck, the agreement implies that Netflix, Inc. (NASDAQ:NFLX) wants to deploy AI in content creation more quickly, while leveraging technology as a tool for filmmakers rather than a replacement.

Netflix, Inc. (NASDAQ:NFLX) is a global entertainment company that offers a subscription-based streaming service featuring TV shows, movies, documentaries, and games.