20 Most Favored Communication Services Stocks According to Hedge Funds

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2. Netflix Inc. (NASDAQ:NFLX)

Sector/Industry: Communication Services (Entertainment)

Share Price: $90.73

Potential Upside: 44.1%

Number of Hedge Fund Holders: 154

Netflix Inc. (NASDAQ:NFLX) is one of the best communication services stocks according to Hedge Funds.

On December 17, James Heaney of Jefferies reiterated his optimism on Netflix, Inc. (NASDAQ:NFLX). Heaney assigned a Buy rating to the stock with a target price of $134. As per the analyst’s forecast, investors should expect an upside of almost 48% from the current level.

Heaney downplayed a potential bidding war scenario related to the company’s potential acquisition of Warner Bros. Discovery (WBD), given a strong likelihood of the deal being finalized. He believes that the market has yet to price in the full synergies that would result from this transaction. Besides that, Heaney is also confident about the company’s organic growth prospects.

Peter Supino of Wolfe Research also reaffirmed his Buy rating on Netflix Inc. (NASDAQ:NFLX) on December 15. Supino lowered his price target from $139 to $121, which still leads to a 33% upside potential. The revised rating is part of Wolfe Research’s 2026 outlook adjustments for media & entertainment and telecom & cable segments.

Netflix Inc. (NASDAQ:NFLX) is a subscription-based entertainment service provider that streams television shows, films, documentaries, and more. It uses advanced algorithms to offer device compatibility and personalization for its global users. Subscribers can access an extensive library of content through internet-connected devices such as set-top boxes, laptops, and mobile phones.

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