5 Best Communication Stocks To Buy Now

3. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 113

Netflix, Inc. (NASDAQ:NFLX) is a global video streaming firm which provides a range of content through a subscription-based model. Even though competition by new entrants such as Apple TV and Disney Plus have slowed subscriber growth in recent times, Netflix, Inc. (NASDAQ:NFLX) retains the majority of the global market share in streaming services.

On April 7, Stifel analyst Scott Devitt maintained a ‘Buy’ rating on Netflix, Inc. (NASDAQ:NFLX) shares, and revised the price target to $460 from $500. On March 30, JPMorgan analyst Doug Anmuth maintained an ‘Overweight’ rating and a $605 price target on Netflix, Inc. (NASDAQ:NFLX) shares. He noted that the firm has “meaningful room” for further global subscriber penetration, given it is currently 29% penetrated among the 776 million global broadband subscribers and 33% penetrated among the 675 million global pay TV subscribers.

In the fourth quarter, Netflix, Inc. (NASDAQ:NFLX) posted a revenue of $7.71 billion, which shows a jump of 16.03% year-on-year and beat estimates by $2.24 million. EPS for the quarter was recorded at $1.33, outperforming estimates by $0.51.

Hedge funds were seen snapping up the video streaming giant in the fourth quarter, where 113 hedge funds were long on the company shares. In comparison, 106 hedge funds held positions in Netflix, Inc. (NASDAQ:NFLX) in the third quarter. Fisher Asset Management, one of the largest hedge funds in the world, was the leading shareholder in Netflix, Inc. (NASDAQ:NFLX) during the fourth quarter, with a position comprising of 5.42 million shares worth $3.26 billion.

ClearBridge Investments talked about Netflix, Inc. (NASDAQ:NFLX) in its Q4 2021 investor letter. Here’s what the fund said:

“We were quite active during the quarter, leveraging volatility to add 10 new names to the portfolio while exiting seven others. Among our new purchases was Netflix in the communication services sector. Netflix is the global leader in the production and distribution of streaming entertainment, operating a high-quality subscription business with room for continued growth in a large addressable market. The stock has faced headwinds due to concerns around subscriber growth. We attribute this recent weakness to COVID-related production delays that have slowed the pace of new shows premiering on the platform and believe Netflix has a strategic advantage in scaling its business given its large content library and lead versus peers in establishing local content studios and partnerships.”