5 Best Consumer Discretionary Stocks to Buy Now

4. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 95

Netflix, Inc. (NASDAQ: NFLX) is a leading provider of streaming entertainment services based in Los Gatos, California. It boasts more than 220 million paid memberships across more than 190 countries and offers a film and television series library through distribution deals as well as its own productions.

In July, Netflix, Inc. (NASDAQ:NFLX) released its financial results for the second quarter of 2022. Its total revenue increased by 8.6% y-o-y to $7.8 billion, while its net income increased by 6.5% y-o-y to $1.4 billion, for the three months ended June 30, 2022. The normalized EPS was recorded at $3.20, beating the consensus by $0.25.

As of Q2 2022, 95 of the 895 hedge funds tracked by Insider Monkey held shares of Netflix, Inc. (NASDAQ: NFLX), worth $4.7 billion. Ken Fisher’s Fisher Asset Management was its largest shareholder with ownership of 6.5 million shares valued at $1.1 billion.

Here is what Oakmark Fund has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q2 2022 investor letter:

“Netflix‘s stock price was down considerably after providing a weaker than expected outlook for both subscriber growth and profit margins. After meeting with management and scrutinizing our investment thesis, we lowered our estimate of business value to account for the company’s softer near-term guidance. However, we believe the decline in the company’s share price more than adjusts for this. Indeed, Netflix now trades for a discount to the S&P 500 Index on next year’s GAAP earnings despite our view that the company remains a much better than average business run by a highly accomplished management team. We believe the company’s lead in streaming remains intact and we expect terminal operating margins to be substantially higher than they are today. Furthermore, we are encouraged by Netflix’s potential to enhance revenue growth through advertising, the monetization of password sharing and further penetrating international markets.”