5 Best Content Delivery Network Stocks To Buy Now

4. Netflix Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holdings: 95

Headquartered in Los Gatos, California, Netflix Inc. (NASDAQ:NFLX) is an American subscription streaming service, production company, and in-house CDN service. It is the second largest entertainment company in the world by total market capitalization. Although the company lost more than 950,000 subscribers in Q2 2022, analysts are confident about the stock’s fundamentals and long-term projections, citing the current losses to temporary headwinds and overall loss of purchasing power.

On September 28, Atlantic Equities analyst Hamilton Faber upgraded Netflix Inc. (NASDAQ:NFLX) to Overweight from Neutral, and raised the price target to $283 from $211. The analyst has favorable expectations from the company’s upcoming ad-supported service launch, considering it crucial and noting that its benefits has not yet been reflected in the consensus estimates for Netflix Inc. (NASDAQ:NFLX).

Here is what IP Capital Partners had to say about Netflix Inc. (NASDAQ:NFLX) in their Q2 2022 investor letter:

“Netflix was the top performance detractor for the year. After a brutal growth acceleration throughout 2020, followed by an expected moderation throughout 2021, 2022 was an important year to define whether the company would be able to maintain an extremely consistent historical growth trend until then.

Among the 37 million subscribers added in 2020 – boosted by the lockdown – and the 18 million added in 2021, the company added an average of 27 million subscribers in the last two years, a number practically equal to the 29 and 28 million subscribers that Netflix added, respectively, in 2018 and 2019.

Considering, also, that the 8.3 million subscribers added in the last quarter of 2021 were equivalent to the equivalent quarters of the previous three years ^[ 2 ] , it seemed reasonable to us to assume that the anticipation of demand caused by the pandemic in 2020 had reversed throughout 2021, bringing together the conditions for a more normalized growth in 2022.” (Click here to see the full text)