5 Best-Performing S&P 500 Stocks in the Last 10 Years

4. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 95

10-Year Share Price Returns as of September 13: 2,530%

As of September 13, Netflix, Inc. (NASDAQ:NFLX) stock has skyrocketed about 2,530% in the last decade. This makes Netflix, Inc. (NASDAQ:NFLX) one of the strongest performers in the S&P 500 group. 

On September 7, Jefferies analyst Andrew Uerkwitz lowered the price target on Netflix, Inc. (NASDAQ:NFLX) to $230 from $243 and kept a Hold rating on the shares after revising his model to factor in U.S. password sharing, the ad-supported tier, and market conditions. He remains “cautiously positive” on Netflix, Inc. (NASDAQ:NFLX) if the company can prove an ad-supported video-on-demand offering raises both ARPU and subscribers higher and maintains its content budget. He thinks Netflix, Inc. (NASDAQ:NFLX) is “an attractively priced stock” and sees the September quarter as significant and “wouldn’t step in front of it”.

Among the hedge funds tracked by Insider Monkey, Netflix, Inc. (NASDAQ:NFLX) was part of 95 hedge fund portfolios at the end of the second quarter of 2022, compared to 109 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with 6.5 million shares valued at $1.15 billion. 

Here is what L1 Capital International specifically said about Netflix, Inc. (NASDAQ:NFLX) in its Q2 2022 investor letter:

“While it seems an eternity ago, in April Netflix, Inc. (NASDAQ:NFLX) reported Q1 2022 results and gave forward guidance which flashed many red flags. Not only were subscription numbers (and forward guidance) well below expectations, but management also gave new disclosure on the massive extent of password sharing which raises concerns that Netflix is much more mature than we had previously considered, constraining future growth. Management also haphazardly announced it will introduce an advertising-supported subscription tier, albeit currently lacking the necessary capabilities to do so. Despite continuing to produce world-leading content, we have lost confidence in management’s ability to respond to increased competition and a more challenging operating environment. We sold our entire investment in Netflix immediately post Q1 2022 results. Currently we do not consider Netflix to meet our stringent quality criteria to be considered as a potential investment in the Fund.”