5 Stocks You Should Sell Before Recession

In this article, we discuss the 5 stocks you should sell before recession. If you want to read about some stocks you should sell before a recession, go directly to 10 Stocks You Should Sell Before Recession. 

5. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 113  

Netflix, Inc. (NASDAQ:NFLX) owns and runs an entertainment platform. On April 19, the firm missed market estimates on revenue by $70 million. The shares have lost nearly 61% in value year-to-date, with over 20% of this loss coming in a single day on April 19 as the company revealed that it had lost 200,000 subscribers on a net basis in the fourth quarter, falling way short of expectations of an increase of 2.5 million subscribers. The firm expects to lose another 2 million subscribers in the second quarter. 

On April 21, Citi analyst Jason Bazinet kept a Buy rating on Netflix, Inc. (NASDAQ:NFLX) stock and lowered the price target to $295 from $450. The price target was cut merely a few hours after the company posted disappointing first quarter results. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Netflix, Inc. (NASDAQ:NFLX) with 4.1 million shares worth more than $2.4 billion. 

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Netflix, Inc. (NASDAQ:NFLX) was one of them. Here is 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, Inc. (NASDAQ:NFLX) 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, Inc. (NASDAQ:NFLX) has a strategic advantage in scaling its business given its large content library and lead versus peers in establishing local content studios and partnerships.”