9 Best Long-Term Stocks to Buy According to D. E. Shaw

3. Netflix, Inc. (NASDAQ:NFLX)

Share Price Return Between July 1 and November 11: -12.15%

D.E. Shaw’s Q2 Stake Value: $1.27 billion

Number of Hedge Fund Holders: 133

Netflix, Inc. (NASDAQ:NFLX) ranks among the best long-term stocks to buy according to D. E. Shaw. Despite the streaming giant’s recent stock fall, Bernstein SocGen Group reaffirmed its Outperform rating and $1,390 price target for Netflix, Inc. (NASDAQ:NFLX) on October 23. Following its third-quarter earnings announcement, Netflix’s stock fell 10% in spite of meeting market forecasts with a 17% year-over-year revenue growth and achieving a 34% EBIT margin (excluding the impact of Brazil).

Netflix, Inc. (NASDAQ:NFLX) is forecasting $45.1 billion in revenue for the full year, up 16% from the previous year and consistent with earlier projections of 15% to 16%. Additionally, the streaming giant reported its best quarter for advertising revenues during the period. According to co-CEO Greg Peters, the company is on course to more than double its ad revenue this year.

The company approaches the fourth quarter with what Bernstein calls “perhaps the best content lineup ever,” making the market response confusing to the firm.

Since the COVID-19 outbreak, Netflix, Inc. (NASDAQ:NFLX) has seen seven single-day drops of 8% or more, according to Bernstein. These drops were attributed to a number of issues, including disappointing forecasts and fears around sluggish subscriber growth.

Netflix, Inc. (NASDAQ:NFLX) is a global streaming platform that offers TV shows, films, and original content to subscribers through internet-connected devices.