We recently published a list of 10 Stocks Wall Street is Talking About These Days. In this article, we are going to take a look at where Netflix, Inc. (NASDAQ:NFLX) stands against other stocks Wall Street is talking about these days.
Gene Muster from Deepwater Asset Management said in a recent interview with CNBC that investors should take a “targeted” approach while investing in major tech companies and look for “pockets” of opportunities.
“I think that when you answer the question more holistically, there’s still—if you look at, uh, we looked at 20 different companies, tech companies, and their reporting season and graded each of them—and of the six Mag Seven, five of the six we gave an A grade, and so there’s still this outperformance that you’re seeing with the fundamentals on these companies, but that doesn’t mean that the best opportunities to invest is necessarily with them, and so again, more of a targeted approach.”
Munster also talked about some major tech companies and said he believes Jensen Huang’s AI chip giant is still “cheap” when it comes to its stock price. However, the analyst advised investors to look for smaller companies:
“You have to be uh strategic in terms of what you’re buying. If you wanted to buy a basket, I would buy a basket of smaller tech companies, sub 500 billion dollars, and focus on those. It’s probably where your bigger outperformance is.”
For this article, we picked 10 stocks currently making moves on Wall Street. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Investors: 121
Steve Weiss, Founder and Managing Partner of Short Hills Capital Partners, explained in a recent program on CNBC why he’s piling into Netflix, Inc. (NASDAQ:NFLX). He believes the company has strong pricing power and it would not be impacted even during a recession:
“They will do well in a recession because you will cut down the number of streaming services that you have. They have the most content, and they still have pricing power. They can raise prices every year if they want, every 6 months. It won’t hurt demand. Plus, there are so many levers they can pull. We’ve seen them start to get into sports. I would expect more of that. So to me, it’s just a quintessential stock for this market. It may get overvalued shortly if this continues, but I’m not going to sell at that point. I did buy some for a trading position to get more exposure to the market, so I would let that go. But the core position will stay.”
Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q4 2024 investor letter:
“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. Netflix, Inc. (NASDAQ:NFLX) was our top relative contributor; the company provided a favorable outlook for subscriber growth in 2025 and made progress in two key areas, live TV and advertising. The streaming service broadcast its first sporting events, including two National Football League games on Christmas, and said that the ad-supported plan it launched two years ago amassed 70 million subscribers, more than investors expected.”
Overall, NFLX ranks 7th on our list of stocks Wall Street is talking about these days. While we acknowledge the potential of NFLX our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NFLX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
