Billionaire Daniel Sundheim’s Portfolio: 5 New Stock Picks

In this article, we discuss the 5 new stock picks of billionaire Daniel Sundheim. If you want our detailed analysis of these stocks, go directly to Billionaire Daniel Sundheim’s Portfolio: 10 New Stock Picks. 

5. Netflix, Inc. (NASDAQ:NFLX)

D1 Capital Partners’ Stake Value: $236,790,000

Percentage of D1 Capital Partners’ 13F Portfolio: 1.32%

Number of Hedge Fund Holders: 106

In Q3 2021, Daniel Sundheim’s D1 Capital Partners purchased 387,964 Netflix, Inc. (NASDAQ:NFLX) shares, worth $236.7 million, accounting for 1.32% of the firm’s total 13F portfolio. Netflix, Inc. (NASDAQ:NFLX) is a subscription-based digital streaming and original production company. 

JPMorgan analyst Doug Anmuth is “incrementally positive” on Netflix, Inc. (NASDAQ:NFLX) shares, stating that Netflix, Inc. (NASDAQ:NFLX)’s Q4 content strengthened in December and that subscriber growth should follow. He reiterated an Overweight rating on Netflix, Inc. (NASDAQ:NFLX), keeping a $750 price target.

Of the 106 hedge funds that were bullish on Netflix, Inc. (NASDAQ:NFLX) in the third quarter, Fisher Asset Management is one of the largest Netflix, Inc. (NASDAQ:NFLX) shareholders, with a $2.53 billion position in the company. 

Here is what FPA U.S. Core Equity Fund has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2021 investor letter:

“Among the Fund’s biggest winners was Netflix (NASDAQ: NFLX), which appreciated 15.5% during the third quarter. I continue to be very bullish on NFLX’s long-term potential. The market can often take a short-term view and I believe such is the case with how it trades NFLX from quarter to quarter, typically based on how many paid net subscriptions it garners.

I believe the market may define NFLX’s total addressable market too narrowly by focusing on the approximate 74 million of pay TV households in the U.S. and one billion pay TV households across the globe or about 700 million ex-China. Based on those denominators, NFLX’s paid memberships of approximately 74 million in North America and 135 million throughout the rest of the world (as of 6/30/21) would point to a business that is much more mature (at around 30% penetrated) than it likely is…” (Click here to see the full text)