Billionaire Stanley Druckenmiller is Selling These 5 Stocks

2. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 95  

Netflix, Inc. (NASDAQ:NFLX) owns and runs an online streaming platform. As the subscriber growth of the firm hits a snag, the company has started pushing ahead with plans for advertisements in order to keep pace with competitors like Disney. Per reports, the company is considering limited targeting for advertisers. This would effectively let Netflix control which programming to advertise in. The initial rates are $60 to reach a thousand viewers and a minimum investment of $20 million.

On September 7, Jefferies analyst Andrew Uerkwitz maintained a Hold rating on Netflix, Inc. (NASDAQ:NFLX) stock and lowered the price target to $230 from $243, noting the firm had a near-term lack of growth and a lot to prove. 

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 6.3 million shares worth more than $1.1 billion. 

In its Q2 2022 investor letter, L1 Capital International, an asset management firm, highlighted a few stocks and Netflix, Inc. (NASDAQ:NFLX) was one of them. Here is what the fund said:

“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.”