Sculptor Capital’s Top 5 Stock Picks

4. Netflix, Inc. (NASDAQ:NFLX)

Sculptor Capital’s Stake Value: $388,262,000

Percentage of Sculptor Capital’s 13F Portfolio: 3.20%

Number of Hedge Fund Holders: 106

Netflix, Inc. (NASDAQ:NFLX), a subscription-based streaming service and original production company, is one of Sculptor Capital’s top stock picks from the third quarter. Sculptor Capital owns 636,141 Netflix, Inc. (NASDAQ:NFLX) shares, worth $388.2 million, which accounts for 3.2% of his Q3 securities. 

As of Q3 2021, 106 hedge funds monitored by Insider Monkey were bullish on Netflix, Inc. (NASDAQ:NFLX), down from 113 in the preceding quarter. One of the leading Netflix, Inc. (NASDAQ:NFLX) stakeholders is Boykin Curry’s Eagle Capital Management, with 2.74 million shares valued at $1.67 billion. 

Netflix, Inc. (NASDAQ:NFLX) posted its Q3 results on October 19, with EPS for the period being $3.19, beating estimates by $0.63. The $7.63 billion Q3 revenue was up 16.28% from the prior-year quarter, exceeding estimates by $0.16 million. 

KeyBanc analyst Justin Patterson raised the price target on Netflix, Inc. (NASDAQ:NFLX) on November 15 to $725 from $690 and kept an Overweight rating on the shares, stating that he was confident about the company’s growth opportunities. 

Here is what Ensemble Capital has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2021 investor letter:

“Netflix stock had a disappointing first half of 2021 performance, treading water while the S&P 500 rallied, after a very strong 67% return in 2020. It benefited from the global pandemic in 2020, signing on 36.6 million new subscribers vs the typical 25 million or so it typically does. Total subscribers exceeded 200 million, up 22% over the previous year. However, in the first half of 2021, new subscriber additions slowed substantially, totaling only 5.5 million due to slower new content additions impacted by production delays, a resumption of outdoor activity as people everywhere adjusted to living with COVID, and the impact of a “pull-forward effect” on subscriber growth in last year’s very strong results. The third quarter saw new content velocity start to pick up, which is usually what drives new subscribers to the service, with expectations of an even stronger content slate going into the final quarter of the year, causing the stock to increase 15% in the quarter.”