Loomis Sayles, an investment management company, released its “Global Growth Fund” investor letter for the third quarter of 2025. A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.59% compared to 7.62% for the MSCI ACWI Index Net. The firm seeks to invest in high-quality businesses that possess sustainable competitive advantages and experience profitable growth, especially when these companies are trading at a substantial discount to their intrinsic value. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Loomis Sayles Global Growth Fund highlighted stocks such as Netflix, Inc. (NASDAQ:NFLX). Incorporated in 1997, Netflix, Inc. (NASDAQ:NFLX) is an entertainment services provider. The one-month return of Netflix, Inc. (NASDAQ:NFLX) was -4.70%, and its shares gained 20.51% of their value over the last 52 weeks. On November 21, 2025, Netflix, Inc. (NASDAQ:NFLX) stock closed at $104.31 per share, with a market capitalization of $441.995 billion.
Loomis Sayles Global Growth Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its third quarter 2025 investor letter:
“Founded in 1997, Netflix, Inc. (NASDAQ:NFLX) is one of the world’s leading internet entertainment platforms and a pioneer of subscription video on demand (SVOD), which it first launched in 2007. Today the company is a global leader with over 300 million paid subscribers, out of what we estimate is a total addressable market of one billion households outside of China, who access TV series, movies, mobile games, and other entertainment content across a wide variety of genres, languages, and devices. The company has subscribers in over 190 countries, with an estimated global audience in excess of 700 million, and generates almost 60% of its revenue from outside of North America.
We believe Netflix’s strong and sustainable competitive advantages include its focus, scale, brand, and a large installed base of clients that are protected by high barriers to entry. As a pioneer in SVOD, Netflix has amassed a subscriber base that we estimate to represent just under 40% of all SVOD subscribers globally and approximately 50% of the industry revenue share of the leading global providers. The company’s strong brand is reflected in both its premium pricing versus peers and mid-single-digit growth in average revenue per user over the past five years. Over the past decade, Netflix has invested over $120 billion in content and amassed an estimated over 14,000 hours of original content, which is estimated to represent just under two times the next five largest streaming competitors combined. Of course, it is not just the quantity, but quality of the content that matters. Over this same period, Netflix received over 1000 Emmy nominations and had 246 wins. The company has captured the first or second spot in total Emmy Awards in nine out of the last ten years, which we believe reflects the quality of its content. We believe the ability to create and acquire high quality content, based on cumulative knowledge and insights attained from its large installed base of subscribers, contributes to very high barriers to entry…” (Click here to read the full text)
Netflix, Inc. (NASDAQ:NFLX) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 133 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the second quarter, compared to 150 in the previous quarter. While we acknowledge the risk and potential of Netflix, Inc. (NASDAQ:NFLX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Netflix, Inc. (NASDAQ:NFLX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Netflix, Inc. (NASDAQ:NFLX) and shared the list of best communication and media stocks to buy. In its Q3 2025, investor letter, RiverPark Large Growth Fund shared that Netflix, Inc. (NASDAQ:NFLX) is well positioned to deliver double -digit earnings growth. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
