Do You Believe in the Growth Prospects of Netflix (NFLX)?

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets recorded strong gains in the third quarter, with the S&P 500 Total Return Index rising 8.12% and the Russell 1000 Growth Index returning 10.51%. The fund also surged in the quarter and returned 4.73%. Market leadership was narrow in the quarter, with a few mega-cap tech and consumer companies thriving on strong AI innovation. Information Technology, Consumer Discretionary, and Communication Services led sector performance, while Energy and Utilities lagged. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, RiverPark Large 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 -11.15%, and its shares gained 26.58% of their value over the last 52 weeks. On November 17, 2025, Netflix, Inc. (NASDAQ:NFLX) stock closed at $110.29 per share, with a market capitalization of $467.334 billion.

RiverPark Large Growth Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its third quarter 2025 investor letter:

“Netflix, Inc. (NASDAQ:NFLX): NFLX declined in the quarter following mixed earnings that showed solid top-line growth but softer guidance and higher content costs. Subscription additions slowed modestly, and management commentary around margin pressures tempered investor enthusiasm. Competitive intensity from major technology peers also contributed to multiple compression despite otherwise healthy fundamentals.

We continue to view Netflix as the global leader in streaming entertainment, supported by unmatched scale, brand strength, and growing diversification into ad-supported tiers and interactive content. With continued pricing power and disciplined expense management, we believe NFLX can sustain double-digit earnings growth over the medium term.”

Netflix, Inc. (NFLX): Not An Analyst Who Isn't Buying Netflix, Says Jim Cramer

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 most fantastic stocks every investor should pay attention to. 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.