Here’s What Supports Netflix’s (NFLX) Long-Term Growth

Sands Capital, an investment management company, released its “Sands Capital Technology Innovators Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned 26.0% (net) in the second quarter compared to a 21.9% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. Easing geopolitical concerns, renewed AI optimism, resilient macroeconomic data, strong corporate earnings, and technical tailwinds boosted the markets for a quick recovery in the quarter. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its second quarter 2025 investor letter, Sands Capital Technology Innovators 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 -9.94%, and its shares gained 85.59% of their value over the last 52 weeks. On July 23, 2025, Netflix, Inc. (NASDAQ:NFLX) stock closed at $1,176.78 per share, with a market capitalization of $500.044 billion.

Sands Capital Technology Innovators Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its second quarter 2025 investor letter:

“Netflix, Inc. (NASDAQ:NFLX) is the world’s largest producer and distributor of video streaming content, measured by content spending and subscriber base. Shares rose following strong first quarter 2025 results, which reflected solid subscriber growth and retention, continued margin expansion, and increased capital returns, including a $3.5 billion share repurchase—the largest in the company’s history. Advertising momentum continued, bolstered by reports of a $9 billion internal ad revenue target by 2030. In our view, these results underscore the compelling value of Netflix’s robust content portfolio, competitive pricing, and growing ad-supported tier. Video entertainment has historically remained resilient during economic downturns, and we expect Netflix’s scale and market leadership to support ongoing durability and long-term growth.”

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

A home theater with family members enjoying streaming content together.

Netflix, Inc. (NASDAQ:NFLX) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 150 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the first quarter, compared to 144 in the fourth 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 stocks Jim Cramer shared thoughts on. Netflix, Inc. (NASDAQ:NFLX) contributed to the relative performance of Aristotle Atlantic Focus Growth Strategy in the second quarter. In addition, please check out our hedge fund investor letters Q2 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.