Here’s Why Netflix (NFLX) Outperformed in Q4

Alger Capital, an investment management company, released its “Alger Spectra Fund” fourth quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, Class A shares of the fund underperformed the Russell 3000 Growth Index. The portfolio’s largest sector overweight in the quarter was Energy and the largest sector underweight was Information Technology. Energy and Utility sectors were the significant performance contributors, while Information technology and Consumer Discretionary sectors detracted from the performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Alger Capital highlighted stocks Netflix, Inc. (NASDAQ:NFLX) in the Q4 2022 investor letter. Headquartered in Los Gatos, California, Netflix, Inc. (NASDAQ:NFLX) is a streaming platform. On February 1, 2023, Netflix, Inc. (NASDAQ:NFLX) stock closed at $361.99 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was 16.88%, and its shares lost 10.75% of their value over the last 52 weeks. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $161.211 billion.

Alger Capital made the following comment about Netflix, Inc. (NASDAQ:NFLX)  in its Q4 2022 investor letter:

Netflix, Inc. (NASDAQ:NFLX) provides a subscription-based service for streaming movies and television episodes over the internet. In doing so, it is redefining how people consume entertainment in a rapidly digitizing world. Shares outperformed during the period as the company reported solid third quarter results, driven by net subscription additions that beat expectations. Management also raised fiscal fourth quarter guidance owing to strong customer acquisitions across all regions. Moreover, the company remains optimistic on new monetization efforts around ad pricing within their basic account tier.”

Netflix, Inc. (NASDAQ:NFLX) is in 19th position on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 115 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the third quarter, which was 95 in the previous quarter.

We discussed Netflix, Inc. (NASDAQ:NFLX)  in another article and shared the list of dumbest companies to invest in. In addition, please check out our hedge fund investor letters Q4 2022 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.