Is Netflix (NFLX) a High-Growth Stock?

Investment management company Bireme Capital recently released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 34.7% net of fees compared to a 7.6% return for the S&P 500. The strategy has compounded at 27.4% annualized, besting the market by 16% a year. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Bireme Capital highlighted stocks like 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 17, 2023, Netflix, Inc. (NASDAQ:NFLX) stock closed at $347.96 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was 1.59%, and its shares lost 11.07% of their value over the last 52 weeks. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $154.963 billion.

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

Netflix, Inc. (NASDAQ:NFLX) appreciated 25% in the quarter, well off its lows but still down more than 50% on the year. Q3 results saw a return to subscriber growth, with the firm adding 2.4m and finishing at an all time high 223m subscribers. Netflix also debuted its much-anticipated advertising tier in November, pricing it at a 30% discount in the US. While it is still very early days, we think by 2028 Netflix’s ad-supported tier will have tens of millions of subscribers and generate $10+ billion in revenue at high margins. We expect earnings to exceed $30 per share by then, roughly triple what the company earns today.”

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 Jim Cramer stocks this month. 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.