Mark Cuban Stock Portfolio: 5 Stocks To Consider

In this article, we discuss the 5 stocks to consider in the Mark Cuban stock portfolio. If you want to read about some more stocks in the Mark Cuban portfolio, go directly to Mark Cuban Stock Portfolio: 12 Stocks To Consider.

5. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 102

Netflix, Inc. (NASDAQ:NFLX) provides entertainment services and is headquartered in California. Mark Cuban has been a big fan of Netflix, Inc. (NASDAQ:NFLX) for almost a decade. In 2014, he started purchasing shares in the streaming firm and has continued to be bullish on the stock since then. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Netflix, Inc. (NASDAQ:NFLX) with 4.6 million shares worth more than $1.7 billion. 

In its Q3 2023 investor letter, RiverPark Advisors, an asset management firm, highlighted a few stocks and Netflix, Inc. (NASDAQ:NFLX) was one of them. Here is what the fund said:

“Netflix, Inc. (NASDAQ:NFLX): NFLX was a top detractor in the quarter on weaker than expected reported and guided revenue, despite 2Q subscriber growth that was well above expectations (+5.9 million versus estimates of +2.1 million). The company’s subscriber growth re-accelerated following the company’s crack down on password sharing, and the rollout of the advertising supported subscriber offering known as the Ad Tier, but the average revenue per user came in below expectations and is expected to remain muted in the near term. NFLX reiterated expectations for full year 2023 operating margins of 18-20%, and guided free cash flow to at least $5 billion, up from prior guidance of $3.5 billion. Despite the positive momentum in the company’s business, market participants took comments from management at a recent conference to mean revenue growth may be slower in the coming years than expected. This was not our interpretation of these comments.

In fact, the recent re-acceleration of subscriber growth, plus price increases on premium memberships and a stabilization of content investments, should position the company for low double digit annual revenue growth over the next few years while driving improved operating margin to more than 25% (revenue grew 3% for 2Q23 and operating margin was 22.3%, up from 13% in 2019). We also believe that the stabilization of content spend should allow the company to continue to scale its FCF.”