We recently published a list of Top 12 Tech Stocks to Buy According to Billionaire Ken Fisher. In this article, we are going to take a look at where Netflix, Inc. (NASDAQ:NFLX) stands against other top tech stocks to buy according to Billionaire Ken Fisher.
Under the umbrella of Fisher Asset Management, Billionaire Ken Fisher has maintained a positive stance on technology stocks, particularly those within the “Magnificent Seven.” While emphasizing the strong performance of these large-cap growth companies, Fisher emphasizes that the ongoing bull market extends beyond just these high-profile names. According to him, the 2024 rally has been broader than it is generally perceived, with growth stocks, especially in tech and communication services, consistently outperforming their value and small-cap counterparts.
Ken Fisher’s discussion revealed a notable trend: tech stocks have tended to outperform during market upswings and underperform during downturns. This pattern, evident throughout the statistics of 2024, strengthens the theory that if investors believe in a continuing bull market, technology stocks will likely remain strong performers. Although they may not always lead the market consistently or across every metric, according to historical evidence, their overall performance consistently outshines most other sectors and groupings.
Fisher’s perspective suggested that while technology stocks may not dominate the market indefinitely, their performance still serves as a bellwether for broader market sentiment. He stated that investing in these companies is not about expecting perfection but recognizing that in bullish environments, they tend to deliver higher returns. At the same time, he warned against focusing too narrowly on these names, as the broader growth category spanning across sectors is also poised to benefit from favorable market conditions.
In summary, Fisher Asset Management’s investment approach shows confidence in the long-term prospects of technology stocks. Though Ken Fisher concedes there are no certainties in the market, he points to a clear directional relationship: when the market rises, these stocks tend to rise more; when it falls, they decline more. For Fisher, this reinforces the strategic value of maintaining strong exposure to tech-driven growth stocks in a bullish environment.
Our Methodology
We searched through Fisher Asset Management’s Q4 2024 13F filings to identify the top tech stocks that the firm is invested in. From the resultant data, we ranked the technology equities based on his hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders as of Q4: 144
Fisher Asset Management’s Equity Stake: $4.04 Billion
Netflix, Inc. (NASDAQ:NFLX), a streaming media company, delivered a record performance in the fourth quarter of 2024, reporting a 16% year-over-year revenue increase to $10.25 billion and a doubling of earnings per share to $4.27. The company added 18.91 million new subscribers during the quarter, expanding its global user base to 301.63 million. Netflix continues to benefit from its expansive content library and effective pricing strategies, and the company forecasts an additional 13% increase in revenue for 2025. Over the past decade, the company’s revenue has grown by an impressive 609%, and its market capitalization now exceeds $400 billion, reinforcing its position as a top tech stock to buy, especially as a long-term investment.
Immediately following its strong Q4 results, investor sentiment toward Netflix, Inc. (NASDAQ:NFLX) surged. Leading financial institutions reaffirmed their confidence, with J.P. Morgan maintaining a price target of $1,150 and Bernstein setting an even more bullish target of $1,200. Netflix’s disciplined cost management, including efforts to curb password sharing among users and invest selectively in high-performing content, contributed to an improvement in operating margins from 21% in 2023 to 27% in 2024. The company also reported a free cash flow of $6.9 billion for the year, with projections indicating this figure could rise to $8 billion in 2025. Netflix, Inc. (NASDAQ:NFLX)’s ability to grow its global subscriber base, maintain tight financial controls, and remain agile with content investment has positioned it for continued success amid intense competition in the streaming sector.
Institutional interest in Netflix, Inc. (NASDAQ:NFLX) has also grown substantially. According to Insider Monkey’s database, 144 hedge funds held positions in the company at the end of Q4 2024, up from 121 in Q3. The combined value of these holdings reached nearly $19.61 billion, reflecting increasing confidence among major investors in Netflix’s strategic direction and financial strength. With a powerful brand, expanding global presence, and strong financials, Netflix remains one of the most attractive assets in the entertainment and technology investment landscape.
Overall, NFLX ranks 9th on our list of top tech stocks to buy according to Billionaire Ken Fisher. While we acknowledge the potential of tech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NFLX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.