Netflix (NFLX) Shares Pulled Back Despite Solid Results

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -0.88% (net) during the third quarter, underperforming the benchmark, the Russell 1000 Growth Index. Even though the portfolio has significant exposure to AI, its underweight to the most speculative momentum-driven parts of the trade was a headwind to performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy 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 -0.45%, and its shares gained 20.03% of their value over the last 52 weeks. On December 02, 2025, Netflix, Inc. (NASDAQ:NFLX) stock closed at $109.35 per share, with a market capitalization of $463.35 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its third quarter 2025 investor letter:

“Netflix, Inc. (NASDAQ:NFLX) saw its stock pull back during the quarter, despite delivering solid results and raising full-year guidance. Subscriber growth was strong across regions, and content spending remained efficient, supporting long-term margin expansion. While shares finished the second quarter near all-time highs, recent headlines—including a proposed Warner-Paramount merger and early discussions around tariffs on non-U.S. films—may have contributed to near-term investor caution. We continue to view Netflix as a best-in-class operator with meaningful long-term upside.”

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

Netflix, Inc. (NASDAQ:NFLX) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 154 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the third quarter, up from 133 in the previous 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 Sands Capital Select Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.