Netflix (NFLX) Surged as Multiple Tailwinds Align

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets surged in the second quarter, with the S&P 500 Total Return Index rising 10.94% and the Russell 1000 Growth Index returning 17.84%. The fund also surged in the quarter and returned 15.01%. Continued enthusiasm for artificial intelligence, better-than-expected earnings in several large-cap growth sectors, and improving macroeconomic conditions lifted the markets in the quarter. Growth-focused stocks took the lead once more, with the strongest performance coming from sectors like technology, communication services, and certain areas of consumer discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, RiverPark Large Growth Fund 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 -10.68%, and its shares gained 88.81% of their value over the last 52 weeks. On August 1, 2025, Netflix, Inc. (NASDAQ:NFLX) stock closed at $1,158.60 per share, with a market capitalization of $492.319 billion.

RiverPark Large Growth Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its second quarter 2025 investor letter:

“Netflix, Inc. (NASDAQ:NFLX): NFLX posted strong gains during the quarter, driven by healthy subscriber growth and accelerating contributions from its ad-supported tier. The company reported solid revenue growth and better-than-expected profitability, with operating margins continuing to trend toward the high-20s. Netflix added 32 million gross subscribers globally in the first half of the year, and its ad-tier reached over 90 million users. Momentum in live programming and sports helped expand engagement across markets.

Strategically, Netflix continues to improve its monetization model by broadening its content mix, expanding into live events, and growing its advertising revenue. Management guided to improving free cash flow and stronger operating leverage going forward. Investors responded positively to the platform’s ability to balance global growth, pricing power, and improved content efficiency.

We believe Netflix remains one of the most compelling platforms in digital media. Its global subscriber base, expanding margins, and disciplined content spending create a powerful engine for earnings growth. With growing scale in advertising and an expanding brand portfolio, Netflix continues to represent a high-quality growth opportunity.”

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

A home theater with family members enjoying streaming content together.

Netflix, Inc. (NASDAQ:NFLX) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 150 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the first quarter, compared to 144 in the fourth 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 the list of stocks Jim Cramer recently talked about. In addition, please check out our hedge fund investor letters Q2 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.