Should You Include Netflix (NFLX) to Your Portfolio?

Ensemble Capital Management, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy outperformed its benchmark, the S&P 500, after three consecutive quarters. The strategy declined 2.6% compared to a 4.9% decline for the S&P 500 Index in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Ensemble Capital discussed stocks like Netflix, Inc. (NASDAQ:NFLX) in the Q3 2022 investor letter. Headquartered in Los Gatos, California, Netflix, Inc. (NASDAQ:NFLX) is an entertainment services company. On October 17, 2022, Netflix, Inc. (NASDAQ:NFLX) stock closed at $245.10 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was 0.93% and its shares lost 61.64% of their value over the last 52 weeks. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $108.997 billion.

Here is what Ensemble Capital specifically said about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2022 investor letter:

Netflix, Inc. (NASDAQ:NFLX) (+34.6%): After a punishing first half of the year when bearish investors came to believe that Netflix’s growth days were done for good, the company reported fewer subscriber losses than expected in the second quarter and guided for a return to at least modest subscriber growth in the third quarter. In addition, as more information about the company’s planned advertising supported subscription tier has become available, investors began to express growing confidence in this tool to revitalize growth in 2023.”

Netflix, Inc. (NASDAQ:NFLX) is in 19th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 95 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX)  at the end of the second quarter, which was 109 in the previous quarter.

We discussed Netflix, Inc. (NASDAQ:NFLX) in another article and shared Oakmark Funds’ views on the company. In addition, please check out our hedge fund investor letters Q3 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.