Strong Dollar is Crushing These 5 Stocks

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In this article, we discuss 5 stocks that the strong dollar is crushing. If you want to see more stocks in this selection, check out Strong Dollar is Crushing These 10 Stocks

5. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 109

Netflix, Inc. (NASDAQ:NFLX) reported its Q2 2022 results on July 19, posting GAAP earnings per share of $3.20, beating market consensus estimates by $0.26. The revenue of $7.97 billion jumped 8.6% year over year, but missed Wall Street estimates by $60 million. The company lost almost 1 million paid subscribers in Q2, compared to the 2 million guidance. In its Q3 2022 outlook, Netflix, Inc. (NASDAQ:NFLX) expects a revenue of $7.84 billion compared to an $8.10 billion consensus, and an EPS of $2.14 versus a market estimate of $2.76. Netflix CFO Spencer Neumann on July 20 informed investors that a strong dollar resulted in their Q2 revenue growth coming in below the 9.7% forecast. 

On July 20, ​​Wells Fargo analyst Steven Cahall observed that Netflix, Inc. (NASDAQ:NFLX) has reached a bottom, assuming subscriber growth does not meet any new lows. In 2023, latest initiatives will start to contribute, and it is rational to expect that Netflix, Inc. (NASDAQ:NFLX) in 2024 and beyond will have very strong top and bottom-line growth, in addition to improved free cash flow. The analyst maintained an Equal Weight rating and a price target of $300 on the shares.

According to Insider Monkey’s data, Netflix, Inc. (NASDAQ:NFLX) was part of 109 hedge fund portfolios at the end of Q1 2022, compared to 113 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company, with 6.35 million shares worth $2.3 billion. 

Here is what Oakmark Fund has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q2 2022 investor letter:

“Netflix‘s stock price was down considerably after providing a weaker than expected outlook for both subscriber growth and profit margins. After meeting with management and scrutinizing our investment thesis, we lowered our estimate of business value to account for the company’s softer near-term guidance. However, we believe the decline in the company’s share price more than adjusts for this. Indeed, Netflix now trades for a discount to the S&P 500 Index on next year’s GAAP earnings despite our view that the company remains a much better than average business run by a highly accomplished management team. We believe the company’s lead in streaming remains intact and we expect terminal operating margins to be substantially higher than they are today. Furthermore, we are encouraged by Netflix’s potential to enhance revenue growth through advertising, the monetization of password sharing and further penetrating international markets.”

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