In this article, we discuss 5 tech stocks that Tiger Cub Chase Coleman is selling. If you want to see more tech stocks discarded by the billionaire in Q1, check out Tiger Cub Chase Coleman is Selling These 10 Tech Stocks.
5. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 113
Netflix, Inc. (NASDAQ:NFLX) is an American entertainment company that offers TV series, documentaries, feature films, and mobile games to customers worldwide. Chase Coleman owned 1.08 million Netflix, Inc. (NASDAQ:NFLX) shares in the fourth quarter of 2021, which he sold off completely in the first quarter of 2022.
Wedbush analyst Michael Pachter on May 16 upgraded Netflix, Inc. (NASDAQ:NFLX) to Outperform from Neutral with a $280 price target as he sees the shares as a promising investment. The analyst thinks Netflix, Inc. (NASDAQ:NFLX) is positioned to outperform its guidance for Q2, mostly because of the staggered release of the TV series, Ozark. While it is possible that Netflix, Inc. (NASDAQ:NFLX) will once again issue a low guidance for Q3, the analyst believes the staggered release date for Stranger Things will reduce churn, and once again thinks that the company is positioned to grow. If the company sticks to its commitment to lowering churn by providing new content over the next weeks, investors will see a growth in subscribers and their confidence in Netflix, Inc. (NASDAQ:NFLX)’s business model will be reinstated.
In Q1 2022, Ken Fisher’s Fisher Asset Management was a significant shareholder of Netflix, Inc. (NASDAQ:NFLX), with 6.35 million shares worth $2.38 billion. Overall, in the fourth quarter of 2021, 113 hedge funds were long Netflix, Inc. (NASDAQ:NFLX), up from 106 funds in the earlier quarter.
Here is what ClearBridge Investments has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q1 2022 investor letter:
“After being a prime beneficiary of increased viewing patterns during the stay-at-home period of COVID-19, Netflix is recalibrating what a normal growth trajectory will look like as global economies fully reopen. The stock fell sharply after the company modestly reduced its net subscriber additions for the current quarter, calling into question its ability to continue to deliver double-digit subscriber growth.
We believe one of our edges as active managers is our long-term orientation and willingness to be both early and patient with additions to the portfolio. With Netflix, we remain convinced that our thesis for owning the stock is intact. While some fear the U.S. streaming market is becoming saturated, Netflix’s penetration of global broadband homes is still less than 50%, a figure that doesn’t even include the opportunity to attract more mobile-only smartphone users.”
