Do You Think Netflix (NFLX) is a Compelling Investment?

5 days ago 5

Soumya Eswaran

Tue, November 11, 2025 astatine 7:27 AM CST 3 min read

Fred Alger Management, an concern absorption company, released its “Alger Spectra Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. U.S. equity markets continued their upward trajectory successful the 3rd quarter, with the S&P 500 Index rising 8.12%. A operation of improving economical conditions, coagulated firm earnings, and increasing expectations for monetary easing drove the beardown performance. Against this backdrop, Class A shares of the Fund outperformed the Russell 3000 Growth Index during the 3rd 4th of 2025. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Alger Spectra Fund highlighted stocks specified arsenic Netflix, Inc. (NASDAQ:NFLX). Incorporated successful 1997, Netflix, Inc. (NASDAQ:NFLX) is an amusement services provider. The one-month instrumentality of Netflix, Inc. (NASDAQ:NFLX) was -7.84%, and its shares gained 36.68% of their worth implicit the past 52 weeks. On November 10, 2025, Netflix, Inc. (NASDAQ:NFLX) banal closed astatine $1,120.07 per share, with a marketplace capitalization of $474.61 billion.

Alger Spectra Fund stated the pursuing regarding Netflix, Inc. (NASDAQ:NFLX) successful its 3rd 4th 2025 capitalist letter:

"Netflix, Inc. (NASDAQ:NFLX) is simply a planetary person successful streaming entertainment, delivering premium video contented done a subscription-based level that present includes an advertising-supported tier and selective live-event programming. We find Netflix to beryllium a compelling concern for its quality to prolong beardown engagement astatine scale, its pricing power, and its enlargement into caller gross streams specified arsenic advertizing and unrecorded events. In our view, management’s accent connected accordant gross maturation and profitability, alternatively than header subscriber metrics, supports a much predictable fiscal profile. During the quarter, shares declined arsenic investors looked past beardown fiscal second-quarter results and focused connected afloat twelvemonth guidance and second-half profitability. Management’s full-year gross rise was attributed mostly to foreign-exchange tailwinds alternatively than stronger underlying demand, which disappointed expectations pursuing beardown year-to-date performance. Moreover, commentary astir higher contented and selling concern successful the 2nd fractional of 2025 tempered borderline expectations, adding to capitalist concerns. Despite these near-term headwinds, we judge Netflix remains good positioned owed to its planetary scale, advertizing initiatives, and selective enlargement into unrecorded programming."