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Netflix among Top Billionaire Picks on NASDAQ
Netflix, Inc. (NASDAQ: NFLX) has returned to the limelight—not only as a streaming audience favorite, but also amongst billionaire investors. As part of our extensive consideration of the best NASDAQ stocks to purchase in the eyes of billionaires, Netflix stands tall on the strength of fundamentals, persistent subscriber growth, and resistance against turbulent markets.
Based on Insider Monkey’s data of billionaire holdings, 25 billionaires are invested in Netflix as of now, making it a top NASDAQ stock among billionaires. With institutional demand and support from hedge funds, Netflix is a good bet for long-term investors.
U.S. Economy Contracts Amid Tariff Jitters
As Netflix’s business keeps expanding, more general market conditions are uncertain. The U.S. economy declined by 0.3% in Q1 2025, rebounding sharply from the 2.4% growth in Q4 2024. Economists blame most of this deceleration on increasing tariff uncertainty, particularly since net exports fell 4.8%.
According to CNBC, imports rose 41% in the fourth quarter of 2024 as businesses rushed ahead of the supposed tariffs. Because of this, the NASDAQ was hit on May 1, falling 0.09% to close at 17,446.34.
Trump’s 100% Tariff Threat Roils Media Stocks
Spurring the market’s anxiety was a recent post on Truth Social by former President Donald Trump, who stated a 100% tariff on foreign-made films. Citing national security and foreign control over American culture, Trump directed the Department of Commerce to begin imposing the new trade directive effective immediately.
The news took the entertainment market by surprise. On the subsequent trading day, It’s dropped by 5%, whereas other dominant players such as Walt Disney shed 2.5%, Paramount Global 1.2%, and Warner Bros. Discovery lost 2.3%. Even Comcast was affected, losing 0.5%.
Experts Weigh in on Tariff Impacts
Tom Lee, head of research at Funds rate, appeared on CNBC on April 30 to explain the wider implications of these policy shifts. He explained that the next three-quarters of economic statistics will be distorted because of the disruption tariffs cause. Lee contended that if this interruption is temporary, the stock market might already have bottomed, with the S&P 500 reaching a trough of 4,835 in April.
But if uncertainty lingers throughout the rest of 2025, the volatility could increase. CNBC’s Steve Lies man further suggested that this is exceeding “the President’s market” about Trump’s previous rally-boosting policies followed by sentiment-puncturing moves such as this recent tariff threat.
Prior to the recent upheaval, economists were forecasting 2% GDP growth per quarter for 2025. Following the contraction in Q1, expectations have been reduced to 1.6% for Q2, although some analysts think a rebound could occur if clarity is restored to trade policy.
Staying Invested Through the Storm
In spite of these difficulties, Tom Lee recommended that holding on during turbulent times can result in long-term profits. He stressed that attempting to time the market when there is economic uncertainty never succeeds and that investors need to look at fundamentally solid stocks—such as AI that can ride out the storm.
Our earlier analysis in “10 Best Growth Stocks to Buy According to Billionaires” is in consonance with this line of thought. The billionaires who are funding Netflix are doing so not out of hype, but because of the company’s consistent performance and flexibility.
Methodology Behind Billionaire Stock Picks
In order to find out which NASDAQ stocks are preferred by billionaires, we applied Finviz stock screener and Insider Monkey’s billionaire holdings database. We ranked NASDAQ-listed companies by market cap and then ranked them according to the number of billionaire investors who held stakes in them.
We also looked at overall billionaire investment value and overall hedge fund sentiment. This approach has proven to be sound, with our model portfolio yielding 373.4% since May 2014, much higher than market benchmarks.
Netflix’s Strong Fundamentals Attract Billionaires
Let’s take a closer look at why Netflix is such a billionaire favorite:
- Number of Hedge Funds Holding NFLX: 144
- Billionaire Investors: 25
- Total Billionaire Holdings: $12.7 billion+
As one of the largest and most globally recognized streaming platforms, Netflix operates in over 190 countries, offering content that spans movies, series, and documentaries. Billionaires are drawn to its scalable business model, predictable revenue streams, and growing ad-supported tier.
Wall Street Is Bullish on Netflix’s 2025 Outlook
In its latest update on April 22, DBS analyst Sachin Mittal held a “Buy” rating for Netflix and boosted his price target to $1,195. The reason behind the optimism is Netflix’s superb Q1 2025 performance.
Netflix disclosed:
13% year-over-year growth in revenue
27% increase in operating income
Guidance of $43.5–$44.5 billion in revenue for the full year
Targeted 29% operating margin
The performance topped analysts’ estimates and was largely propelled by subscription growth and rising advertising revenue.
Ad-Supported Tiers Fuel Subscriber Growth
Netflix’s comparatively recent ad-supported subscription plans have been a game-changer. They’ve been able to hook budget-conscious users while tapping into an entirely new revenue stream from advertisers.
In its Q4 2024 investor letter, Harding Loevner reported that the ad-supported tier reached 70 million subscribers, more than anticipated. The streaming behemoth also forayed into live sports, hosting NFL games over last Christmas, which indicated diversification that investors welcome.
Netflix Ranks 7th Among Billionaire Favorites
In our entire list of billionaire-backed NASDAQ stocks, Netflix is 7th, which makes it one of the best-performing media firms on the list. Even with market volatility and political uncertainty, Netflix’s fundamentals are solid.
However, we have to admit that certain AI stocks are gaining even greater interest from billionaire investors. One AI stock that has gone unnoticed since the beginning of 2025 is outpacing the larger AI names. If you want to diversify, be sure to read our article on the lowest-priced AI stock trading under 5x earnings.
Final Thoughts: Is Netflix Still a Buy?
The volatility of the current market might have shaken many investors, but the long-term picture for Netflix remains attractive. With robust billionaire support, increasing revenues, new ad models, and international expansion, Netflix remains a solid performer on the NASDAQ.
Tariffs and political uncertainty might lead to short-term plunges, but the fundamentals are sound. As ever, investors need to diversify their portfolios—but as far as streaming and entertainment are concerned, Netflix remains the crown jewel.
