Should You Be Confident in Netflix (NFLX)?
Magellan Investment Partners, an Australian investment management company, released its second-quarter 2026 investor letter for "Magellan Global Opportunities Fund". A copy of the letter can be downloaded here. The Fund invests in companies with sustainable competitive advantages that generate returns exceeding their cost of capital over time. In Q2, the global stock market rose 13.8%, reversing the stagflation narrative, with energy prices declining after US–Iran tensions eased. Focus shifted to chip stocks and data centre beneficiaries. Regionally, markets' performance reflected the tech rebound and energy decline. Macro backdrop improved in the quarter with relief from avoiding a severe energy shock, though growth and inflation concerns kept central banks cautious. The portfolio gained 4.3% in the quarter, lagging the 12.5% benchmark rise, driven by bubble-like conditions in semiconductors and data centre supply chains. For insights into their key selections for 2026, please review the Strategy's top five holdings.
In its Q2 2026 investor letter, Magellan Global Opportunities Fund highlighted Netflix, Inc. (NASDAQ:NFLX). Netflix, Inc. (NASDAQ:NFLX) is a leading subscription-based streaming entertainment platform. On July 15, 2026, Netflix, Inc. (NASDAQ:NFLX) closed at $73.68 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was -4.78%, and its shares lost 42.17% over the past 52 weeks. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $310.25 billion.
Magellan Global Opportunities Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q2 2026 investor update:
"Key detractors included Intuit, Netflix, Inc. (NASDAQ:NFLX) and Intercontinental Exchange (ICE). Netflix has given up a lot of the gains following its rally after walking away from its bid for Warner Bros Discovery. This was driven by a combination of a more positive macro outlook and higher interest rates (Netflix is viewed as defensive) and limited near-term engagement growth in the US. We view the latter as largely a short-term issue driven by a strong sporting calendar and growth in engagement of short video due to improvements in algorithms. We continue to view Netflix as well-placed to maintain its position as the dominant streaming platform for professional content and grow profits strongly over the medium term."
Netflix, Inc. (NASDAQ:NFLX) ranks 13th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 144 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the first quarter, compared to 146 in the previous quarter. While we acknowledge the potential of Netflix, Inc. (NASDAQ:NFLX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Netflix, Inc. (NASDAQ:NFLX) and shared Mar Vista U.S. Quality Strategy's views on the company. In addition, please check out our hedge fund investor letters Q2 2026 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.