Do You Believe in Netflix’s (NFLX) Diversified Growth Drivers?

NFLX -2.40%

Loomis Sayles, an investment management company, released its “Global Growth Fund” investor letter for the third quarter of 2025.  A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.59% compared to 7.62% for the MSCI ACWI Index Net. The firm seeks to invest in high-quality businesses that possess sustainable competitive advantages and experience profitable growth, especially when these companies are trading at a substantial discount to their intrinsic value. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Loomis Sayles Global Growth Fund highlighted stocks such as Netflix, Inc. (NASDAQ:NFLX). Incorporated in 1997, Netflix, Inc. (NASDAQ:NFLX) is an entertainment services provider. The one-month return of Netflix, Inc. (NASDAQ:NFLX) was -4.70%, and its shares gained 20.51% of their value over the last 52 weeks. On November 21, 2025, Netflix, Inc. (NASDAQ:NFLX) stock closed at $104.31 per share, with a market capitalization of $441.995 billion.

Loomis Sayles Global Growth Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its third quarter 2025 investor letter:

“Founded in 1997, Netflix, Inc. (NASDAQ:NFLX) is one of the world’s leading internet entertainment platforms and a pioneer of subscription video on demand (SVOD), which it first launched in 2007. Today the company is a global leader with over 300 million paid subscribers, out of what we estimate is a total addressable market of one billion households outside of China, who access TV series, movies, mobile games, and other entertainment content across a wide variety of genres, languages, and devices. The company has subscribers in over 190 countries, with an estimated global audience in excess of 700 million, and generates almost 60% of its revenue from outside of North America.

Netflix, Inc. (NASDAQ:NFLX) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 133 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the second quarter, compared to 150 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 the list of best communication and media stocks to buy. In its Q3 2025, investor letter, RiverPark Large Growth Fund shared that Netflix, Inc. (NASDAQ:NFLX) is well positioned to deliver double -digit earnings growth. In addition, please check out our hedge fund investor letters Q3 2025 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.