Investor Confidence in Continued Growth Boosted Netflix (NFLX) in Q2

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The U.S. equity market regained its strength in the second quarter, following initial volatility, with the S&P 500 Index rising 10.94%. The Bloomberg U.S. Aggregate Bond Index also surged 1.21% during the quarter. Aristotle Atlantic’s Focus Growth strategy returned 17.70% gross of fees (17.67% net of fees) in the quarter, underperforming the Russell 1000 Growth Index’s 17.84% total return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Aristotle Atlantic Focus Growth Strategy highlighted stocks such as Netflix, Inc. (NASDAQ:NFLX). Incorporated in 1997, Netflix, Inc. (NASDAQ:NFLX) is a streaming platform. The one-month return of Netflix, Inc. (NASDAQ:NFLX) was -3.58%, and its shares gained 91.87% of their value over the last 52 weeks. On July 21, 2025, Netflix, Inc. (NASDAQ:NFLX) stock closed at $1,233.27 per share, with a market capitalization of $524.049 billion.

Aristotle Atlantic Focus Growth Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its second quarter 2025 investor letter:

"Netflix, Inc. (NASDAQ:NFLX) contributed to relative performance in the second quarter, primarily due to first quarter earnings results that supported investor confidence in continued growth. In particular, additional price increases in select markets, healthy subscriber momentum and progress in the nascent ad-supported subscription tier also helped drive performance. The company reiterated its full-year targets, with no signs of weakness in domestic or international markets."

Netflix, Inc. (NASDAQ:NFLX) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 150 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the first quarter, compared to 144 in the fourth 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 stocks to buy and sell in 2025 according to top analyst calls. In addition, please check out our hedge fund investor letters Q2 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.