Netflix's (NFLX) Results Exceeded Expectations Amid Macroeconomic Challenges

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Brown Advisory Large-Cap Growth strategy has shown resilience this year amid heightened volatility, protecting investor capital during market declines and participating in the strong rebound since early April. The strategy returned 16% during the second quarter, slightly underperforming the benchmark, the Russell 1000® Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy 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 1.98%, and its shares gained 85.49% of their value over the last 52 weeks. On September 08, 2025, Netflix, Inc. (NASDAQ:NFLX) stock closed at $1,244.76 per share, with a market capitalization of $528.931 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its second quarter 2025 investor letter:

"From a sector perspective, Communication Services was the largest positive contributor to relative performance during the quarter, driven by strong results from Netflix, Inc. (NASDAQ:NFLX) and The Trade Desk (TTD). Netflix, a leading streaming service with more than 300 million global subscribers, reported results that exceeded consensus expectations, maintained fiscal year guidance, and executed a record $3.5 billion buyback. Despite macroeconomic headwinds, subscription growth in key markets and increased advertising revenue drove the increase to guidance, reinforcing Netflix’s strong market position and content strategy. Management remains confident in continued growth, supported by a compelling lineup of content for the second half of the year."

Netflix, Inc. (NASDAQ:NFLX) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 133 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the second quarter, which was 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 stocks Jim Cramer recently discussed. 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.