Nasdaq NFLX NetFlix

The S&P 500 and Nasdaq edged higher on Wednesday as gains in tech giants Apple and Microsoft offset worries over the Federal Reserve's aggressive interest rate hikes slowing the U.S. economy.

Wall Street indexes fell on Wednesday, pressured by a report the U.S. could curb sales of artificial intelligence (AI) chips to China, while Federal Reserve Chair Jerome Powell stuck to a hawkish tone that investors were largely anticipating.

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE), a passively managed exchange traded fund launched on 03/21/2012.

Before Hollywood writers walked off the job in early May, Pam Elyea's prop house History for Hire filled an average of 53 requests per week for everything from period-appropriate cameras and luggage to camping gear and snow globes.

For much of the past 15 years, it seemed the growth of streaming video was unstoppable. Even after the pandemic-induced streaming boom, many of the major streaming platforms continued to generate growth -- albeit at a slower pace.

For Immediate ReleaseChicago, IL – June 28, 2023 – Today, Zacks Equity Research discusses Netflix NFLX, Roku ROKU and Nexstar Media NXST.

Nearly halfway through 2023, a relatively unheralded ETF with under $1 billion in assets under management is the best-performing actively-managed diversified ETF this year. It’s the Fidelity Blue Chip Growth ETF ( BATS:FBCG) , and it’s up a scintillating 38.9% year to date. Here’s a look at why this ETF is on a tear, how it invests, and whether it could be a good addition to investors' portfolios.    Actively vs. Passively-Managed Funds Before delving into the specifics of FBCG itself, let’s briefly touch on what actively managed means and the difference between actively-managed and passively-managed funds. Nowadays, many of the market’s most-popular ETFs are passively managed, meaning that they simply track a specific index with the goal of replicating its performance before fees and expenses. Proponents say that index funds remove the room for human error.  Conversely, in an actively-managed fund, a portfolio manager or several managers actively make investment decisions in an effort to outperform a specific benchmark and generate superior returns. Actively-managed funds generally have higher turnover and more trading and are typically more expensive (in terms of fees) than passively-managed funds or index funds.  Nonetheless, index funds have grown in popularity in recent years, as research has consistently shown that most active managers fail to beat their benchmark over the long term.     What Does the FBCG ETF Do? Now that we've reviewed active versus passive, let's focus on actively-managed FBCG. With $632.6 million in assets under management (AUM), FBCG doesn’t get quite the same love from investors as some of the more popular large-cap growth ETFs out there. However, part of the reason for this is that it’s relatively new -- the ETF only launched in 2020. It normally invests at least 80% of its assets in blue-chip companies, which Fidelity Management & Research says are “well-known, well-established, and well-capitalized” companies. Fidelity says that the companies FBCG invests in typically have medium or large market caps, and they believe that they exhibit “above-average growth potential.” Now that we know FBCG’s strategy and what it looks for in investments, what does it look like in practice?  FBCG's Blue-Chip Portfolio FBCG holds 162 positions, and its top 10 holdings account for 55.4% of assets.   With a focus on blue-chip, medium- and large-cap growth stocks, it’s no surprise that FBCG’s top positions are dominated by large-cap tech stocks. Much has been made about the broader market’s gains in 2023, coming largely from the "magnificent seven" -- Apple ( NASDAQ:AAPL ), Microsoft ( NASDAQ:MSFT ), Nvidia ( NASDAQ:NVDA ), Amazon ( NASDAQ:AMZN ), Alphabet ( NASDAQ:GOOGL ), Meta Platforms ( NASDAQ:META ), and Tesla ( NASDAQ:TSLA ). These seven stocks are also FBCG’s top seven holdings, which explains why the ETF has had such a strong performance this year. Outside of the "magnificent seven," three more tech-oriented stocks, Marvell Technologies ( NASDAQ:MRVL ), Uber ( NYSE:UBER ), and Netflix ( NASDAQ:NFLX ), round out FBCG’s top holdings.  Take a look at the table below from TipRank’s holdings tool for an overview of FBCG’s top 10 holdings. While FBCG is tech-heavy, it isn’t limited to tech stocks. Just outside the top 10, you’ll find stocks like UnitedHealth Group ( NYSE:UNH ), Lowe’s ( NYSE:LOW ), Eli Lilly ( NYSE:LLY ), Nike ( NYSE:NKE ), and Mastercard ( NYSE:MA ). Energy drink company Celsius Holdings ( NASDAQ:CELH ), which is up 136% over the past year, is also among FBCG’s holdings, so the managers are finding some strong performers beyond the "usual suspects."   In terms of sector allocations, information technology is by far the largest sector that the fund invests in, with a 40.9% weighting (as of the end of Q1). After that, consumer discretionary accounts for a 22.9% weighting, and communications services accounts for a 13.9% weighting. All other sectors have a single-digit weighting.  Is FBCG Stock a Buy, According to Wall Street's Top Analysts? Turning to the opinions of Wall Street's best-performing analysts (measured by TipRanks), FBCG has a Moderate Buy consensus rating, as 70.1% of analyst ratings are Buys, 27.2% are Holds, and 2.7% are Sells. At $32.17, the average FBCG stock price target implies 9.8% upside potential.  Paying the Price for Active Management One downside to FBCG is that it has relatively high fees, with an expense ratio of 0.59%. This means that an investor putting $10,000 into FBCG will pay $59 in fees in year one. Over the course of a 10-year investment, assuming the expense ratio remains the same and that the fund gains 5% a year, this investor will pay $738 in fees.  In fairness to FBCG, this is an actively-managed fund, which is more expensive to run than a passive index fund, but this is still something investors need to keep in mind, as these fees add up over time.  Investor Takeaway With large-cap tech stocks having a huge year, FBCG is in the driver’s seat, and the fund has made hay while the sun is shining with a red-hot gain of nearly 40% year-to-date. The fund has a high-quality portfolio of blue-chip stocks and a solid outlook from analysts, so there’s a lot to like here.  On the other hand, the fairly new fund hasn’t yet established much of a long-term track record, so it remains to be seen how it performs over a longer time frame. Additionally, its high fees are something that investors need to consider when investing.  Alternatively, investors who want to invest in these same types of stocks have plenty of other options that have longer track records and lower fees, such as the Invesco QQQ Trust ETF ( NASDAQ:QQQ) or the Schwab U.S. Large Cap Growth ETF ( NYSEARCA:SCHG) .  The top 10 holdings of QQQ and SCHG have plenty of overlap with FBCG’s top 10, as all three funds hold the "magnificent seven" within their top 10 holdings, and both QQQ and SCHG are up nicely year-to-date, with total returns of 37.9% and 33.5%, respectively. QQQ’s expense ratio of 0.2% and SCHG’s expense ratio of 0.04% are considerably lower than that of FBCG. An investor in QQQ would pay $255 in fees over a 10-year time frame, while an investor in SCHG would pay just $51 (assuming 5% annual returns).  This isn’t to say that there's anything wrong with a more expensive, actively-managed ETF, especially one that is performing as well as FBCG. Investors interested in this style of portfolio should certainly kick the tires on it. This ETF looks like a decent choice for investors who are interested in something actively-managed or want to simply invest in blue-chip, large-cap growth stocks and are okay with the higher expense ratio and shorter track record. Disclosure  

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Xponential Fitness Inc (Symbol: XPOF), where a total volume of 13,742 contracts has been traded thus far today, a contract volume which is representative of app

Despite experiencing a decline in share value due to slowing growth and increased competition from traditional media giants, Netflix NFLX has emerged as one of the most unexpected winners this year. According to the Motley Fool, i

The Zacks Broadcast Radio and Television industry has been suffering from increased cord-cutting amid a spurt in demand for streaming content. However, industry participants like Netflix NFLX, Roku ROKU, and Nexstar Media NXST are

Remember when the biggest controversy facing Peloton Interactive Inc. (NASDAQ: PTON) was a holiday commercial? Those were good times for the company. As fate would have it, people asked for Peloton workout equipment in their homes a few months removed from that commercial's debu

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

One of the best ways to figure out what works in the stock market is to study the companies that have delivered the best long-term performance. But we'll save you the heavy lifting. In this video, I sit down with Tyler Crowe to discuss some of the common attributes of the best-pe

Netflix (NASDAQ: NFLX) and Roku (NASDAQ: ROKU) are considered among the streaming industry leaders, but there are important differences between the two companies. The former offers a library of content, while the latter offers media players that support various streaming channels

Concentrated Leadership?

Current reports are that Warner Brothers Discovery (NASDAQ: WBD) may be licensing some content to Netflix (NASDAQ: NFLX), a move that once seemed unfathomable. In this video, Travis Hoium covers why this could be a great move for both companies.

Netflix ( NASDAQ:NFLX ) stock has really heated up alongside its FAANG peers in recent quarters, thanks to renewed optimism for next-gen tech firms. Undoubtedly, it's been a painful fall from grace for the streaming giant, as concern surrounded the sustainability of its growth rates going into a potential recession. Getting freeloaders to pay up and the inclusion of ads in a lower-cost tier have been just some of the levers that Netflix's managers have pulled the steady the ship amid harsher economic waters. It was tough to give Netflix the benefit of the doubt when it reached multi-year depths late last year. However, those who did have been rewarded with some very handsome gains, and the gains from NFLX stock's current rally may not be over yet. Even with the legendary Reed Hastings foregoing his CEO title, I still believe the streamer has a lot to prove. Being a FAANG stock entails growth, and Netflix will need to do a lot more if it's to keep growth going strong as the streaming and media industry begin to mature. Industry maturity and tougher rivals are never a good formula for earnings growth. Regardless, Netflix still has quality by its side and several potential pathways it could pursue to remain the king of streaming content. I am bullish on the stock. The Netflix of the Future May Make Good Use of AI Technologies The AI boom has been difficult to ignore. Undoubtedly, tech companies with AI exposure have surged, even in the face of economic and rate-related headwinds. Netflix may not be an AI company, but it's one that could have a lot to benefit as AI works its way into the streaming and content production scene. The company already has impressive algorithms that tailor content to specific viewers. Moving forward, we could see AI help assist in various areas of content production. Netflix Japan has already reportedly incorporated AI in the background of an animated short film. I must say it's pretty impressive. Although some content creators may feel that AI is after their jobs, I do believe that AI will never be able to completely replace the creativity of humans. Editing, writing, and all the sort are still valuable skills that AI is unlikely to replace fully. If anything, AI could help make the jobs of creators easier and better. In any case, it's hard not to notice the backlash from writers at WGA (Writers Guild of America), who fear AI could eat away at employment prospects. It's a huge concern if regulations to protect human jobs are not put in place promptly. Fortunately, I do believe the writer strike will get the message across, both to industry top dogs and federal regulators. Moving forward, it's difficult to gauge how much Netflix will use AI when comes to content production. If it does decide to replace human creators, we'll be entering uncharted territory. The billion-dollar question is whether quality will be comprised. Netflix Needs to Get AI Right and Avoid Becoming Like Streamberry! Netflix's latest season of the hit show Black Mirror had an episode named " Joan is Awful" that was a startling take on what streamers could be in for in the AI deep-fake age. In the episode, a streaming platform named Streamberry gave us a glimpse of what could go wrong as streaming platforms embrace next-generation technologies like AI deep fakes and quantum computing to make viewers the "star of the show!" I won't spoil the episode, but I believe it's a given that Netflix likely doesn't want to go down the same path as Streamberry. Just because a technology can offer a unique experience for a lower cost doesn't mean ethical boundaries won't be crossed. Fortunately, I do believe Netflix can find ground where it can incorporate next-generation AI technologies to enhance the experience while minimizing harm. AI is a very powerful but potentially dangerous technology if left unchecked. In any case, Netflix is a pioneer when it comes to next-generation entertainment experiences. As we move into the AI, AR, or VR age, look for Netflix's technological capabilities to help it take streaming to the next level. Is Netflix Stock a Buy, According to Analysts? Turning to Wall Street, NFLX stock comes in as a Moderate Buy. Out of 35 analyst ratings, there are 19 Buys, 13 Holds, and three Sell recommendations. The  average Netflix stock price target is $401.42, implying downside potential of 4.1%. Analyst price targets range from a low of $230.00 per share to a high of $535.00 per share. The Bottom Line on Netflix: It's Still a Tech-Savvy Growth Stock What will Netflix's growth rates look like in the future? It's hard to tell at this juncture. Regardless, I believe the firm can grow into its 45.5 times trailing price-to-earnings multiple with the help of some cutting-edge tech. Disclosure 

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

The stock market has been full of surprises this year, including the emergence of artificial intelligence as a key narrative, the resilience of the U.S. economy, and the boom in big tech stocks.