Here’s How Netflix (NFLX) Rewarded Patient Investors

Group 1: Investment Performance - Rowan Street Capital's fund remained unchanged in Q3 2025, with a return of +0.22%, leading to a year-to-date return of +20.4% net of fees, outperforming the S&P 500's +14.8% [1] - Over the past three years, the firm's capital compounded at approximately +54.2% annually, resulting in a cumulative return of +266%, significantly exceeding the S&P 500's +24.9% annualized gain [1] Group 2: Netflix, Inc. (NASDAQ:NFLX) Overview - Netflix, Inc. has been part of Rowan Street Capital's portfolio for over five years, compounding at 23% annually [3] - The stock experienced a one-month return of -7.60% but gained 47.95% over the last 52 weeks, closing at $1,116.37 per share with a market capitalization of $474.375 billion on October 22, 2025 [2] Group 3: Netflix's Resilience and Growth Strategy - After a stock collapse in 2022 due to fears of saturation and competition, Netflix demonstrated resilience by reigniting growth through paid sharing, advertising, and improved content efficiency [3] - The company is recognized for its pricing power, global scale, and unrivaled content engine, which contributed to its recovery and growth [3] Group 4: Hedge Fund Interest in Netflix - Netflix ranks 14th among the 30 Most Popular Stocks Among Hedge Funds, with 133 hedge fund portfolios holding the stock at the end of Q2 2025, down from 150 in the previous quarter [4] - While Netflix is acknowledged as a potential investment, certain AI stocks are considered to offer greater upside potential and less downside risk [4]