NFLX

Guinness Global Innovators, an investment management company, recently released its Q2 2026 quarterly investor update for its “Guinness Global Innovators Fund”. You can download the letter here. The Guinness Global Innovators Fund focuses on investing in global companies that benefit from innovation in technology, communication, globalization, and management strategies. In the second quarter of 2026, the Guinness Global Innovators Fund returned 13.8% in GBP, compared with 13.0% for the MSCI World Index and 13.1% for the IA Global sector average. Easing Middle East tensions, falling oil prices, and renewed enthusiasm for artificial intelligence helped reverse much of the caution seen earlier in the year, with investors rotating back toward growth stocks and AI infrastructure beneficiaries. The Fund benefited from its overweight position in the Information Technology sector, while its overweight position in Communication Services detracted. Avoiding weaker Utilities, Materials, and Energy also supported relative performance. Also, please check the Fund’s top five holdings to see its best picks for 2026. In its second-quarter 2026 investor letter, Guinness Global Innovators Fund highlighted Netflix, Inc. (NASDAQ:NFLX) noting it was one of the weaker performers during the quarter. Netflix, Inc. (NASDAQ:NFLX) is a leading subscription-based streaming entertainment platform. On August 21, 2026, Netflix, Inc. (NASDAQ:NFLX) closed at $79.59 per share, reflecting a market capitalization of $331.41 billion. Netflix, Inc. (NASDAQ:NFLX) posted a one‑month return of 13.05%, while its shares lost 34.66% over the past 52 weeks. Guinness Global Innovators Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q2 2026 investor letter: Netflix, Inc. (NASDAQ:NFLX) ranks 13 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 144 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the first quarter, compared to 146 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. Our coverage of Netflix, Inc. (NASDAQ:NFLX) in another article included commentary from Pershing Square Holdings, another investment advisor. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer subscription industry, including Netflix (NASDAQ:NFLX) and its peers. Consumers today expect goods and services to be hyper-personalized and on demand. Whether it be what music they listen to, what movie they watch, or even finding a date, online consumer businesses are expected to delight their customers with simple user interfaces that magically fulfill demand. Subscription models have further increased usage and stickiness of many online consumer services. The 7 consumer subscription stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 2.4% below. While some consumer subscription stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.6% since the latest earnings results. Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform. Netflix reported revenues of $12.56 billion, up 13.4% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with EPS guidance for next quarter missing analysts’ expectations and full-year revenue guidance meeting analysts’ expectations. Netflix delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 7.7% since reporting and currently trades at $80.09. Is now the time to buy Netflix? Access our full analysis of the earnings results here, it’s free. With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services. Roku reported revenues of $1.35 billion, up 21.9% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and solid growth in its requests. The market seems content with the results as the stock is up 4.5% since reporting. It currently trades at $156.78. Is now the time to buy Roku? Access our full analysis of the earnings results here, it’s free. Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ:BMBL) is a leading dating app built with women at the center. Bumble reported revenues of $210.5 million, down 15.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a decline in its buyers and revenue guidance for next quarter missing analysts’ expectations significantly. As expected, the stock is down 7.6% since the results and currently trades at $2.81. Read our full analysis of Bumble’s results here. Started as a physical textbook rental service, Chegg (NYSE:CHGG) is now a digital platform addressing student pain points by providing study and academic assistance. Chegg reported revenues of $51.85 million, down 50.7% year on year. This print beat analysts’ expectations by 4.8%. Zooming out, it was a slower quarter as it logged revenue guidance for next quarter missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly. Chegg delivered the biggest analyst estimate beat but had the weakest guidance update and slowest revenue growth among its peers. The stock is down 25% since reporting and currently trades at $0.77. Read our full, actionable report on Chegg here, it’s free. Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ:DUOL) is a mobile app helping people learn new languages. Duolingo reported revenues of $298.5 million, up 18.3% year on year. This number surpassed analysts’ expectations by 0.9%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations. The stock is up 8.8% since reporting and currently trades at $147.18. Read our full, actionable report on Duolingo here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Netflix (NASDAQ: NFLX) stock is down 43% from its high, something that has happened only twice in the last 15 years. However, what may be more surprising is how this has affected the stock's valuation. Thanks to the pullback, Netflix trades at a forward earnings multiple of 21. The stock traded at a premium valuation for most of its history and had almost reached a forward P/E of 50 as recently as last fall. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » That may also lead investors to wonder what happened following previous pullbacks in Netflix stock, as knowing that could offer insight into when contrarian investors might want to take a chance on the communications stock. In 2011, Netflix stock lost more than three-fourths of its value as the company attempted to split up its streaming video and DVD-by-mail businesses. Also around that time, pay-TV network Starz pulled its content from the streaming service. These moves led to significant subscriber losses. Amid that chaos, Netflix's P/E ratio fell to as low as 14. The stock began recovering as massive growth in streaming hours validated the company's new emphasis on streaming. Also, a content deal with Disney, development of original content, and international expansion helped boost the stock. Those moves won over investor confidence, and that period of optimism about Netflix persisted until the pandemic-related lockdowns began to end in late 2021. Investors turned on the stock as the service's subscriber numbers fell due to people spending more time outside the home again. Also, intensifying competition from Disney+, Amazon Prime, Warner Bros. Discovery's HBO Max, and other streaming services had led investors to question Netflix's market leadership. This situation resulted in Netflix's P/E ratio falling to 15. At this point, Netflix regained investor confidence by cracking down on password-sharing and introducing a lower-priced ad-supported tier. These moves helped it bring sustainable profit growth, inspiring investors to bid up the share price. If history is any indication, a forward P/E ratio of 21 is probably not a bottom signal for Netflix stock. Admittedly, the company faces challenges that have created uncertainty about its path forward. Slowing revenue and subscriber growth, as well as the loss of the bidding war for Warner Bros. Discovery to Paramount Skydance, seemed to sour investors on the stock. Also, Alphabet's YouTube has become more of a competitive threat, and management's decision to stop publishing quarterly subscriber numbers makes it more likely that it is hiding challenges with subscriber growth. Investors also face uncertainties with the stock itself. It is unclear how Netflix will pivot to win back investor confidence. It is worth noting that Bill Ackman's Pershing Square just initiated a new position in Netflix in Q2, and certainly, the market offers no guarantees that the P/E ratio will fall all the way back to its historical lows. Also, if the company starts making decisions that bring back revenue and subscriber growth, Netflix stock may experience another dramatic recovery. Still, if you're taking your cues from history, now is probably not the time to buy. Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,040!* Now, it’s worth noting Stock Advisor’s total average return is 969% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 19, 2026. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Netflix, Walt Disney, and Warner Bros. Discovery. The Motley Fool has a disclosure policy. Netflix Trades at 21 Times Forward Earnings After Falling 43% From Its High. Here's How That Multiple Compares to Where the Stock Traded the Last 2 Times It Fell This Far. was originally published by The Motley Fool

Netflix's revenue growth is cooling, and the line that actually compounds for shareholders has been running far ahead of it. Netflix (NFLX) has lost about 35% of its value over the past year while the S&P 500 gained 21%, and revenue growth has cooled to 13.4% in the second quarter of 2026, the slowest of the last four quarters. The sales line, though, is not the main thing driving Netflix's per-share earnings. Earnings Per Share Compounded About 50% A Year Over Three Years Over the past three years per-share earnings compounded at about 50% a year, against 14.6% for revenue. Two levers opened that gap, and neither is the top line: an operating margin that traveled from 17.5% three years ago to 23.8% two years ago and 29.7% over the last twelve months, on $48.4 billion of revenue, and a shrinking share count. So the number a shareholder owns can keep compounding while the top line decelerates. Content Spending Is Growing More Slowly Than Revenue On Purpose That margin is a policy, not a windfall. For 2026, management forecasts content expense up about 10% against full-year guided revenue growth of 13% to 14%, or roughly 12% excluding currency, and says outright that it grows content spend slower than revenue. That 10% is above the 8% averaged over the past five years, and the gap doing the work here is only a few points wide. The mix inside the budget is where the trade-offs show. Live programming is set to take about 5% of the 2026 content budget and produce about 1% of viewing hours, and management's case for it is sign-ups rather than hours, since six of the ten biggest new-member sign-up days over the past five years came from live events. Cloud games and video podcasts are expanded gradually where management believes it can add more value for members, with the games investment still very small relative to overall content spend. Margin that comes from cost discipline is the sort of profitability trend the Trefis High Quality Portfolio looks for in its holdings. A $4.7 Billion Buyback Quarter, The Largest In Netflix's History Netflix repurchased $4.7 billion of stock in the second quarter of 2026, with about $27 billion of authorization still open. Over three years the share count is down about 5.6%, and buybacks have run ahead of stock-based compensation, so the reduction is real rather than a plug for dilution. Fewer shares against a faster-growing profit pool add a further, smaller push on top of the margin gains. At 24 Times Earnings, What Would Have To Go Wrong The case is not that growth is about to re-accelerate. That margin, 29.7% over the last twelve months, is up from only 29.5% a year earlier, so the compounding from here leans more on holding content growth below revenue and on the buyback than on fresh margin, and a content bill that outran revenue would end it. At 24 times earnings, toward the low end of a ten-year range running from 15.3 to 285, the price appears to give that profit line little credit, and sorting names that have fallen this far on what they still earn is what a dip-buying screen is built to do. Even A Compounding Engine Can Re-Rate Downward Netflix's three-year per-share compounding did not stop the stock from giving up about a third of its value over the past year, which is what a single position can do even when the business behind it is working. The Trefis High Quality Portfolio takes the other route, spreading that risk across a rules-based basket of quality names. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

This article first appeared on GuruFocus. Wallace Weitz (Trades, Portfolio), the seasoned portfolio manager behind the Weitz Value Fund, Weitz Hickory Fund, and Weitz Partners Value Fund, recently filed his 13F for the second quarter of 2026. Since founding his flagship fund in 1983, Weitz has refined a value investing approach that blends Benjamin Graham's price sensitivity and "margin of safety" with a focus on qualitative factors. He believes a company's ability to control its own destiny can be more important than statistical metrics like historical book value or reported earnings. This latest filing reveals a strategic reshuffling, most notably a complete exit from a long-time holding. Warning! GuruFocus has detected 12 Warning Signs with HPE. Is BRK.B fairly valued? Test your thesis with our free DCF calculator. Wallace Weitz (Trades, Portfolio) added a total of 3 new stocks to his portfolio during the quarter. The most significant addition was Netflix Inc (NASDAQ:NFLX), with 147,200 shares purchased, accounting for 0.73% of the portfolio and a total value of $105.1 million. The second largest new position was in Capital One Financial Corp (NYSE:COF), consisting of 40,000 shares, representing approximately 0.56% of the portfolio with a total value of $80.2 million. The third addition was Mettler-Toledo International Inc (NYSE:MTD), with 2,550 shares, accounting for 0.23% of the portfolio and a total value of $32.6 million. Weitz also increased stakes in a total of 10 existing holdings. The most notable increase was in Martin Marietta Materials Inc (NYSE:MLM), with an additional 7,595 shares, bringing the total to 47,370 shares. This adjustment represents a significant 19.09% increase in share count, a 0.3% impact on the current portfolio, and a total value of $273.2 million. The second largest increase was in Heico Corp (NYSE:HEI.A), with an additional 15,500 shares, bringing the total to 204,479 shares. This represents an 8.2% increase in share count and a total value of $527.4 million. Wallace Weitz (Trades, Portfolio) completely exited 2 holdings in the second quarter of 2026, a move that signals a clear shift in his investment thesis. The most impactful exit was Old Dominion Freight Line Inc (NASDAQ:ODFL), where he sold all 132,000 shares, resulting in a -1.8% impact on the portfolio. This decisive action suggests a reevaluation of the freight company's prospects. Additionally, he liquidated all 36,250 shares of CDW Corp (NASDAQ:CDW), causing a -0.31% impact on the portfolio. Weitz also reduced positions in 20 stocks, with the most significant changes reflecting a trimming of some of his largest tech and industrial holdings. He reduced Alphabet Inc (NASDAQ:GOOG) by 58,650 shares, resulting in a -17.95% decrease in shares and a -1.17% impact on the portfolio. The stock traded at an average price of $356.27 during the quarter and has returned -10.75% over the past 3 months and 9.25% year-to-date. He also reduced Texas Instruments Inc (NASDAQ:TXN) by 82,200 shares, resulting in a -51.34% reduction in shares and a -1.11% impact on the portfolio. The stock traded at an average price of $276.10 during the quarter and has returned -5.81% over the past 3 months and 62.11% year-to-date. At the end of the second quarter of 2026, Wallace Weitz (Trades, Portfolio)'s portfolio included 51 stocks. The top holdings were concentrated in a few key names: 9.41% in Berkshire Hathaway Inc (NYSE:BRK.B), 6.56% in Alphabet Inc (NASDAQ:GOOG), 6.46% in Danaher Corp (NYSE:DHR), 6.3% in Visa Inc (NYSE:V), and 5.17% in Mastercard Inc (NYSE:MA). The holdings are mainly concentrated in 8 of the 11 industries: Financial Services, Healthcare, Communication Services, Technology, Industrials, Basic Materials, Consumer Cyclical, and Real Estate. This diversification reflects Weitz's focus on high-quality businesses with durable competitive advantages across various sectors of the economy.

Free cash flow is negative while the cloud build runs, and that is the whole question for anyone weighing the stock today. Two Multiples, Two Opposite Answers Amazon.com (AMZN) trades at 22.6 times earnings against 23.9 for the S&P 500, the cheaper of the two on the line buyers check first, though that headline P/E is flattered by a wide gap between net income and operating income: LTM net income of $135.3 billion runs $41.6 billion above operating income, lifted by non-operating gains including Amazon's stake in Anthropic. Switch to cash, and the answer inverts: pricier at 18.7 times operating cash flow against 15.7 for the index, with free cash flow negative outright over the trailing twelve months. The Cloud Build Is Why Free Cash Flow Is Negative Management now expects about $220 billion of cash capital spending in 2026, up from an earlier estimate of roughly $200 billion because memory got more expensive. Most of it supports AI and AWS, and it splits two ways: data centers, which take about two years to open and then earn for 30-plus years, and servers and networking equipment, which the company says break even in a little under three years. Earnings already show the profit; the cash statement carries the bill. Buying the earnings multiple means buying that bill too. What Is Growing Underneath The Build AWS revenue grew 37% year over year in the quarter ended in June, a fifth straight quarter of acceleration, and the spending is being built against a $496 billion backlog. The retail side compounds differently: same-day perishables now run in 2,300 U.S. cities, which management credits with changing the trajectory of its everyday-essentials business. Company-wide revenue of $775.7 billion over the trailing twelve months has grown 13.0% a year over the past three years against 5.7% for the index, and that spread is what the cash-flow premium buys. The Bill Has Already Moved Once The estimate has moved up once already, and capacity is spoken for into 2028, so the heaviest years have no announced end. Under that build, the operating margin is 12.1% against 18.4% for the index: an above-market cash-flow multiple alongside a below-market operating line. Three Things That Would Settle The Question Free cash flow turning positive as data centers come online would take the cash side of the case off the table. AWS growth holding near its recent pace once new capacity lands would show demand is absorbing the build, not trailing it. A spending figure that stops rising would show the cost side is contained. Any of the three failing does the reverse, on a stock already sitting at the top of its 52-week range. That stock fell 40% in the 2022 inflation shock against 24% for the index. Weighing all of that in one place is what the five-factor scorecard read is for. What Would You Do With A Gain Like AMZN's 103%? Whichever way the call lands, the bigger question is how much of any single stock belongs in a portfolio at all. AMZN is up 103% over the past three years, well ahead of the S&P 500's roughly 76%, and gains like that are exactly how one holding quietly becomes too large a share of a portfolio. Whether that has happened in your portfolio is what the Trefis Wealth team checks, with the same rules-based systematic discipline that runs our High Quality Portfolio. Request a free vulnerability audit of your biggest positions.

Netflix (NASDAQ: NFLX) trades at $72.39 as of this writing, down about 43% from its 52-week high of $126.71. Along the way down, something notable happened to the stock's price tag: Shares finally look reasonably priced. The stock now costs about 20 times the earnings analysts expect from the company over the coming year. At last year's high, the same forward estimate would have priced the stock in the mid-30s. The rapid-growth premium, in short, is gone. The interesting question is what the stock is worth by 2029 if the business simply keeps doing what its own guidance describes. The arithmetic is worth walking through. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Netflix's second-quarter results, reported in mid-July, show a company still growing at a double-digit pace -- just a slower one. Revenue rose 13% year over year to $12.6 billion, in line with the company's forecast. But the trajectory is what the market is watching: growth of 16.2% in the first quarter became 13.4% in the second, and management's third-quarter forecast implies about 12%. That's a clear deceleration. For the full year, Netflix expects revenue of $51.0 billion to $51.4 billion, or 13% to 14% growth, along with an operating margin of 31.5%, up from 29.5% in 2025. That margin target implies operating income growth of more than 20% this year. Profits, in other words, are still compounding meaningfully faster than sales. Second-quarter operating income rose 11% year over year to $4.2 billion, and the company still expects about $12.5 billion of free cash flow for the year -- enough to support substantial share repurchases. Two other pieces matter for the next three years. The first is advertising. Management projects the streaming service's ads revenue will roughly double in 2026 to approximately $3 billion. That's only about 6% of total revenue, but it's a fast-growing 6%, and it gives Netflix another growth lever beyond subscription price increases. The second is share repurchases. Netflix bought back $4.7 billion of stock in the second quarter, its largest quarter ever, and it has $27.1 billion of authorization remaining. The company's balance sheet drama has also cleared. Its agreement to buy Warner Bros. Discovery's streaming and studios businesses, including HBO Max, was terminated in February, and Netflix collected a $2.8 billion termination fee for its trouble. Now the forward math, piece by piece, with round numbers. If revenue growth eases from about 13% this year to about 10% by 2029 (a continued glide, not a sharp break), revenue lands near $68 billion to $70 billion in 2029. Margins should keep helping. Netflix has expanded its operating margin by about two percentage points a year recently. Assume that pace slows, and the margin settles around 35% by 2029. That puts operating income near $24 billion, up about 50% from this year's implied level. Buybacks then do their part. Add a steadily shrinking share count, and earnings per share could plausibly reach about $5.00 to $5.50 in 2029, up from the roughly $3.50 analysts expect over the coming year. The last variable is the multiple. Hold today's 20 times forward earnings, and those figures imply a stock price somewhere near $100 to $110 by 2029. Stretch the multiple range from 18 to 22 (pessimism on one end, a mild rerating on the other), and the band widens to about $90 to $120. From $72.39, the midpoint of that range works out to an annualized return of about 13%. Not spectacular, but comfortably ahead of what most investors should expect from the broader market. And it requires no heroics, only Netflix hitting the trajectory its own guidance already sketches. Of course, the arithmetic cuts the other way if the deceleration doesn't stop. If revenue growth slides through 10% and keeps going, the margin story eventually stalls with it, and a market already refusing to pay a premium could mark the multiple down further. That's the scenario the current price is bracing for. My own read is that Netflix by 2029 is probably a $90-to-$120 stock, and the outcome inside that range comes down to growth stabilizing in the double digits. That's a fair price today, not an obviously cheap one. I'm not buying yet, but a quarter or two of steadier revenue growth would probably change my answer. Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $394,601!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,197,093!* Now, it’s worth noting Stock Advisor’s total average return is 895% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 1, 2026. Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy. Netflix Is 43% Below Its 52-Week High at 20 Times Forward Earnings. Where Will the Stock Be in 3 Years? was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a post-COVID high for quarterly investment activity, totaling over $440 million, driven by a disciplined approach to durable experiential assets. Strategic entry into a partnership with Netflix through the acquisition of Netflix House, validating the role of physical immersive experiences for digital-first brands. Successfully reduced theater concentration to approximately one-third of the portfolio, reflecting a deliberate shift toward broader experiential diversification. Performance attribution for the quarter was bolstered by a 10% year-to-date increase in box office revenue, fueled by both studio tentpoles and creator-driven breakout films. Fitness and wellness segments are increasingly viewed as protected nondiscretionary categories by consumers, contributing to stable 2x portfolio rent coverage. The FIFA World Cup served as a macro indicator of the enduring demand for congregate, location-based experiences that cannot be replicated at home. Increased 2026 investment spending guidance to a range of $600 million to $700 million, reflecting a robust pipeline sourced primarily through direct, nonmarketed relationships. Raised 2026 FFO as adjusted per share guidance to $5.41–$5.57, assuming continued portfolio strength and lower-than-anticipated bad debt expense. Anticipate approximately $65 million in funding for existing experiential development and redevelopment projects through the remainder of 2026. Investment strategy for the second half of the year remains tilted toward acquisitions over development, with yields expected to hold steady despite debt market volatility. Guidance assumes a potential modest upside from major theatrical releases, though management maintains a conservative stance on percentage rent timing. Established a new $1.6 billion credit agreement, extending maturities and providing a $600 million delayed draw term loan to ensure balance sheet flexibility. Shifted disposition strategy from defensive to opportunistic, reflecting the general health of the portfolio and successful reduction of legacy vacancies. Recognized a $500,000 defeasance fee from the early prepayment of a mortgage note, reflecting year-over-year growth in FFO and AFFO per share. Noted early operational improvements at Topgolf following its separation from Callaway, specifically regarding dynamic pricing and headcount efficiencies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that yields remain in the low-to-mid 8% range, with the current 8.5% yield being a function of specific asset mix rather than a market shift. The forward pipeline is expected to maintain similar pricing levels despite volatility in capital markets. The current plan is fully funded through existing liquidity, including $640 million available on a $1 billion revolver and unsettled forward sales agreements. While not compelled to raise equity, management noted that current share prices make incremental issuance an attractive and accretive option for funding additional pipeline growth. Management characterized the consumer as 'surprisingly resilient,' noting that even middle-income earners are prioritizing experiential spending. Strong food and beverage spend in theaters and high foot traffic at attractions suggest that experiential activities are being treated as essential connection points.

Streaming giant Netflix NFLX reported mixed second-quarter 2026 results last week. The company narrowly beat its bottom-line estimate but fell slightly short of revenue expectations. Consequently, NFLX shares pulled back 7.3% on the trading day following the release — a level where the stock has largely hovered since its July 16 announcement — reflecting investor disappointment over the revenue miss and narrowed revenue guidance for 2026. Meanwhile, Netflix bought back $4.7 billion of its shares in the second quarter — its largest quarterly share repurchases on record — demonstrating strong underlying financial health despite incurring higher cash tax payments tied in part to the Warner Bros. termination fee. Amid this backdrop, the recent pullback in NFLX’s share price may offer a golden opportunity for exchange-traded fund (ETF) investors seeking diversified exposure to the world’s leading streaming powerhouse. ETFs provide a balanced route to capture Netflix’s long-term growth potential while buffering against the single-stock volatility that often follows quarterly releases. Before diving into the specific ETFs, let us dig deeper into NFLX’s overall second-quarter performance. Netflix’s second-quarter 2026 earnings beat the Zacks Consensus Estimate by 1.3%. Its revenues missed the consensus mark by 0.1%. On a year-over-year basis, the company delivered double-digit revenue growth, driven by membership growth, pricing and increased ad revenues. In terms of engagement quantity, in the first half of 2026, Netflix members watched more than 97 billion hours, reflecting 2% growth year over year. This was slightly faster than the 1.5% growth in 2025, despite the competitive impact of the Winter Olympics and the World Cup this year. To expand the variety of its entertainment offering, NFLX has been launching new types of content like video podcasts, creators like Danny Go! and Salish & Jordan Matter, and cloud TV games, a trend it aims to continue in the near future as well, to boost viewership. The company has made notable progress on its cloud-first video game strategy this year, including the addition of several new titles, where the market opportunity is nearly $150 billion in consumer spend, excluding China and Russia. Netflix has also been witnessing positive growth in its kids section. Netflix Playground, which is NFLX’s app for kids games, has seen 3X growth in daily players since its launch. As a result, engagement in kids' mobile games has risen 600% year over year. Netflix remains on track to deliver approximately $3 billion in ad revenues by the end of this year. The company’s earlier announced partnerships with leading publishers including Condé Nast, Hearst, and People are set to bring their lifestyle content to members in the United States and several other countries beginning in August. MicroSectors FANG+ ETN FNGS This fund, with a market cap worth $557.4 million, provides exposure to 10 highly-traded growth stocks of next-generation technology and tech-enabled companies. Of these, Netflix accounts for roughly 9% of the fund’s shares. FNGS has rallied 10.7% over the past year and charges 58 basis points (bps) in fees. Vanguard Communication Services Index Fund ETF Shares VOX This fund, with net assets worth $5.7 billion, provides exposure to 112 companies that provide communications services primarily through fixed-line, cellular, wireless, high-bandwidth, and/or fiber-optic cable networks. Of these, Netflix accounts for 4.21% of the fund’s shares. VOX has risen 3.4% over the past year and charges 9 bps in fees. FINQ FIRST U.S. Large Cap AI-Managed Equity ETF AIUP This fund, with assets under management worth $4.08 million, provides exposure to 14-20 U.S. large-cap companies included in the S&P 500 Index. Of these, Netflix accounts for 4.37% of the fund’s shares. AIUP has rallied 7.8% over the past year and charges 70 bps in fees. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report Vanguard Communication Services Index Fund ETF Shares (VOX): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research