What Gives Netflix (NFLX) a Valuable Moat?

In its first-quarter 2026 capitalist letter, Oakmark Fund highlighted Netflix, Inc. (NASDAQ:NFLX) arsenic a recently established position. Netflix, Inc. (NASDAQ:NFLX) is simply a starring subscription-based streaming amusement platform. On April 13, 2026, Netflix, Inc. (NASDAQ:NFLX) banal closed astatine $98.93 per share. One-month instrumentality of Netflix, Inc. (NASDAQ:NFLX) was 2.00%, and its shares gained 13.60% implicit the past 12 months. Netflix, Inc. (NASDAQ:NFLX) has a marketplace capitalization of $418.51 billion.

Oakmark Fund stated the pursuing regarding Netflix, Inc. (NASDAQ:NFLX) successful its Q1 2026 capitalist letter:

"Netflix, Inc. (NASDAQ:NFLX) is the starring streaming amusement work with implicit 325 cardinal subscribers and $45 cardinal of revenue. This standard creates a invaluable moat, successful our view. Netflix buys much contented than its competitors successful aggregate but pays little per subscriber, creating a invaluable lawsuit proposition arsenic the concern grows. Still, the banal declined importantly implicit the past respective months arsenic marketplace participants focused connected slowing engagement and the company’s attack to bargain Warner Bros, creating an charismatic buying accidental successful our view. We are assured that Netflix’s engagement remains beardown and believed that the shares looked charismatic with oregon without the acquisition. We find the concern charismatic arsenic it is trading for its lowest comparative valuation since 2022, a play that produced beardown consequent returns."

Netflix, Inc. (NASDAQ:NFLX) ranks 13th connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 146 hedge money portfolios held Netflix, Inc. (NASDAQ:NFLX) astatine the extremity of the 4th quarter, compared to 154 successful the erstwhile quarter. While we admit the imaginable of Netflix, Inc. (NASDAQ:NFLX) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.