We recently published a list of 13 Best NASDAQ Stocks to Buy So Far in 2025. In this article, we are going to take a look at where Netflix, Inc. (NASDAQ:NFLX) stands against other NASDAQ stocks to buy in 2025.

On April 4, Wedbush analyst Dan Ives appeared on CNBC to discuss the potential impact of current tariffs and compared the situation to an economic armageddon. If the current tariffs remain in place, Ives thinks it would lead to a 15% to 20% demand reduction across the board. He thinks that investor anxiety is much higher considering how things were in the March 2020 COVID-19 crash earlier. The analyst thinks that investors should now focus on the likelihood of tariff adjustments from comments about negotiations, the impact on consumer-focused companies, and the potential for demand destruction. He even thinks that companies may refuse to provide guidance in the first-quarter earnings calls due to the persistent tariff uncertainty.

Ives thinks that a lot of tech companies will not be able to absorb high tariff increases and rather this cost will be passed on to the consumers which will lead to significant margin erosion and even potential sales declines. He indicated that tech stocks are currently pricing in a 10% to 15% cut to numbers. He suggests that investors should now look at companies with strong long-term potential as he believes earnings may normalize in 2025 and 2026. The analyst also addressed the defensive performance of defense contractors. While acknowledging the relative stability here, Ives cautioned that even these even such sectors are not immune to tariffs. He noted the significant foreign component, specifically 40% to 50% in some instances, in hardware and other sectors.

Our Methodology

We sifted through the financial media reports to compile a list of the top NASDAQ stocks to buy for 2025. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A home theater with family members enjoying streaming content together.

Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 144

Netflix, Inc. (NASDAQ:NFLX) provides entertainment services by offering television series, documentaries, feature films, and games across a range of genres and languages. It offers its members the ability to receive streaming content through devices like TVs, digital video players, TV set-top boxes, and mobile devices.

The company added 19 million subscribers in the last quarter of 2024. This was fueled by major events as well as content, but a majority of these subscribers came due to a diverse content library. This division focuses on original series, films, games, and live sports. Live sports, like the NFL games, alone gathered around 30 to 31 million viewers, while WWE Raw drew 5 million views in just its first week. Games like “Squid Game: Unleashed” are also becoming top downloads for the company.

The company’s ad revenue is growing and is expected to double in 2025 after doubling last year as well.  Ad-supported plans make up 55% of its total signups in the ad-supported regions. Netflix, Inc. (NASDAQ:NFLX) is actively investing in its ad tech and games to improve growth, which has fueled higher game downloads already.

Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q4 2024 investor letter:

“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. Netflix, Inc. (NASDAQ:NFLX) was our top relative contributor; the company provided a favorable outlook for subscriber growth in 2025 and made progress in two key areas, live TV and advertising. The streaming service broadcast its first sporting events, including two National Football League games on Christmas, and said that the ad-supported plan it launched two years ago amassed 70 million subscribers, more than investors expected.”

Overall, NFLX ranks 8th on our list of the best NASDAQ stocks to buy so far in 2025. While we acknowledge the growth potential of NFLX, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NFLX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.