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Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” first-quarter 2026 investor letter. The objective of the fund is to deliver capital appreciation by investing in diverse large-cap US companies. A copy of the letter can be downloaded here. In the quarter, the Fund (investor class) outperformed the S&P 500 Index, returning -2.47% vs. -4.33% for the index. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Oakmark Fund highlighted Netflix, Inc. (NASDAQ:NFLX) as a newly established position. Netflix, Inc. (NASDAQ:NFLX) is a leading subscription-based streaming entertainment platform. On April 13, 2026, Netflix, Inc. (NASDAQ:NFLX) stock closed at $98.93 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was 2.00%, and its shares gained 13.60% over the past twelve months. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $418.51 billion.
Oakmark Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q1 2026 investor letter:
“Netflix, Inc. (NASDAQ:NFLX) is the leading streaming entertainment service with over 325 million subscribers and $45 billion of revenue. This scale creates a valuable moat, in our view. Netflix buys more content than its competitors in aggregate but pays less per subscriber, creating a valuable customer proposition as the business grows. Still, the stock declined significantly over the past several months as market participants focused on slowing engagement and the company’s approach to buy Warner Bros, creating an attractive buying opportunity in our view. We are confident that Netflix’s engagement remains strong and believed that the shares looked attractive with or without the acquisition. We find the business attractive as it is trading for its lowest relative valuation since 2022, a period that produced strong subsequent returns.”
Netflix, Inc. (NASDAQ:NFLX) ranks 13th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 146 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the fourth quarter, compared to 154 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.
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