The stock market appears to be in turmoil right now. Many of the hottest tech names are sinking, as investor sentiment sours on the future of the economy, uncertainty builds around an interest rate cut path given inflationary pressures, and spending is being called into question by many of the mega-cap tech names which are driving the economy forward.
The Alger Concentrated Equity ETF outperformed the Russell 1000 Growth Index during the third quarter of 2025. NVIDIA Corporation (NVDA), Nebius Group N.V. (NBIS) and Astera Labs, Inc. (ALAB), were among the top contributors to performance. Netflix, Inc. (NFLX), GFL Environmental Inc (GFL), and Twilio, Inc. (TWLO), were among the top detractors from performance.
Netflix has nearly put up a monster tenfold gain in the past decade. Growing subscribers and revenue have helped drive profits, lifting the stock along the way.
After the post-earnings pullback, new debates around NFLX's terminal value have emerged. Angst around YouTube's rising engagement share inherently misunderstands the use case NFLX serves. We view NFLX as a premium video asset that continues to undermonetize relative to the value it generates.
Netflix has been building out its original content library and now has enough popular programming to warrant a major investment in the retail space. The streaming giant has partnered with toy companies like Hasbro, Mattel and Jazwares to bring merchandise to store shelves across a broad range of segments.
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