TLDR
- Philippe Laffont sold 667,400 Nvidia (NVDA) shares in Q4 while buying 10.2 million Netflix (NFLX) shares
- Nvidia holds ~90% AI accelerator market share with 38% annual earnings growth expected over three years
- Netflix completed a 10-for-1 stock split in November; shares are down 42% from recent highs at $77
- The Netflix drop is tied to its $72 billion bid for Warner Bros. Discovery
- Morgan Stanley says risks were priced in at $87; consensus still sees 22% annual earnings growth
Billionaire Philippe Laffont made two headline moves in Q4 2025 — cutting his Nvidia position and making a big bet on Netflix.
Laffont runs Coatue Management, a hedge fund that has beaten the S&P 500 by 112 percentage points over the last three years.
He sold 667,400 shares of Nvidia during the quarter. Despite the trim, NVDA still ranks as his ninth largest holding, pointing to rebalancing rather than an exit.
Nvidia holds roughly 90% market share in AI accelerators, a segment projected to grow at 29% annually through 2033. Networking revenue jumped 162% in Q3, with Google, Meta, and Oracle among its key customers.
Bernstein analysts estimate Nvidia captures nearly 30% of total AI data center spending as profit. Wall Street expects earnings to grow 38% annually over the next three years, and at 47 times earnings, many analysts still consider the stock attractively priced.
Why Laffont Bought Netflix
Laffont picked up 10.2 million Netflix shares after the company completed a 10-for-1 stock split in November 2025. NFLX is up 20,000% since January 2006.
Bank of America data shows stocks have averaged a 25% gain in the 12 months after a split announcement since 1980. Netflix traded at $109 at the time of its announcement, putting a historical-average target at $136 — roughly 76% above the current price of $77.
Netflix is the most-watched streaming service by monthly active viewers and share of total viewing time, excluding YouTube. It produced seven of the top 10 original streaming series in 2025, including Stranger Things, Squid Game, and Wednesday, according to Nielsen.
The Warner Bros. Discount
Netflix shares are down 42% from their peak, largely due to investor concern over its $72 billion bid to acquire Warner Bros. Discovery.
Morgan Stanley analyst Benjamin Swinburn said the risks were already priced in at $87 per share. The stock now trades at $77.
Wall Street has trimmed forward estimates since the bid was announced, but the consensus still calls for 22% annual earnings growth over three years, putting the stock at 31 times earnings.
Netflix currently trades at $77, with analyst sentiment divided on the near-term impact of the Warner Bros. Discovery acquisition bid.
The post Netflix (NFLX) Stock: Why a Billionaire Just Bought 10 Million Shares at a 42% Discount appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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