Five Magnificent Seven stocks, including Nvidia and Alphabet, had already vanished from the monthly list of new buys by the best mutual funds. But in the latest report, Apple and Meta Platforms have also disappeared as big trouble for Big Tech continues. Yet, as the Mag Seven lose their luster, top-performing institutional investors binge on shares of Netflix.
Garnering over $1.64 billion from these savvy investors, Netflix stock was this month's only member in the billion-dollar club. While Apple, Meta, Nvidia, Google and all the Mag Seven remain AWOL, Netflix joined seven other stocks raking in at least $300 million and earning a spot on this screen.
The links below highlight just a portion of this month's new buys and sells by top funds.
Click here to see all the stocks on the list.
Netflix: Former FAANG Stock Still Has Teeth
The video streaming pioneer was once a proud member of the much-hyped FAANG club, which included Meta (then known as Facebook), Amazon.com, Apple and Google before it became Alphabet.
But the FAANG acronym went out of fashion as Nvidia, Microsoft and others assumed the Magnificent Seven mantle. While Netflix may have had a beef about getting left out, the stock had just suffered a severe slump around the same time the artificial intelligence craze, led by Nvidia, took hold.
Now as Apple, Nvidia and all the Mag Seven names remain mired below their 40-week moving averages, Netflix trades above that line. Boosted by 102% earnings growth in the fourth quarter and forecasts of 25% earnings growth for 2025, the stock looks to keep streaming higher.
Earning the highest-possible 99 Composite Rating, Netflix also sports a B Accumulation/Distribution Rating.
But Netflix is not immune to the sharp downturn in the market indexes. While the stock notched an all-time high in February, it has now retreated below its 10-week line.
The IBD Methodology certainly calls for caution in this market. Plus, as a result of its huge run since 2022, Netflix's latest consolidation is a riskier late-stage chart pattern.
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Biggest Bets By The Best Mutual Funds
While Netflix was the sole member of the billion-dollar club, Uber Technologies and Amgen were among a total of eight stocks taking in at least $300 million in capital inflows from the best mutual funds.
Others include Philip Morris, O'Reilly Automotive, Coca-Cola, RTX (formerly known as Raytheon Technologies) and Vistra.
Vertex Pharmaceuticals ($297 million) and T-Mobile ($282 million) just missed the cut.
| Company | Symbol | Amt invested (mil) | Comp Rating |
|---|---|---|---|
| Netflix | $1,645 | 99 | |
| Philip Morris International | 908 | 91 | |
| O'Reilly Automotive | 660 | 90 | |
| Coca-Cola | 582 | 91 | |
| Vistra | 491 | 93 | |
| RTX | 381 | 98 | |
| Amgen | 366 | 94 | |
| Uber Technologies | 323 | 94 |
Top Mutual Funds Find Refuge In Insurance Stocks
In a market correction where once highflying growth names like Nvidia and Apple have come down to earth, the best mutual funds have poured money into insurance stocks. Twenty-three companies from the broad insurance sector have secured a spot on the latest screen.
W.R. Berkley, Chubb, Skyward Specialty Insurance, Root and Goosehead Insurance lead 12 names from the Property/Casualty/Title group.
Ryan Specialty, Marsh & McLellan, Willis Towers Watson, Baldwin Insurance and Kingstone all hail from the insurance brokers group.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
