Billionaire Philippe Laffont Sells Nvidia (NVDA) Stock and Buys Netflix (NFLX) in Q4

TLDR

• Billionaire Philippe Laffont sold 667,400 shares of Nvidia (NVDA) in Q4 2025 while buying 10.2 million shares of Netflix (NFLX)
• Nvidia holds ~90% market share in AI accelerators and Wall Street expects 38% annual earnings growth over the next three years
• Netflix completed a 10-for-1 stock split in November; the stock is up 20,000% since 2006
• Netflix shares are down 42% from their high due to concerns over its $72 billion bid to acquire Warner Bros. Discovery
• Morgan Stanley’s Benjamin Swinburn said the risks were already priced in when Netflix hit $87 per share; it now trades at $77

Billionaire hedge fund manager Philippe Laffont made two notable portfolio moves in Q4 2025 — trimming his Nvidia position and loading up on Netflix.

Laffont runs Coatue Management, which has outperformed 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 sale, Nvidia remains his ninth largest holding, suggesting this was more about portfolio balancing than a loss of conviction.

NVIDIA Corporation, NVDA

Nvidia commands roughly 90% market share in AI accelerators, a market projected to grow at 29% annually through 2033. Its networking revenue surged 162% in Q3, driven by customers like Google, Meta, and Oracle.

CEO Jensen Huang has pointed to Nvidia’s full-stack approach — spanning GPUs, networking, and software tools — as its key competitive edge. Bernstein analysts estimate the company captures nearly 30% of total AI data center spending as profit.

Wall Street expects Nvidia’s earnings to grow at 38% annually over the next three years. At 47 times earnings, analysts consider the current valuation attractive given that growth outlook.

Why Laffont Bought Netflix

On the buy side, Laffont picked up 10.2 million shares of Netflix, which completed a 10-for-1 stock split in November 2025. The stock is up 20,000% since January 2006.

According to Bank of America data, stocks have averaged a 25% gain in the 12 months following a split announcement since 1980. Netflix traded at $109 when it announced the split, implying a target of $136 — roughly 76% above its current price of $77.

Netflix shares have fallen 42% from their peak. The drop is tied to investor concern over its $72 billion bid to acquire Warner Bros. Discovery, which owns HBO Max, DC Universe, Game of Thrones, and Harry Potter.

Netflix Valuation After the Drop

Morgan Stanley analyst Benjamin Swinburn said the risks were already discounted when Netflix hit $87 per share. The stock now trades at $77.

Wall Street has trimmed forward earnings estimates since the acquisition bid, but the consensus still calls for 22% annual earnings growth over the next three years. That puts the stock at 31 times earnings.

Netflix remains the most-watched streaming service by monthly active viewers and share of total viewing time, excluding YouTube.

Its original content also leads the market. Stranger Things, Squid Game, and Wednesday were the top three original streaming series in 2025 by viewing time, all produced by Netflix. The company produced seven of the top 10 original streaming series last year, according to Nielsen.

Netflix currently trades at $77 per share, down from a recent high, with analysts split on the near-term impact of the Warner Bros. Discovery bid.

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