RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q1 2026 investor letter. A copy of the letter can be downloaded here. The US stock market declined in the quarter with the S&P 500 index (“S&P”) and the Russell 1000 Growth index (“RLG”) falling 4.33% and 9.78%, respectively. Markets started the year positively but became volatile mainly due to increased tensions with Iran. The Federal Reserve kept rates unchanged in January and February. Still, rising energy prices and weaker economic data sparked concerns about stagflation, leading investors to rethink the timing and scale of future rate cuts. Investor sentiment shifted from growth and tech stocks amid inflation, interest rate, and supply chain concerns. Opposing AI-driven rotations heavily influenced investor sentiment, affecting growth stocks—enthusiasm grew for semiconductor firms linked to AI infrastructure spending, while enterprise software companies, viewed as vulnerable to AI disruption, faced pessimism. The Fund’s software holdings were sold off heavily, while the underweight in semiconductor companies, which benefited most from AI infrastructure spending, affected the performance. Despite challenges, the firm remains confident in the long-term prospects and valuations of its portfolio companies. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, RiverPark Large Growth Fund highlighted Netflix, Inc. (NASDAQ:NFLX). Netflix, Inc. (NASDAQ:NFLX) is a leading subscription-based streaming entertainment platform. On July 2, 2026, Netflix, Inc. (NASDAQ:NFLX) closed at $77.65 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was -7.06%, and its shares lost 41.12% over the past 52 weeks. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $326.97 billion.
RiverPark Large Growth Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q1 2026 investor letter:
“Netflix, Inc. (NASDAQ:NFLX): NFLX was the fifth-largest contributor for the quarter, gaining approximately 3% and significantly outperforming a sharply down market. Netflix benefited from multiple positive developments during Q1. In January, the company’s decision to walk away from its proposed acquisition of Warner Bros. Discovery removed a major strategic and regulatory overhang from the stock, allowing investors to refocus on Netflix’s strong fundamentals. The company’s Q4 2025 earnings report highlighted full-year 2025 revenue of approximately $45.2 billion, an operating margin of nearly 29.5%, and global paid membership crossing 325 million, with management guiding for 2026 revenue growth of 12–14% and operating margin expansion to 31.5%. Netflix’s subscription-based, global revenue model also made it a natural defensive holding during the March geopolitical-focused selloff.
We continue to view Netflix as the dominant global streaming platform with durable competitive advantages. Its unmatched content library, scalable technology infrastructure, growing advertising business, and pricing power across its global subscriber base provide multiple monetization pillars. With strong free cash flow generation and improving operating leverage, Netflix remains well positioned to compound earnings over the long term.”
