Laffont’s Q4 Pivot: Trimming Nvidia for Netflix Amid AI and Streaming Shifts
Philippe Laffont's Coatue Management executed a strategic rebalance in Q4 2025, reducing its Nvidia (NVDA) position by 667,400 shares while accumulating 10.2 million Netflix (NFLX) shares. The move comes as Nvidia dominates AI accelerators with 90% market share—a sector projected for 29% annual growth through 2033—but follows a 162% surge in networking revenue last quarter. Meanwhile, Netflix, despite its 42% pullback from highs, has delivered 20,000% returns since 2006 and completed a 10-for-1 split in November.
Morgan Stanley's Benjamin Swinburn notes Netflix's $72B Warner Bros. Discovery bid risks are priced in at current levels. Laffont retains Nvidia as his ninth-largest holding, suggesting the trade reflects portfolio optics rather than bearishness. The hedge fund has outperformed the S&P 500 by 112 percentage points over three years.
