Netflix's Q2: Streaming Giant Underperforms, But Long-Term Bets Remain

The Loomis Sayles Global Growth Fund achieved a 6.43% return in Q2 2026, falling short of the MSCI ACWI Index's 14.93% performance. The fund's strategy centers on long-term private equity investments in high-quality businesses, acquiring stakes at significant discounts.

Netflix, Inc. (NASDAQ:NFLX), a prominent subscription streaming platform and a top fund holding, was a notable detractor from performance in the recent quarter. As of August 21, 2026, Netflix's market capitalization stood at $331.41 billion, with its shares experiencing a 34.66% loss over the preceding 52 weeks, despite a 13.05% one-month return.

Loomis Sayles highlighted Netflix's strong competitive advantages, including its pioneering role in subscription video on demand (SVOD), a global subscriber base exceeding 325 million, and significant international revenue. The fund cited Netflix's brand strength, premium pricing, and extensive investment in content, evidenced by numerous Emmy nominations and wins, as key factors supporting high barriers to entry.

The fund adjusted its sector allocations, maintaining an overweight position in communication services, consumer discretionary, and healthcare. Conversely, it held an underweight stance in information technology, financials, industrials, and consumer staples sectors, reflecting its strategic outlook for the period.