Sustainable Growth Advisers (SGA) disclosed in its Q2 2026 investor letter that it increased its stake in Netflix (NFLX) during a period of stock price weakness, elevating its target weight to an average level. The firm noted that Netflix's stock price had fallen 34.66% over the past 52 weeks, and despite solid Q1 results, its Q2 revenue and EBIT guidance were slightly below expectations. Furthermore, management's decision not to raise full-year guidance disappointed some investors. SGA is optimistic about Netflix's subscription model, content library, and global growth potential, and mentioned Netflix's plans to allocate excess free cash flow to AI investments and a new $25 billion stock repurchase program.