Warren Buffett may target Netflix for his next megacap investment following a significant purchase of Alphabet stock last year [1, 2].
This potential move signals a continued shift by Berkshire Hathaway toward high-growth tech giants that are trading at perceived discounts. If the Omaha-based firm enters the streaming market, it could validate Netflix's current valuation as a long-term value play.
Berkshire Hathaway established its position in Alphabet in 2025 [1, 2]. The initial stake in the company was $4.3 billion [4]. This investment came as Alphabet shifted its business model, with its cloud revenue growing 63 percent [3].
There is a discrepancy regarding who led the Alphabet acquisition. Warren Buffett said in an interview with CNBC that he initiated the investment [2]. However, other reports said the decision was made by Berkshire's chief executive officer, Greg Abel [4].
A Wall Street expert now suggests that Netflix is the logical next step for the investment firm [1, 2]. The streaming giant is currently trading at its cheapest valuation in three years [5].
Buffett has historically avoided tech stocks until they exhibit the characteristics of a "moat"—a sustainable competitive advantage. The analyst said Netflix's growth prospects relative to its current price align with this strategy [1, 2].
Berkshire Hathaway continues to manage a massive portfolio from its headquarters in Omaha, Nebraska [3]. The firm's entry into Alphabet marked a departure from its traditional avoidance of the volatile tech sector, provided the entry price is favorable [1, 2].
“Netflix is currently trading at its cheapest valuation in three years”
The potential shift toward Netflix suggests that Berkshire Hathaway is increasingly comfortable with the 'megacap' tech landscape, provided the companies demonstrate strong fundamentals and reasonable valuations. By moving from Alphabet's cloud-driven growth to Netflix's streaming dominance, Buffett would be diversifying his tech exposure across different digital monopolies.
