Netflix's primary business is a streaming video on demand service now available in almost every country worldwide except China. The firm primarily generates revenue from subscriptions to its eponymous service. Netflix delivers original and third-party digital video content to PCs, internet-connected TVs, and consumer electronic devices, including tablets, video game consoles, Apple TV, Roku, and Chromecast. Netflix is the largest SVOD platform in the world with over 220 million subscribers globally.

We have adjusted our recommended sector allocations for the third quarter of 2023. We raised Communication Services to Over-Weight from Market-Weight. This "barbell" sector contains high-growth, low-income social media stocks on one end and low-growth, high-income telecom services stocks on the other. Hybrid cloud is emerging as the key delivery mechanism for AI-as-a-service. Social media stocks offering hybrid cloud services are positioned to benefit from the AI wave, in our view. As well, telecom stocks are likely near the end of mobile device weakness and are positioned for improved customer ARPU as the next generation of 5G smartphones launch in fall 2023. We have lowered Materials to Market-Weight from Over-Weight. Even as energy prices recover, many commodity prices have remained weak or weakened further. Most are traded in U.S. dollars. The dollar is inversely correlated to commodities, and long-term dollar strength is weighing on commodity prices. Elsewhere, demand from China remains sluggish as the lifting of zero-tolerance COVID restrictions has failed to stimulate the economy. Our current Over-Weight sectors are Communication Services, Financial Services, Consumer Discretionary and Technology. Our current Market-Weight sectors are Basic Materials, Industrials, Healthcare, Real Estate, and Utilities. Our Under-Weight sectors are Energy and Consumer Staples. We suggest that advisors and investors leverage this consistent and comprehensive process to adjust sector weightings within diversified equity portfolios, with a primary focus on the largest sectors.

PDD Holdings (Nasdaq: PDD) is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfilment capabilities, that support its underlying businesses.

PDD Holdings (Nasdaq: PDD) is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfilment capabilities, that support its underlying businesses.