Growth vs. Value: Market trend shift

What happened: Netflix's growth has slowed compared to the 2010s, but its margins and free cash flow have improved, narrowing the gap between its valuation and that of value stocks. Meanwhile, value investing legend Bill Miller has added two value stocks, Crescent Energy and Enphase Energy, to his portfolio, reflecting the recent outperformance of value stocks over growth.

Market impact: This shift is pushing investors to reassess their portfolios, with value stocks now offering more upside relative to their risk. This trend is affecting growth-oriented tech stocks like Netflix and other high-growth names that have led the market for several years.

What to watch next: Netflix's Q2 earnings report on July 20 will provide insights into its subscriber growth and free cash flow, potentially influencing its valuation and the growth vs. value debate. Additionally, the performance of Miller's new holdings, Crescent Energy and Enphase Energy, will be closely watched as bellwethers for the value investing strategy.