Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.

Netflix демонстрирует высокие показатели рентабельности, такие как ROE (41.86%) и ROA (19.52%), что значительно выше медианных значений для сектора. Однако, компания имеет высокие мультипликаторы, такие как P/E (36.76), которые указывают на возможную переоцененность акций. Долговая нагрузка остается на приемлемом уровне с соотношением долга к капиталу 0.56, что ниже медианы. Выручка и чистая прибыль также показывают значительный рост, что является положительным знаком. Тем не менее, снижение валовой маржи (48.09%) по сравнению с отраслевыми показателями немного ослабляет позитивный настрой. Наличие значительных активов и рост чистых доходов поддерживает финансовую устойчивость, но высокие мультипликаторы могут вызвать осторожность у инвесторов. В целом, несмотря на сильные финансовые показатели и растущий бизнес, высокие мультипликаторы и динамика валовой маржи требуют более осторожного подхода к оценке акций компании.

Netflix, Inc.

Investors were expecting more from Netflix (NASDAQ: NFLX) in the quarterly financial update.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
*Stock prices used were the afternoon prices of April 27, 2026. The video was published on April 29, 2026.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $497,606!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,306,846!*
Now, it’s worth noting Stock Advisor’s total average return is 985% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Parkev Tatevosian, CFA has positions in Netflix. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Is Netflix Stock Falling, and is it a Generational Buying Opportunity?

Key Points
Investor sentiment has weighed on Netflix stock since late last year, as the company navigated several high-profile challenges.
The company's results came in ahead of expectations, but investors panned Netflix's guidance.
The board of directors authorized a sizeable share buyback, taking advantage of the stock's historically low price.
There's been a lot going on with Netflix (NASDAQ: NFLX) in recent months. Late last year, the company announced a 10-for-1 stock split, the first in nearly a decade. Then, after making a bid to purchase the streaming and studio assets of Warner Bros. Discovery, Netflix took the high road and bowed out of what could have been a costly bidding war with Paramount Skydance. Finally, co-founder and executive chair Reed Hasting announced he would depart the company after more than a quarter-century at the helm.
At roughly $92, the streaming pioneer's stock price remains more than 30% off its peak from last year. Yet Netflix's operating and financial results remain robust, and management just made a bold statement that signals that the stock price is compelling.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Fire sale
In a regulatory filing last week, Netflix announced, without much fanfare, that its board of directors had approved a $25 billion share buyback. For context, that's more than the $20 billion the company plans to spend on content for all of 2026.
The new $25 billion buyback is in addition to the $6.8 billion remaining under its existing repurchase agreement, bringing the company's total to roughly $31.8 billion for share repurchases.
In a recent regulatory filing, Netflix disclosed that it had approximately 4.2 billion shares outstanding. A back-of-the-envelope calculation suggests the company could retire more than 8% of its outstanding stock -- representing a notable reduction in its share count. Current stockholders would thereby be entitled to a greater share of the company's earnings.
Management obviously believes Netflix stock is inexpensive, and history backs that up. At less than 30 times earnings, shares haven't been this cheap in more than three years.
Show me the money
It's worth putting this move in the context of Netflix's recent results and why investors panned the results. In the first quarter, Netflix delivered revenue of $12.25 billion, up 16%, driving earnings per share (EPS) of $1.23, which jumped 86%. This was well ahead of management's forecast of $12.16 billion in revenue and $0.76 in EPS. Higher-than-forecast membership growth, price increases, and growing ad revenue contributed to the higher sales.
Investors seemed concerned about the company's second-quarter outlook, which called for revenue growth of 14% to $12.6 billion and EPS of $0.78, up just 8%. Management explained that amortization would be front-loaded in Q2 and decelerate throughout the remainder of the year, so the weak bottom line is just a matter of timing.
Netflix continues to take steps to drive future growth. The recently instituted U.S. price increase didn't drop until late March, meaning future quarters will still benefit as the price hikes -- which impact all tiers -- are rolled out. Moreover, management says the company is on track to double its advertising revenue to $3 billion from $1.5 billion last year.
These are hardly the results of a business in peril. On the contrary, this shows a company that's generating solid revenue and profit growth.
Given the totality of the situation, this represents a compelling opportunity for a stock that has delivered returns of 922% over the past decade (as of this writing), nearly four times the 243% gains of the S&P 500.
Lest there be any question, I believe Netflix stock is a buy.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $497,606!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,306,846!*
Now, it’s worth noting Stock Advisor’s total average return is 985% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 29, 2026.
Danny Vena, CPA has positions in Netflix. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

25 Billion Reasons to Buy Netflix Stock Right Now

Key Points
Netflix's first-quarter revenue grew 16%, but second-quarter guidance implies a step down to 13%.
Co-founder Reed Hastings will step down from the company's board in June.
The streaming giant's advertising business is on track to roughly double this year.
Netflix (NASDAQ: NFLX) shares sold off following its first-quarter earnings report earlier this month. A combination of factors spooked investors, including a forecast for slower growth in Q2 and news that Netflix co-founder Reed Hastings was stepping down from the company's board of directors. The decline took the stock from outperforming the market before the report to underperforming it.
With shares in the red year to date and meaningfully trailing the S&P 500, is this a buying opportunity?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Unfortunately, even though the business is still doing great and has a long runway thanks to its pricing power and its fast-growing but still nascent advertising business, I just can't get behind a bullish outlook for the stock at this price. In other words, I love the business but not the stock -- at least not at this price.
A solid quarter, but softer guidance
Netflix's first-quarter results were impressive.
Its first-quarter revenue rose 16% year over year to about $12.3 billion, putting the figure slightly ahead of management's forecast for the period. And operating income climbed 18% to $4.0 billion, as the company's operating margin expanded to 32.3% from 31.7% in the year-ago quarter. Further, Netflix's free cash flow jumped to $5.1 billion, helped along by a $2.8 billion cash receipt tied to the terminated Warner Bros. Discovery transaction.
But as is often the case with Netflix, the guidance is what moved the stock.
Management called for second-quarter revenue of about $12.6 billion, implying 13% year-over-year growth -- a clear deceleration from the 16% pace the company just delivered. Further, management said its operating margin is also expected to narrow year over year in Q2, contracting from 34.1% in the second quarter of 2025 to 32.6%, with content amortization growth peaking in the period before easing in the back half.
And the company's full-year 2026 guidance was left unchanged: revenue of $50.7 billion to $51.7 billion (12% to 14% growth) and an operating margin of 31.5% -- up from 29.5% in 2025.
Then there's Hastings.
The co-founder, who handed off the CEO role in 2023, will not stand for reelection when his term expires at the June annual meeting.
Co-CEO Ted Sarandos pushed back during Netflix's first-quarterearnings callon speculation tying the move to potential disagreements regarding the abandoned Warner Bros. Discovery deal.
"Reed was a big champion for that deal," the CEO explained. "He championed it with the Board. The Board unanimously supported the deal. So we had perfect alignment with management and the Board on the Warner Bros deal."
In short, Netflix management insinuated that Hastings's departure shouldn't be viewed as a red flag.
Pricing power and ads
Further, Netflix boasts two major catalysts -- and those catalysts continue to perform well.
Those catalysts, of course, are the company's ability to regularly raise prices (its pricing power) and its fast-growing advertising business.
The company is once again reminding investors of its pricing power, having raised prices in March.
"Our recent price changes have gone well, reflecting the strong value we provide members," the company said in its first-quarter shareholder letter.
Co-CEO Greg Peters added context on the company's approach to price increases during theearnings call "Occasionally, when we've added more value, we ask our members to contribute more so that we can invest that into delivering them even more entertainment value."
This ability to regularly increase prices is a growth driver that should persist not just for years, but arguably for decades.
And the advertising business, which is only about three years old, is the other lever.
Netflix reiterated that it is on track to reach roughly $3 billion in ad revenue this year -- double the 2025 level. Additionally, Netflix said its advertiser count rose 70% year over year to more than 4,000, and the cheaper ad-supported plan accounted for over 60% of sign-ups in countries where it is offered during Q1.
So, why not buy Netflix stock now?
Because Netflix is decelerating into what the company itself describes as an "intensely competitive" market -- one that includes well-capitalized tech giants with their own streaming services and traditional media companies simultaneously migrating their businesses from linear TV to streaming. Then there are other forms of entertainment competing for user attention -- namely, social media platforms.
Finally, the stock's valuation is arguably a bit stretched. With a price-to-earnings ratio of 30 and a forward price-to-earnings ratio in the high twenties, there's little room for unexpected challenges, such as a slowdown in user growth or a deterioration in Netflix's pricing power.
At what price would I buy? If Netflix shares fell to the point that the price-to-earnings ratio was in the mid-twenties, I'd be interested.
Until shares get there (if they ever do), I'm content to wait.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $492,752!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,327,935!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 201% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 28, 2026.
Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

I Want to Buy Netflix Stock, Just Not at This Price

Key Points
Netflix is expanding into live events, video podcasts, and gaming to further engage subscribers.
Although the streaming giant's stock is well off 52-week highs, the company's balance sheet is very strong.
The company has more than 325 million subscribers.
Trading at $91 per share, Netflix (NASDAQ: NFLX) is well off its 52-week high of $134 as of this writing on April 27. The dip in its price presents an opportunity for investors who can see Netflix for what it really is: a company that's positioned to dominate the streaming world.
Yes, Netflix is ubiquitous in the United States, but there's a more compelling story outside of the U.S. Netflix has a largely untapped addressable market. It's also a business that's rapidly expanding beyond streaming, with surging free cash flow that's only strengthening the company's ability to grow.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Shockingly, not everyone in the world has Netflix
Netflix currently reaches only 45% of its total addressable market. This realization is a huge win for investors because it means that Netflix, even though it's already quite large, still has plenty of room to grow. The streaming giant is available in more than 190 countries and is focusing on creating localized content to engage people in their own languages and cultures.
The company is becoming an entertainment ecosystem. Far beyond just streaming movies, Netflix is also expanding into gaming, video podcasts, and live entertainment. Its advertising tier is growing quickly as well. This effort aims to deepen subscriber engagement and build a competitive moat that won't be easy to replicate or tear down.
Netflix has a powerful balance sheet right now. The company's stockholders' equity grew from $26.6 billion at the end of 2025 to $31.1 billion at the end of March 2026. Its free cash flow also exploded to $5.2 billion in the first quarter of 2026.
Even Netflix has critics
Not everyone believes in Netflix's growth strategy, however. Some analysts were disappointed after Netflix missed out on acquiring Warner Bros. Discovery amid a contentious bidding war with Paramount Skydance. Critics also believe that the departure of co-founder and board chairperson Reed Hastings in June is a negative sign for the company.
This is all short-sighted, in my opinion. Yes, an acquisition of that size could've potentially supercharged Netflix's growth mission, but at a substantial cost. Hastings is also leaving to pursue philanthropic endeavors and other passions. Current CEO Ted Sarandos said that Hastings' departure had nothing to do with the failed Warner Bros. bid.
Netflix has proven time and again that it can grow organically and sustainably. It has matured into a fully fledged media company with a solid strategic plan to expand worldwide through localized content and multiple verticals. This latest pullback in stock price should be a welcome opportunity and entry point for long-term investors.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $492,752!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,327,935!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 201% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 28, 2026.
Catie Hogan has positions in Warner Bros. Discovery. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Netflix Stock Is Down 32%. Here's Why It's a Screaming Buy.

Key Points
Reed Hastings is leaving Netflix's board in June.
Hastings was reportedly in favor of the company's plans to acquire Warner Bros., which it ultimately abandoned.
Investors appear concerned about the company's future as Netflix's stock has been declining since the announcement.
Streaming giant Netflix (NASDAQ: NFLX) has transformed the way people watch movies and TV shows over the years. And co-founder Reed Hastings has been a big part of the company's impressive growth. Recently, however, he has announced he will be leaving the company.
It's a potentially unsettling development for Netflix, which has been a lackluster stock to own over the past 12 months, declining by 16% and underperforming the broader market. What does Hastings' departure mean for Netflix, and could it result in more of a decline for the stock, or is it worth buying it today given its reduced valuation?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Could this change Netflix's long-term strategy?
While Hastings has been key in expanding the company's vision over the years, he hasn't been co-CEO since 2023, when he managed the company's day-to-day operations along with co-CEO Ted Sarandos. Currently, it's Sarandos and Greg Peters who are Netflix's co-CEOs. Hastings currently serves as the company's chairman, but will leave that position in June.
The announcement comes at an intriguing time, as Netflix recently walked away from a deal to acquire key assets from Warner Bros. Discovery, after a bidding war ensued with Paramount Skydance. Sarandos says Hastings supported the Warner Bros. deal, as did the board. Analysts, however, note that Hastings has typically avoided large acquisitions in the past.
With Netflix missing out on the Warner Bros. deal, question marks looming about its future growth, and new leadership at the board, it's certainly possible that the company takes on a more aggressive strategy in the future, but it's by no means a guarantee.
Should investors be worried about Netflix stock?
Since the announcement that Hastings will be leaving the company, shares of Netflix have been falling. Year to date, the stock has declined by around 2%, and it's down more than 30% from its 52-week high of $134.12.
Hastings leaves the company in a strong financial position, with Netflix generating $11 billion in profit last year on revenue totaling $45 billion. Its revenue rose by 15%, which was strong, but it raises the question of whether management might be tempted to sacrifice some margin in exchange for more growth down the road. Netflix has achieved high profitability while also growing rapidly, something many of its rivals have struggled to do.
There is some uncertainty ahead, but given Netflix's strong position today, I don't think investors should worry about the business, and there's no indication it will deviate significantly without Hastings involved. Buying the streaming stock on the dip today could be a good move for long-term investors.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 27, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Netflix Co-Founder Reed Hastings Is Leaving the Company. What Does This Mean for the Stock?

Key Points
Although both companies have been extremely successful, Nvidia and Netflix have also faced challenges this year.
Netflix is coming off a failed acquisition attempt and disappointing earnings, while Nvidia has faced artificial intelligence headwinds.
Still, Wall Street analysts see good opportunities in both stocks during the next year.
Most stocks have faced a turbulent year thus far in 2026. Although the Iran war is the main culprit, even before the war, large tech and artificial intelligence stocks faced concerns about high valuations and other factors that weighed on their respective businesses.
The market has bounced back significantly in recent weeks and hit all-time highs, and analysts still see substantial upside ahead for some of the most popular large tech and AI stocks, such as Nvidia (NASDAQ: NVDA) and Netflix (NASDAQ: NFLX).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Wall Street says this one will make you richer during the next 12 months.
Nvidia: The Vera Rubin platform could be huge
Nvidia has rebounded this year, and its stock is now up roughly 12% (as of April 24). The company reported blowout earnings in its fiscal 2026 fourth quarter earlier this year, with results and a forecast for the current quarter well ahead of Wall Street estimates.
Furthermore, the company provided promising updates. Chief Executive Officer Jensen Huang said he expects $1 trillion of sales between its Blackwell and Vera Rubin platforms between March of this year and the end of 2027.
Huang also said that the company has been preparing to restart chip sales to China, a potentially meaningful market for the company, although there are yet to be any official sales as of this writing.
Nvidia and other AI stocks have faced headwinds amid investor concern about elevated valuations, intense capital expenditures on AI infrastructure, and questions about the returns on these investments. The sheer size of Nvidia, with a roughly $5 trillion market cap, is also daunting to some investors.
Wall Street analysts are bullish on the company. Of the 43 analysts who have issued research reports during the past three months, 41 have a buy rating on the stock, according to TipRanks. The average price target implies 35% upside from current levels, while the Street-high target of $380 implies 88% upside.
Bernstein analyst David Dai recently reiterated his buy rating on the company and issued a $300 price target. Dai say the new Vera Rubin platform will be a "monster" with "5x more inference performance and 3.5x more training performance" than Nvidia's current platforms.
Dai sees this as particularly impressive, since Vera Rubin was built with only 1.6 times more transistors, the fundamental building blocks of chips.
Although I do think AI concerns are real, it's difficult for me to be bearish on Nvidia for the next year, considering Huang's confidence about sales, strong reports on the Vera Rubin platform, and Nvidia's fairly reasonable valuation of about 24.5 times forward earnings.
Netflix: Ignore the noise and buy the dip
Netflix has also had a busy year for several reasons. The company got involved in a highly publicized bidding war for certain assets owned by Warner Bros. Discovery, including HBO Max and its film and television studios.
Netflix had agreed to a deal with Warner Bros., but Paramount Skydance aggressively countered until the deal became too good for Warner Bros. to pass up. Netflix chose to walk away and received a $2.8 billion breakup fee, but the whole saga turned into a bit of a distraction.
It also became clear that investors had no desire to see Netflix stray from its organic growth strategy.
Netflix stock had bounced back a good deal, but ran into more trouble at the company's recent earnings report. After just implementing subscription price hikes across all its tiers, Netflix did not raise its full-year revenue outlook, and its current-quarter projection also came in soft.
Board Chair and co-founder Reed Hastings also announced his departure from the company.
Still, Wall Street is not fazed. Of the 35 analysts who have issued research reports during the past three months, 29 have a buy rating on the stock, and six have a hold rating, according to TipRanks. The average price target implies 24% upside from current levels, while the Street-high target of $135 implies 47% upside.
Recent analyst reports after earnings recommend buying the dip. Netflix continues to execute well, with its dominance in the streaming industry and high engagement metrics driving strong pricing power. Despite subscription increases in 2025 and this year, subscriber growth has been strong.
Overall, Wall Street believes that Nvidia stock will make you richer over the next year. But I still like Netflix, given its extremely strong tech-powered model that doesn't appear overly reliant on AI. However, AI is still an important component of its business, so it can benefit from this groundbreaking technology as well.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 27, 2026.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Nvidia, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nvidia vs. Netflix: Wall Street Says This Large Tech Stock Will Make You Richer Over the Next 12 Months

Key Points
Netflix made early investors a lot of money.
The streaming entertainment provider still has opportunities for growing revenue.
Anyone planning on buying the stock should still keep their expectations in check.
If you saw the vision and took on a calculated risk, investing $25,000 into Netflix's (NASDAQ: NFLX) initial public offering would have rewarded you handsomely.
There's no way to go back to the 2002 IPO, when shares were offered at $15 each ($0.12 on a split-adjusted basis), but we can evaluate Netflix's prospects going forward to see if a similar opportunity exists today.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Let's look at a few of the new monetization avenues the streaming giant is exploring, and whether a $25,000 stake in 2026 could eventually turn into meaningful wealth.
The new revenue opportunities
Netflix is known for its massive library of licensed and wholly owned shows and movies, and it continues to invest heavily in this area. But it's increasingly venturing into live events, particularly sports. These live events can be a catalyst for new subscribers, as the sports streaming market is expected to climb from $33.9 billion in 2024 to $68.3 billion by 2030, according to Grand View Research. It currently shows weekly WWE Raw wrestling matches, and in May, it will stream both a mixed martial arts match between Ronda Rousey and Gina Carano and the Canadian Grand Prix motor racing event.
Another source for new revenue is through its Netflix House, which has locations in Dallas and Philadelphia. The concept has been compared to Dave & Buster's in reviews I've seen, but with Netflix-themed food, games, and merchandise. If the concept proves successful, it could be an opportunity to expand even further by taking a page from the Walt Disney playbook and creating actual theme parks with show- and movie-themed rides and venues.
It also has a gaming division, which the company seems intent on using primarily to engage Netflix subscribers at the moment, though it could eventually focus more on monetization. It's also diving deeper into video podcasts, which could also be a revenue generator through sponsorships and advertisements.
Companies aren't growth stocks forever
Netflix was once a young, scrappy company that disrupted the video rental industry. There's a lot that could have gone wrong with an investment over the years, but those who recognized the potential and hung on captured the reward. Today, it still has opportunities for revenue growth through the endeavors mentioned above. But the difference between now and then is that it is a mature operator, and its revenue growth will be more incremental than explosive.
The math doesn't suggest a $25,000 investment today could ever realistically turn into $1 million or more in any reasonable amount of time. If you do plan to hold on for the long term, however, investing that amount can still generate a meaningful gain that you can pass down to a family member.
The key for the long term is whether Netflix will execute on turning its live streaming, video podcasting, gaming, and Netflix House into substantial revenue that eventually turns into profitability. It can get there, but it still may be a little bit of a rocky road in the short term, after a first-quarter 2026 report recently disappointed investors. As long as investors are patient and realistic, Netflix remains a worthwhile investment consideration.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 26, 2026.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Could a $25,000 Investment in Netflix Still Offer Generational Wealth?

Key Points
Netflix plans to purchase $25 billion worth of stock.
The buyback wasn't enough to move the stock price.
The streaming giant has some revenue opportunities ahead, as well as challenges.
When Netflix (NASDAQ: NFLX) decided not to pursue a deal to acquire assets from Warner Bros. Discovery, many shareholders wondered about updates on the company's stock buyback plans.
It was only fair to wonder, given that the streaming giant said it would continue its buyback program in February after it was no longer pursuing a deal with Warner Bros.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The Netflix board recently authorized $25 billion in stock buybacks, in addition to the $6.8 billion remaining under a plan from December 2024. That offered clarity, but it wasn't enough to move the stock price.
The earnings report overshadows the buyback announcement
Netflix recently reported its earnings results for the first quarter of 2026 earnings, which ranged from underwhelming to concerning for some investors. Its guidance didn't quite meet analysts' expectations for Q2 2026, and it was revealed that Netflix co-founder Reed Hastings will step down from the board in June.
The $25 billion buyback may have seemed like welcome news, but with everything else going on, in terms of the stock price's response, the update was largely shrugged off.
What to consider before making an investment decision
Netflix is in the midst of a shift from a young disruptor with explosive revenue growth potential to a veteran operator. Sales growth opportunities still exist, but it becomes increasingly harder to move the needle when you're a $390 billion company.
It may take time for investors to reset some of their expectations. For the rest of 2026, the streaming giant may rely more on ad revenue and subscription growth for sales than the market may want to see. Without any significant earnings beats or forecast boosts, the stock price will likely be stuck in a choppy trading pattern.
For the long-term investor, Netflix's pursuit of everything from video podcasting to live events offers potential revenue growth opportunities. It'll just require conviction, patience, and time to see if the management team executes on turning opportunities into meaningful revenue that eventually turns into profit.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 25, 2026.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

A $25 Billion Buyback, Even Bigger Expectations: Netflix Faces Investor Doubts

Key Points
Recessions can only be determined in hindsight, and they usually involve weaker consumer spending.
As a staple of the entertainment budget in most households, Netflix might actually thrive in a mild downturn.
However, a severe recession could result in the company's revenue and subscribers declining.
Netflix (NASDAQ: NFLX) shares have climbed a tremendous amount over the years. That makes it easier for investors to ignore any downside scenarios that could interrupt what has been a jaw-dropping ascent. The smartest investors, however, are always thinking about what could go wrong.
How might this streaming stock perform in a mild recession, and in a severe one? Let's see.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Consumer spending has a big impact on the economy
Any seasoned investor knows that recessions are a normal part of the economic cycle. Economies are made up of individual and corporate decisions. And when things get to extreme levels -- indicated by excessive debt, unsustainable growth, and investor exuberance -- the system can quickly reset.
The result is a recession. This is defined technically as two straight quarters of negative GDP growth, so people don't generally know that that they're in one until after the fact. The last time the U.S. economy experienced declining gross domestic product (GDP) was during the onset of the COVID-19 pandemic. Due to the widespread disruption caused by this black-swan event, the National Bureau of Economic Research labeled the period a recession, even though it lasted much less than two quarters.
Before this was the Great Recession, which stemmed from the subprime mortgage crisis, and lasted from 2007 to 2009.
Because consumer spending represents almost 70% of the U.S. economy, and consumer confidence is at an all-time low, some of the investment community is starting to fear that a recession is imminent. Throw in worries about ongoing geopolitical tension and the impact artificial intelligence (AI) might have on the labor force, and it's easy to be fearful.
These concerns alone can become a self-fulfilling prophecy. They could push households to cut back spending, which in turn could result in a recession.
A mild recession could be a boon for the streaming pioneer
Let's imagine that over the next six to 12 months, the U.S. sees a small uptick in unemployment and a slight reduction in consumer spending and corporate investment. This would be considered a mild recession. From a fundamentals perspective, I believe Netflix will hold up well, and might even flourish, in this situation. The stock price might drop with the overall market, though.
In order to save money, consumers might decide to go out less, which can negatively affect restaurant and travel stocks, among others. But as people spend more time at home, they often watch more streaming content to entertain themselves. Here's where Netflix can win new customers.
The early-pandemic recession, which could be considered either mild because it was so short or severe since it happened so quickly, was a unique situation -- people were encouraged to stay at home. This created the perfect environment for Netflix to thrive, since it was a top home-entertainment choice. The business posted revenue growth of 27% in the first half of 2020, with net new subscriber additions of 26 million during those six months.
The business could struggle in a drastic economic downturn
A severe recession would include surging unemployment, sizable declines in consumer spending and business investment, and maybe even bankruptcies. The Federal Reserve would have to step in and inject liquidity into the system to keep the economy going.
In this adverse scenario, I'd expect Netflix to struggle. And the share price, along with the rest of the stock market, would surely fall dramatically.
The streaming platform would be viewed less as a need-to-have subscription and more as a consumer discretionary offering. It doesn't help that 62% of streaming customers believe there are too many viewing options, according to research from The Motley Fool. There are also numerous free (ad-supported) streaming services that could fill the gap.
To be fair, though, Netflix would be able to handle it financially if memberships and revenue fell over any single quarter or year. The company is very profitable, posting a 24% net profit margin in 2025. And its interest coverage ratio, measured as operating income relative to interest expense, was nearly 17 last year. That's an extremely impressive cushion to have.
If Netflix really needed to conserve cash, management could pause share repurchases. Plus (probably as a last resort), it could tap capital markets for liquidity.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 25, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Netflix Could Perform in a Mild vs. a Severe Recession

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $225.9 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 538,700,000 to 540,450,000). Among the largest underlying components of IVW, in trading today Netflix Inc (Symbol: NFLX) is up about 0.4%, Intuitive Surgical Inc (Symbol: ISRG) is trading flat, and Welltower Inc (Symbol: WELL) is up by about 1.9%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $90.5562 per share, with $129.14 as the 52 week high point — that compares with a last trade of $128.51. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Project your dividend income with confidence: Income Calendar tracks your income portfolio like a personal assistant.
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
ARK Investment Management Top Holdings
BCO Options Chain
Cheap Consumer Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	42.57 15.77
Price/Sales	10.38 0.95
P/B	17.09 1.60
P/FCF	49.45 11.91

Indicator	TTM Median
ROE	43.25 13.20
ROA	20.36 5.09
ROI	27.81 7.51
Net Worth	467.88 0.77
Quick Ratio	0.00 0.93
Current Ratio	1.19 1.20

Indicator	TTM Median
Net Profit Margin	24.30 10.15
Operating Margin	29.50 14.02
Gross Margin	48.49 55.93
Return on tangible equity	43.25 29.36

Indicator	TTM Median
EPS	0.70 0.28
EPS Forecast	0.76 0.23
Revenue	12.05B 89.50M
Gross Profit	5.53B —
EBITDA	7.81B —

Netflix, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue