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.

Key Points
Despite being the leader in streaming entertainment, Netflix’s expensive valuation can’t be ignored.
In addition to soaring streaming profits, Disney’s lower forward price-to-earnings ratio can be a winning combination.
Netflix (NASDAQ: NFLX) shares have skyrocketed 25,740% in the past 20 years (as of March 12). Investors looking to score monster returns might look at this kind of performance and consider buying this streaming stock.
However, Walt Disney (NYSE: DIS), whose shares trade 51% below their peak, has a convincing argument for investment as well. Which of these stocks will make you richer going forward?
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 »
Netflix dominates, but the valuation reflects this position
With its massive subscriber base of 325 million and 2025 revenue of $45 billion, Netflix is a dominant force in the streaming market. Investors who got in years ago have reaped the rewards.
Now it's time to be critical of the valuation. Shares trade at a forward price-to-earnings (P/E) ratio of 30, which isn't cheap, especially with the likelihood that growth will decelerate in the future.
Disney shares are cheaper, and streaming profits are soaring
From a valuation perspective, the House of Mouse wins the battle. Investors can buy Disney stock at a forward P/E multiple of 15, representing a 50% haircut to Netflix.
Disney's entertainment streaming segment (including Disney+ and Hulu's streaming operations) has quickly become significantly profitable. Operating income skyrocketed 828% year over year in fiscal 2025 (ended Sept. 27, 2025). The leadership team expects this figure to soar again in fiscal 2026.
Moreover, Disney has a robust experiences segment that provides diversification from a financial perspective.
Investors buying in now who choose Disney shares, instead of Netflix, are positioned to produce a better return over the next five years.
Should you buy stock in Walt Disney right now?
Before you buy stock in Walt Disney, 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 Walt Disney 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% 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 March 15, 2026.
Neil Patel 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.

Netflix vs. Walt Disney: Which Stock Will Make You Richer?

Key Points
Netflix walked away from the Warner Bros. Discovery deal, which was the right financial decision.
The company’s ad revenue is projected to double in 2026.
Investors shouldn’t ignore the key risks that center on the streaming stock’s valuation and industry competition.
It's been an eventful few months for Netflix (NASDAQ: NFLX). The entertainment juggernaut was tied up in acquisition talks with Warner Bros. Discovery. But it recently chose to leave the negotiating table because of unattractive financial terms.
The streaming stock popped 14% on this welcome news in late February. Netflix can now turn its focus back on its business. That's a good thing, but can its share price double and go to $200?
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 »
Dominating the streaming landscape
I think the market is correct in cheering for the decision not to pursue the Warner Bros. Discovery deal. Netflix would have had to take on a massive amount of debt. For a business in such solid financial shape, this presented a notable risk. And from an operational perspective, integrating the assets of Warner Bros. Discovery added uncertainty.
Netflix has been performing at a very high level. And the leadership team can turn its attention to keeping the momentum going. The company expects to generate $51.2 billion (at the midpoint) in revenue this year, which would be 13% higher than 2025's total. Ad sales are projected to double to $3 billion in 2026.
Profitability isn't an issue for the scaled streaming platform. Netflix posted a stellar 29.5% operating margin in 2025. That key metric has been improving dramatically as the business has gotten bigger. In 2020, the operating margin was 18%.
Risks Netflix investors need to pay close attention to
While I believe that $200 per share is a probable outcome for Netflix, I wouldn't be surprised to see it happen on a longer time frame than the bulls hope for, perhaps over seven years.
Valuation remains a potential cause for concern. The stock trades at a price-to-earnings ratio of 38.4. There's a valid argument that Netflix warrants that type of multiple. However, this is a mature business whose growth prospects will likely normalize in the future.
Another risk factor relates to the competitive landscape. Netflix's engagement, measured as a share of TV viewing time in the U.S., increased from 7.5% in Q4 2022 to 8.8% in January 2026. At the same time, the streaming industry overall jumped from 24.8% to 47%. What's more, Alphabet's YouTube currently has a 42% higher share than Netflix. The tech titan's streaming platform is commanding more attention on TVs.
For Netflix's stock price to effectively double to $200, it will need to overcome the valuation and competitive headwinds. Given how extremely well the shares have fared in the past, though, investors probably continue to have high hopes. It's best to temper expectations.
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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% 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 March 15, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, 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.

Is Netflix Stock Going to $200?

Key Points
In late February, Netflix walked away from a proposed $82.7 billion acquisition of Warner Bros. Discovery assets.
After walking away from the deal, the company resumed its share repurchase program.
Trading at a premium valuation, the stock is priced for near-perfection despite intensifying competition.
Shares of streaming leader Netflix (NASDAQ: NFLX) have soared recently, and for a good reason: management walked away from a massive, risky acquisition.
When the company officially abandoned its pursuit of Warner Bros. Discovery's studio assets -- a deal previously valued at $82.7 billion -- the stock jumped; Wall Street cheered the move, viewing it as a clear sign of capital discipline.
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 »
Walking away meant avoiding a complex integration and dodging a massive financial commitment. More importantly, it meant Netflix could immediately resume its share repurchase program, supported by the impressive $9.5 billion in free cash flow it generated in 2025.
Combined with the company's strong underlying business performance, the canceled deal bolstered the bull case.
But is the stock a buy today?
The hidden warning in the deal
It is easy to celebrate Netflix for walking away from an $82.7 billion megadeal. But investors need to ask a more fundamental question: Why was the company considering a transaction of that scale in the first place?
The answer points directly to the stock's biggest risk: intense competition.
The fact that the company even considered the Warner Bros. deal suggests how important Netflix believes it is to continue aggressively spending on content to defend its turf.
And Netflix has always been open about this environment.
"We have long stated that we compete against all activities people engage with during their leisure time, including, but not limited to, other streaming services, linear television, social media, open content platforms, video gaming, and concerts to name just a few," Netflix explained during its fourth-quarter shareholder letter. "As a result, the entertainment business has always been and remains fiercely competitive with strong players like the US media conglomerates, large technology companies, and local broadcasters and media companies outside the US."
It is competing for absolute share of screen time against anyone vying for consumer attention, including scrolling on social media and viewing user-generated content on Alphabet's YouTube.
In a landscape where attention is increasingly fragmented, acquiring and retaining subscribers requires a constant, expensive drumbeat of massive global hits. A sprawling content library is not a luxury; it is a baseline requirement for survival. And Netflix's flirtation with the Warner Bros. studio assets reveals just how hungry the company is for established intellectual property to feed that machine.
Indeed, in the same press release in which Netflix announced its decision to walk away from Warner Bros., the company said it plans to invest $20 billion in films and series this year.
Priced for perfection
With the stock's recent rally, the valuation leaves very little cushion if that competitive pressure starts to weigh on growth.
As of this writing, Netflix trades at a price-to-earnings ratio of about 37. At this multiple, investors are not just paying for a strong business today; they are pricing in the assumption that Netflix will continue to compound its revenue at a double-digit rate while simultaneously expanding its profit margins for years to come.
Of course, Netflix is currently delivering on those high expectations. The company expects its operating margin to expand from 29.5% in 2025 to 31.5% in 2026.
There is also a secondary catalyst to consider: the company's fast-growing advertising business. Management noted that ad revenue rose more than 150% in 2025 to over $1.5 billion, and the company expects this to roughly double in 2026. While promising, however, this segment is still a relatively small slice of the overall revenue pie; Netflix's total 2025 revenue was $45.2 billion.
And there are already signs that overall growth could moderate. Management's guidance for the first quarter of 2026 calls for revenue of $12.2 billion. That 15.3% year-over-year growth -- a clear deceleration from the 17.6% top-line growth it posted in the fourth quarter. And, for the full year, the company is guiding for revenue to increase 12% to 14% -- or just 11% to 13% in constant currency.
If competition forces Netflix to keep content spending elevated, or if pricing power softens as consumers consolidate their streaming subscriptions, the price-to-earnings multiple the market is willing to assign the company could come down over time.
Ultimately, Netflix is an exceptional business with a highly disciplined management team. The decision to walk away from the Warner Bros. deal and continue share repurchases was probably the right one.
But given the intense competition for consumer attention and the high expectations built into the stock's current valuation, I think Netflix is more of a hold than a buy right now.
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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% 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 March 14, 2026.
Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, 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 Has Soared Since It Walked Away From Warner Bros. Time to Buy?

Key Points
Alphabet has performed very well since its stock split, generating a fantastic return of 167%.
Netflix has struggled in the months following its stock split, largely due to its bidding war with Paramount Skydance.
Nvidia has outperformed the S&P 500 since its split in June 2024.
Which is worth more: a $100 bill or 400 quarters? Well, from a purely monetary perspective, there is none -- they have the same intrinsic value. Yet, their practical values are not equal. After all, paying a sizable bill with small change is hardly the way to win friends at the local pub. Similarly, a $100 bill won't do you much good at a vending machine that only accepts $1, $5, or $10 bills.
In other words, having the right denomination matters -- and the same is true with stocks.
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 »
When a company splits its stock, the company's overall value doesn't change -- it's just divided differently. Even though stock splits don't change a company's underlying fundamentals, they can shift retail investors' perceptions of a stock, often making it more appealing.
With that in mind, let's review how five high-profile stocks have performed since their historic stock splits.
1. Tesla
First up is Tesla (NASDAQ: TSLA). Tesla performed a 3-for-1 stock split on Aug. 25, 2022.
Tesla stock traded slightly under $300 per share in the wake of the split. They now trade at about $400 per share. Consequently, the stock is up approximately 37%, equating to a compound annual growth rate (CAGR) of 9.3% since the split. That's slightly below the S&P 500, which has generated a CAGR of 16.5% over the same period.
Looking ahead, with its stock trading at $400 per share, some investors are wondering whether another stock split is on the horizon for the company.
2. Alphabet
Next, there's Alphabet (NASDAQ: GOOG, GOOGL). Alphabet, the parent company of Google, last performed a stock split on July 15, 2022. Alphabet shares split 20-for-1, reducing the per-share price from more than $2,250 to around $113.
In the intervening years, Alphabet stock has vastly outperformed the benchmark S&P 500, delivering a staggering total return of 167% versus 84% for the index. Its CAGR of 30.1% is nearly double the S&P 500's 18.2%.
Of all the stocks on this list, Alphabet has performed the best since its split. Will it continue to roll on, or will the company's massive artificial intelligence (AI) investments weigh on the stock going forward?
3. Netflix
On the other side of the ledger, there's Netflix (NASDAQ: NFLX). The streaming giant is the most recent company on this list to deliver a stock split. The company performed a 10-for-1 split on Nov. 17, 2025, just about five months ago. The price of a single Netflix share fell from over $1,000 to about $110.
However, since the split, the company and its stock have faced turmoil. Netflix entered an expensive bidding war with rival Paramount Skydance for Warner Bros. Discovery. Paramount ended up winning the fight, but both companies -- and their stocks -- came away with some bruises.
Shares of Netflix are down 10% since its stock split. Yet, the stock is up about 20% since it lost its fight with Paramount -- indicating how much the market disliked the Warner Bros. deal in the first place.
At any rate, some investors are asking whether Netflix can continue to grow revenue through price increases, or whether consumers will balk at increased monthly costs.
4. Amazon
Next, we turn to Amazon (NASDAQ: AMZN). On June 6, 2022, the company carried out its first split in more than 20 years. Amazon performed a 20-for-1 split, reducing the price of a single share from about $2,500 to $125.
Since then, Amazon stock has moved largely in tandem with the S&P 500. Shares have advanced by 71%, which closely mirrors the S&P 500's 73% rally over the same period.
Looking ahead, Amazon is working on innovative projects, including bipedal robots and Amazon Leo -- the company's satellite internet service meant to rival SpaceX's Starlink.
5. Nvidia
Finally, we come to Nvidia (NASDAQ: NVDA). The world's largest company by market cap split its stock on June 10, 2024, executing a 10-for-1 stock split. The price of a single share dropped from about $1,200 to $120.
Overall, Nvidia stock has outperformed the broader market, as measured by the S&P 500, since its split. Shares are up about 46%, as compared to 29% for the benchmark index.
Clearly, the AI revolution has propelled Nvidia to become the largest company in the world, but can the company maintain its enormous market share amid rising competition in the AI chip market?
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $467,544!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $47,627!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $514,000!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
Jake Lerch has positions in Alphabet, Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Netflix, Nvidia, Tesla, 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.

Stock-Split Follow-up: How Nvidia, Alphabet, Amazon, Netflix, and Tesla Have Performed Since Their Historic Splits

Key Points
Meta Platforms' strong ad business is only getting better thanks to AI.
Netflix still dominates streaming and is slowly entering new, potentially lucrative niches.
Over the past decade, the tech-heavy Nasdaq Composite has run circles around the two other major U.S. market indexes. That suggests that some of the best growth stocks to buy and hold, at least over the past 10 years, were in the tech sector. Indeed, tech leaders such as Meta Platforms (NASDAQ: META) and Netflix (NASDAQ: NFLX) delivered strong returns over this period. And the best part: Both stocks still have what it takes to beat the market through 2036. Here is why Meta Platforms and Netflix are still worth investing in.
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 »
1. Meta Platforms
It's hard to find a company with an ecosystem of users as deep as that of Meta Platforms. The company boasts 3.58 daily active users across its social media platforms. Meta makes most of its money from advertising. And in the next decade, the company's business should remain centered around that. Meta Platforms' benefits from deep network effects across its social media empire, making it challenging for any competitor to steal most of its users. Meanwhile, the tech giant is still growing engagement on its apps, largely thanks to artificial intelligence (AI)-powered algorithms.
Meta Platforms is also helping advertisers with a host of AI tools that make it easier to create campaigns (from defining a target audience to generating images and measuring performance). A deeper, more engaged user base and better, more effective ad campaigns should lead to consistent revenue and earnings growth for Meta Platforms through the next decade. The company could also slowly ramp up other growth opportunities. Meta Platforms' significant investments in AI could pay off beyond its impact on its advertising business, perhaps through paid subscriptions, AI-powered commerce, and more. In short, the company is well-positioned to ride the AI tailwind and, once again, beat the market over the next 10 years.
2. Netflix
Although a lot has changed for Netflix over the past decade, at least one thing hasn't: The company's goal to replace cable television. It has made significant progress, but there is more work to be done. According to some data, streaming accounted for 47% of TV viewing time in the U.S. in January. The industry is less penetrated in many other countries. So, the global opportunities for Netflix remain massive, especially given that it now has an ad-supported tier with rapidly growing ad sales.
Can Netflix still dominate streaming, even as the industry has become far more competitive? Yes, it can. The company's brand-name and time-tested strategy of creating outstanding content should help it attract more viewers while increasing engagement among its existing ones. Netflix will also benefit from entering new markets. The company is making a push into long-form video podcasts, which should cost less than original TV and movies while still delivering on engagement.
Netflix is also slowly entering the world of sports streaming, another niche that could attract plenty of new eyeballs to the company's ecosystem. For those reasons (and many more), my view is that Netflix hasn't peaked yet. The company's prospects through 2036 look bright.
Should you buy stock in Meta Platforms right now?
Before you buy stock in Meta Platforms, 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 Meta Platforms 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 $508,607!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 188% 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 March 13, 2026.
Prosper Junior Bakiny has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and 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.

2 Tech Stocks Built to Compound for a Decade

Key Points
Whether it’s to aid in visual effects or to support fresh advertising capabilities, one dominant streaming platform is leveraging AI.
A struggling sportswear giant is mixing AI with feedback from elite athletes to support innovative shoe designs.
AI facilitates the matching of drivers and riders, while aiding in dynamic pricing, for the leader in mobility and delivery.
Artificial intelligence (AI) has been a hot buzzword in the markets and the economy. Incredible amounts of capital are being invested in computing resources to build the infrastructure. However, the tools that are already available are benefiting companies that decide to be proactive and figure out ways to enhance their performance in this new technological age.
For stock market investors, it might be a good idea to start identifying the businesses that are choosing to adapt. Here are three examples of industry-leading companies that are leveraging AI capabilities in unique ways.
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 »
1. Netflix
The first business on this list is Netflix (NASDAQ: NFLX), a dominant force in the streaming entertainment market. It ended 2025 with 325 million subscribers. And it reported 16% revenue growth and a 29.5% operating margin last year, showcasing its financial success.
Netflix has long used AI and machine learning to improve its recommendation algorithm. There is so much content on the platform, it can be overwhelming for viewers. It helps that the underlying technology is there to assist them with figuring out what to watch. Of course, this is bolstered by the immense amount of viewer data that Netflix collects.
The company uses AI in other ways, too. In Happy Gilmore 2, released in July 2025, the technology was used to make characters look younger. It makes sense that AI can be used in visual effects.
Netflix launched its ad-based subscription tier in November 2022, and targeting capabilities are improving with the help of AI. "In 2025, we began testing new AI tools to help advertisers create custom ads based on Netflix's intellectual property, and we plan to build on this progress in 2026," the Q4 2025 shareholder letter reads.
2. Nike
Nike (NYSE: NKE) is next on this list of companies working with AI. The leading sportswear enterprise commands significantglobal marketshare, supported by its strong brand. However, its shares have been wildly disappointing amid ongoing turnaround efforts. They currently trade 68% below their peak (as of March 9)
For Nike, AI is in the DNA. Consumers receive individualized product recommendations when shopping, powered by AI. Nike's marketing strategies, supply chain, and inventory management are impacted by AI. And the company acquired AI start-up Celect in 2019 to help with demand forecasting.
In April 2024, the business unveiled the Nike A.I.R. (Athlete Imagined Revolution) project. The company works with top athletes, like Kylian Mbappé and Victor Wembanyama, to create unique and innovative footwear designs. Generative AI allows Nike to think outside the box.
It's encouraging for investors to see Nike focusing on these kinds of tech-driven initiatives. However, that focus isn't exactly helping the business right now, as the financials have been disappointing. Nike reported a 10% year-over-year revenue dip in fiscal 2025 (ended May 31, 2025), while diluted earnings per share tanked 42%.
3. Uber
And finally, we turn our attention to Uber (NYSE: UBER). The mobility and delivery stock has been a huge winner, rising 117% in the past 36 months. Its growth is impressive, with revenue and operating income up 18% and 99%, respectively, year over year in 2025. And its 202 million monthly active users have made it a partner of choice for autonomous vehicle enterprises.
Uber AI Solutions is a rapidly growing segment that caters to enterprise customers. As it scaled, Uber developed certain tech capabilities to manage its own operations. Enterprises can now pay for these AI features, for tasks like data collection and product testing, for their own use.
Before this latest launch, Uber was working with AI to improve its platform for all stakeholders. For example, rider/driver matching, pricing, customer support chat, and estimating arrival times are all powered by AI.
CEO Dara Khosrowshahi said on the Q3 2025earnings callthat it's a strategic priority for "Generative AI embedding intelligence across Uber to enhance productivity, optimize our operations, and deliver more personalized consumer experiences."
Netflix, Nike, and Uber aren't shying away from AI. While this doesn't just assume their stocks are going to be winners in the future, it's a sign that their management teams are embracing this exciting technology.
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 $511,735!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,140,464!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 191% 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 March 12, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Nike, and Uber Technologies. 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.

3 Industry-Leading Consumer Companies Using Artificial Intelligence (AI) in Unique Ways

Key Points
Adobe’s shares have plummeted by 38% over the past year due to concerns about competition from AI.
ServiceNow expects continued growth this year, yet the stock is trading 50% off its highs.
Netflix has captured less than half of its addressable market, but the stock is down 26% from its highs.
Businesses with a long history of consistent growth through subscription-based models never appear cheap. These businesses are highly valued by investors because customers pay recurring revenue to access their services throughout the year.
However, the market is offering investors the opportunity to buy top tech stocks at a discount right now. If you're looking to invest $1,000 right now, here's why you might consider scooping up shares of Adobe (NASDAQ: ADBE), ServiceNow (NYSE: NOW), 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 »
1. Adobe
Adobe has been the dominant software provider for creative and advertising professionals for many years. But the stock has sold off on fears that artificial intelligence (AI) will make it easier to create software tools that replace its offering. Why spend money on a subscription for Adobe when users can create and edit images using Google's Gemini? The stock is down 38% over the past year, and is currently trading at a forward price-to-earnings (P/E) ratio of 12.
Wall Street is pricing Adobe like it's going out of business, but the company's performance tells a different story. Adobe continued to report growing demand for its products last quarter. In fact, it is sitting on over $22 billion of remaining performance obligations (RPO), up 13% year over year. Management credited its growth last year to "strong global demand" for its AI solutions across enterprise and consumer.
Most importantly, RPO grew faster than revenue, which grew 10% year over year last quarter. This shows that Adobe is seeing bigger deals. It suggests that enterprise customers are responding positively to Adobe's new AI capabilities in its products, like Acrobat AI Assistant and GenStudio.
Adobe's subscription-based business generates steady revenue and robust cash flows. Still, investors should probably wait until after the company's earnings report on March 12, just to make sure there are no negative surprises. If revenue and RPO growth remain on trend with previous quarters, it would suggest the stock is undervalued and worth starting a small position in.
2. ServiceNow
The rise of AI agents is also weighing on ServiceNow's shares, the workflow automation leader. The stock is down 50% from its previous peak, yet management is still guiding for around 20% year-over-year revenue growth for the current fiscal year.
ServiceNow helps companies automate tasks such as IT help desk tickets and onboarding new employees. But where it adds value is acting as the control layer of AI. It creates a data trail to monitor and put guardrails around what the AI is doing. These capabilities add tremendous value to companies that are using AI in their workflows.
Demand is not weakening but remaining strong. ServiceNow's revenue grew at a compound annual rate of 22% over the last three years, and it just posted 21% year-over-year growth in subscription revenue in the recent quarter. Renewal rates were 98% -- consistent with historical trends.
Management's guidance for subscription revenue growth of approximately 20% in 2026 suggests the stock's sell-off might be overdone. Its current forward P/E of 30 is well below the 54 average over the past three years.
3. Netflix
Netflix has delivered excellent returns over the past decade. There is still significant growth runway, yet the stock is trading 26% off its recent highs, offering an attractive entry point for a starter position.
The stock rebounded recently on news that management was walking away from its Warner Bros acquisition offer. This shows a disciplined management team that won't chase growth at any price. At the recent Morgan Stanley Technology, Media, and Telecommunications Conference, CFO Spence Neumann said, "This was an opportunity that was nice to have at the right price, not a must-have at any price."
Netflix is walking away because it doesn't need to acquire growth. While most streaming subscribers believe there are too many options, according to research from The Motley Fool, Netflix is one they are not giving up. The company's revenue grew 17% year over year in the fourth quarter, and its trailing 12-month free cash flow climbed to $9.4 billion.
The opportunity is still significant. Netflix has captured less than 50% of the estimated 800 million connected households worldwide. The stock's forward P/E of 31 may not look cheap, but it is a great value for a subscription-based business with 325 million customers. It's expected to grow earnings at an annualized rate of 22% over the next several years, according to the Wall Street consensus.
Should you buy stock in Adobe right now?
Before you buy stock in Adobe, 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 Adobe 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 $522,791!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,132,678!*
Now, it’s worth noting Stock Advisor’s total average return is 952% — a market-crushing outperformance compared to 191% 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 March 12, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Alphabet, Netflix, ServiceNow, and Warner Bros. Discovery. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. 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.

Have $1,000? These 3 Stocks Could Be Bargain Buys for 2026 and Beyond

Key Points
Disney's fiscal first-quarter streaming operating income surged 72% year over year to $450 million.
The company's recent deal to acquire NFL Network also more closely aligns the NFL's interests with ESPN's.
Disney still carries roughly $41 billion in net debt, limiting its financial flexibility against deep-pocketed tech rivals and streaming leader Netflix.
Shares of The Walt Disney Company (NYSE: DIS) have been hovering near a historically modest valuation. As of this writing, the stock trades at about 15 times earnings.
For a sprawling entertainment empire with unmatched intellectual property, this price might seem like a bargain. But the hard part about investing is that a cheap stock is often cheap for a reason.
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 »
Still, shares are trading at a significant discount to the S&P 500. So, is Disney stock a buy?
A strong bull case
To be fair, there is a lot to like about Disney's underlying business right now.
The company's streaming segment, which was burning billions just a few years ago, is finally scaling into a profitable operation.
In Disney's fiscal first quarter of 2026 (ended Dec. 27, 2025), its direct-to-consumer streaming business posted operating income of $450 million -- up an impressive 72% year over year. And further bolstering the bull case is Disney's Experiences segment, which includes its theme parks. The segment generated record quarterly revenue of $10.0 billion in fiscal Q1, alongside $3.3 billion in operating income -- a 6% year-over-year increase.
And then there is Disney's ESPN.
The sports giant remains a uniquely powerful asset, and management recently took a major step to secure its durability.
Disney recently closed a landmark deal with the National Football League (NFL) in which ESPN acquired the NFL Network and certain distribution rights to NFL RedZone channel.
In exchange, the NFL took a 10% equity stake in ESPN -- an equity stake that aligns the two companies' long-term interests.
"Commissioner Goodell and the NFL have built outstanding media assets," explained Disney CEO Bob Iger when discussing the transaction when the deal was first announced last August, "and these transactions will add to consumer choice, provide viewers with even greater convenience and quality, and expand the breadth and value proposition of Disney's streaming ecosystem."
By tightly aligning the league's financial interests with ESPN's success, Disney has significantly enhanced the durability of its sports segment.
A strong bear case
But underneath these bright spots, Disney faces structural challenges that help explain its stock's discounted valuation.
The biggest constraint is the intensely competitive landscape in both its studio and streaming businesses.
Disney isn't just competing with legacy media companies anymore. It is fighting deep-pocketed tech giants like Amazon, which fund their content budgets and streaming platforms with highly lucrative, cash-gushing core businesses. And even Alphabet's YouTube competes for entertainment attention.
These tech rivals have far superior balance sheets, allowing them to treat streaming as a loss leader or bundle feature rather than a stand-alone profit engine.
Then, of course, there's streaming leader Netflix (NASDAQ: NFLX), which boasts a much healthier balance sheet than Disney and global reach, with more than 325 million paying subscribers. In addition, Netflix's consolidated business is growing much faster; the company's revenue rose 17.6% year over year in Q4.
Disney, meanwhile, is operating with a heavily indebted balance sheet. The company is carrying roughly $41 billion in net debt.
This massive debt load requires significant interest payments, consuming capital that could otherwise be used for content investment or shareholder returns.
In its fiscal first quarter alone, Disney recorded an interest expense of $443 million.
And this comes at a time when the company is investing heavily to build out its streaming business, and its bottom line is struggling. Despite a 5% year-over-year increase in total first-quarter revenue to nearly $26 billion, Disney's total segment operating income decreased 9%.
This ultimately led to adjusted earnings per share declining 7% year over year to $1.63.
Wait for a better price
When evaluating a stock, it is crucial to separate the quality of the company's assets from the reality of the investment itself.
Disney boasts incredible brands, a world-class parks division, and a newly fortified sports business, making it worth a spot on any investor's watch list.
But the stock's valuation of 15 times earnings doesn't leave much margin of safety for a business facing intense competition and carrying over $40 billion in net debt.
For a company operating with these constraints, I'd like to see a valuation closer to 13 times earnings before considering buying the stock.
At that price, the risks would be more appropriately baked into the stock.
For now, I'd stay on the sidelines.
Should you buy stock in Walt Disney right now?
Before you buy stock in Walt Disney, 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 Walt Disney 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 $522,791!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,132,678!*
Now, it’s worth noting Stock Advisor’s total average return is 952% — a market-crushing outperformance compared to 191% 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 March 11, 2026.
Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, 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.

Walt Disney Stock Looks Cheap. But Is It a Buy?

Key Points
Investors aren’t happy about Alphabet's AI-related spending. Yet it is one of the few companies seeing its investments pay off.
Smart investors have plenty of good opportunities to pick and choose when to step into a stake in Rocket Lab.
Netflix was outbid by Paramount Skydance in its pursuit of Warner Bros. Discovery, but this may benefit it in the long run.
Is your portfolio ready for a reset? Maybe you need to reload after the recent market shakeup shook you out of a few positions? Whatever the reason, there are always at least some stocks worth buying. If you have $3,000 available to invest that isn't needed to pay down short-term debt or pay off monthly bills, and you need help with your search, you might want to consider these three prospects right now.
Alphabet
Yes, Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) share price is down nearly 14% from its early February peak. Falling short of its fourth-quarter revenue estimates didn't help, but the crux of this weakness is rooted in the company's plans to shell out some serious cash on artificial intelligence infrastructure. The company expects capital expenditures to roll in between $175 billion and $185 billion in 2026, essentially doubling last year's capex investments. For perspective, the company reported revenue of just over $400 billion last year, $132 billion of which was turned into net income.
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 »
What's largely being overlooked here, however, is that Alphabet's artificial intelligence investments are paying off. Not only is Google Cloud's (where its AI results are reported) current growth outpacing that of Amazon's AWS and Microsoft's cloud business, but Google Cloud's revenue improved 48% year over year during Q4, and this arm's operating income grew an incredible 150%. This business is quickly becoming a true powerhouse profit center.
Rocket Lab
Rocket Lab (NASDAQ: RKLB) isn't an easy stock to own. It ebbs and flows a lot, usually pushed around by headlines waffling back and forth between thrilling and devastating. For instance, just last month, the inaugural flight of its medium-lift Neutron rocket, which was first supposed to happen late last year, was once again postponed all the way toward the end of this year. Already struggling, shares slumped even further on the news.
Just recognize the market's pattern of bullish and bearish interest in this ticker. The time to step into it has consistently been when the crowd has turned pessimistic due to the company's developmental delays. The bigger-picture underpinnings for owning a stake in this company haven't changed, though. That is, following the proven developmental success with its smaller Electron rocket, Rocket Lab's medium-lift Neutron will be regularly flying soon enough, putting it into the most important sliver of a space-launch market that Global Market Insights expects to grow by an average of nearly 15% per year through 2035.
Netflix
Finally, consider buying streaming giant Netflix (NASDAQ: NFLX) while you can step into its stock for about 10% less than its price right before December's announcement that it was interested in acquiring most of Warner Bros. Discovery. If that was investors' only problem with Netflix since then, there's still some upside left to reclaim now that the streaming giant has bowed out, yeilding to competing suitor Paramount Skydance.
It's curious. While the majority of investors weren't fans of Netflix's willingness to pay $83 billion for Warner's streaming platform and intellectual property, the crowd is somehow celebrating the fact that Paramount will be paying even more. Maybe they feel like it's a better fit. Or, maybe not.
What is clear is that two of Netflix's rivals are now joining forces, but the buyer is making a massive $111 billion purchase commitment that may never actually be worth anywhere near that price. Not only do some feel like already-dominant Netflix dodged a proverbial bullet, but a pair of its competitors also just tied up a huge amount of liquidity and fiscal flexibility just to do a deal that's likely to create a complicated, unwieldy media giant. That may be Netflix's real win here.
Should you buy stock in Rocket Lab right now?
Before you buy stock in Rocket Lab, 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 Rocket Lab 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 $522,791!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,132,678!*
Now, it’s worth noting Stock Advisor’s total average return is 952% — a market-crushing outperformance compared to 191% 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 March 11, 2026.
James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Netflix, Rocket Lab, 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.

The Best Stocks to Invest $3,000 in Right Now

Key Points
Analysts at MoffettNathanson estimate that YouTube surpassed Disney as the world's largest media company by revenue.
This is part of an ongoing secular shift away from legacy media to streaming.
Disney has been making progress, but there's more work to be done.
The Walt Disney Company (NYSE: DIS) has long been a touchstone of pop culture in the U.S. and around the world. For more than 100 years, the company has been the go-to for audiences, supplying generations of fans with animation, movies, cable and broadcast television, theme parks, cruise ships, merchandise, and more. In fact, for years, the company has held the title of world's largest media company.
In a bit of bittersweet news, reports suggest the company has relinquished its crown.
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 »
Long live the king
Analysts at MoffettNathanson have crunched the numbers and concluded that Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube has become the world's largest media company by revenue, but those claims require a bit of background and context.
In 2025, Disney reported total revenue of $94.4 billion. Excluding sales from its Experiences segment -- which includes resorts, theme parks, and cruises -- media revenue from its entertainment and sports segments clocked in at $60.1 billion.
YouTube, for its part, has long been the world's largest online video-sharing platform. Users can upload, share, and comment on a wide variety of videos, including educational content, music videos, children's programming, cat videos, and more. Viewership has been on the rise for years, with audiences watching more than 1 billion hours of content each day. Creators make money by generating popular content that is supported by advertising.
During the fourth quarter, YouTube hit a new benchmark, as revenue from advertising and subscriptions surpassed $60 billion in 2025. Moreover, the company Alphabet noted that strong adoption of Google One and YouTube Premium drove paid subscribers above 325 million. YouTube generated roughly $40.4 billion in ad revenue last year, so the remaining revenue of nearly $20 billion was subscription revenue.
So is YouTube the world's largest media company? That depends. MoffettNathanson estimated YouTube's revenue at $62 billion last year, edging out Disney's $60 billion. That said, if YouTube hasn't outpaced Disney yet, it likely soon will.
What does this mean for Disney shareholders? Unfortunately, this is part of a long-term trend in the media space. Broadcast and cable television are losing ground to streaming services, and Disney's linear networks have been in secular decline, a drag on the company's results in recent years. Management responded by acquiring Hulu and launching Disney+, but the bulk of its revenue still comes from its legacy media businesses.
In 2025, Disney's revenue grew 3% year over year to $94.4 billion. On the bright side, a focus on spending discipline and cost-cutting paid off, as earnings per share from continuing operations rose 152% to $6.85.
Investors aren't getting their hopes up, as Disney's stock price is essentially flat over the past decade and down about 48% from its peak five years ago. Don't get me wrong. As a longtime Disney shareholder, I'm rooting for the company, but the House of Mouse has its work cut out for it.
Should you buy stock in Walt Disney right now?
Before you buy stock in Walt Disney, 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 Walt Disney 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 $522,791!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,132,678!*
Now, it’s worth noting Stock Advisor’s total average return is 952% — a market-crushing outperformance compared to 191% 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 March 11, 2026.
Danny Vena, CPA has positions in Alphabet, Netflix, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, 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.

Indicator	TTM Median
P/E	36.76 15.39
Price/Sales	9.27 0.97
P/B	15.27 1.51
P/FCF	44.19 12.40

Indicator	TTM Median
ROE	43.25 13.18
ROA	20.36 4.81
ROI	27.81 7.51
Net Worth	418.05 0.80
Quick Ratio	0.00 0.93
Current Ratio	1.33 1.21

Indicator	TTM Median
Net Profit Margin	24.05 10.12
Operating Margin	29.50 14.12
Gross Margin	48.49 56.08
Return on tangible equity	43.25 29.25

Indicator	TTM Median
EPS	0.43 0.28
EPS Forecast	0.55 0.23
Revenue	12.05B 89.50M
Gross Profit	5.53B —
EBITDA	7.81B —

Netflix, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue