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, Inc.

Netflix NFLX shares tumbled 12% following the streaming giant's third-quarter 2025 earnings release, as a one-time Brazilian tax charge overshadowed otherwise solid operational results. The stock decline reflects investor sensitivity to profitability metrics despite the company's sustained revenue momentum and strategic progress in key growth areas, including advertising and live programming.
Q3 Earnings Miss Masks Underlying Strength
NFLX reported third-quarter revenues of $11.51 billion, representing 17% year-over-year growth, which missed the consensus mark by 0.12%. Earnings per share of $5.87 fell significantly short of the consensus mark by 14.8%, primarily due to a $619 million charge related to a Brazilian Supreme Court ruling on technology transfer taxes. Management emphasized that, in the absence of this expense, operating margins would have exceeded the 31.5% forecast, reaching approximately 33%. The charge covers periods from 2022 through the third quarter of 2025, with only 20% attributable to the current year. Importantly, executives stated this matter should not materially impact future results, suggesting the earnings miss represents an accounting adjustment rather than fundamental business deterioration.
The company maintained its full-year 2025 revenue guidance of $45.1 billion, indicating 16% annual growth, though it lowered operating margin expectations to 29% from 30% due to the tax matter. Revenue growth accelerated across all regions, with the United States and Canada posting 17% gains as pricing changes implemented in January took full effect. Netflix raised subscription prices across all tiers at the start of 2025, with the ad-supported plan increasing to $7.99 monthly, the standard plan to $17.99, and the premium tier to $24.99.
The Zacks Consensus Estimate for 2025 revenues is pegged at $45.09 billion, indicating 15.61% year-over-year growth. The consensus mark for earnings is pegged at $25.43 per share, indicating a 28.24% increase from the previous year.
Netflix, Inc. Price and Consensus
Advertising Momentum and Live Content Strategy
A significant bright spot in the quarter was the advertising business, which recorded its best quarter to date and remains on track to more than double revenues in 2025 from a relatively small base. The ad-supported tier now boasts 94 million monthly active users globally, with U.S. members averaging 41 hours of monthly engagement. Management indicated that upfront advertising commitments more than doubled. The company has invested heavily in building its proprietary ad technology platform, partnering with major programmatic players, including The Trade Desk, Google DV360, and Magnite to expand reach and targeting capabilities.
Netflix's expansion into live programming represents another strategic pillar for future growth. The platform successfully launched WWE Monday Night Raw in January 2025 under a 10-year, $10 billion deal, delivering consistent weekly programming. Two NFL Christmas Day games are scheduled for December 2025, featuring competitive matchups, including the Kansas City Chiefs versus the Pittsburgh Steelers. The company has also streamed high-profile boxing events, with the Jake Paul-Mike Tyson fight attracting 108 million global viewers despite technical challenges. These live events drive advertising revenues and reduce subscriber churn while attracting younger demographics.
Technology and Content Innovation Aids Prospects
The streaming leader is aggressively pursuing artificial intelligence integration across its platform. Management confirmed the company is using generative AI for content production, with the Argentine series The Eternaut featuring AI-generated visual effects that reduced production time and costs by a factor of ten. AI applications extend to personalized recommendations, which drive approximately 80% of viewing, dynamic advertising formats, and content discovery features, including a ChatGPT-powered search tool piloted in select markets. Netflix released production guidance for creators to ensure responsible AI implementation while maintaining creative quality standards.
The fourth-quarter content slate includes highly anticipated titles led by the first volume of Stranger Things' fifth and final season launching Nov. 26. Guillermo del Toro's Frankenstein adaptation and Rian Johnson's Wake Up Dead Man: A Knives Out Mystery anchor the film lineup. The series finale of Stranger Things will receive a simultaneous theatrical and streaming release on New Year's Eve, marking a strategic shift toward limited theatrical distribution for select premium content.
Share Price Movement, Valuation, and Competitive Landscape
Netflix shares declined from approximately $1,240 before third-quarter earnings to roughly $1,095, erasing gains accumulated through the summer months when the stock peaked near $1,341 in June. The 12% post-earnings drop reduced year-to-date gains to approximately 25%, though the stock remains up significantly on a trailing 12-month basis.
NFLX’s Share-Price Movement
Image Source: Zacks Investment Research
At current levels, Netflix trades at a forward price-to-earnings ratio of 35.46 times, reflecting expectations for earnings growth to justify the premium multiple relative to the broader Zacks Broadcast Radio and Television industry's average of 28.53 times. Netflix maintains advantages in scale, with more than 247 million global subscribers and market-leading engagement metrics, but must continue executing on content differentiation, advertising growth, and live programming to justify its valuation premium.
NFLX’s P/E F12M Ratio Depicts Stretched Valuation
Image Source: Zacks Investment Research
The competitive landscape has intensified as rivals Amazon AMZN, Disney DIS and Apple AAPL, among others, invest heavily in content and technology. Amazon Prime Video continues expanding its sports programming portfolio, securing exclusive NFL Thursday Night Football rights and adding NBA games to complement its extensive content library, while Amazon Prime Video leverages its parent company's retail ecosystem for commerce integration and Amazon Prime Video recently unveiled AI-powered content discovery features similar to Netflix's initiatives. Disney+ has grown its ad-supported subscriber base by 65% year over year, with 90% of Hulu's 50 million subscribers choosing ad-supported plans, demonstrating Disney's success in the advertising space that Netflix is targeting, and Disney+ benefits from its unmatched portfolio of franchises, including Marvel, Star Wars, and Pixar properties that provide built-in audience loyalty. Apple TV+ pursues a quality-over-quantity strategy with critically acclaimed series, including the upcoming Pluribus from Breaking Bad creator Vince Gilligan and Severance's highly anticipated second season, while Apple TV+ leverages its hardware ecosystem to bundle services, and Apple TV+ focuses on premium storytelling that garners awards recognition.
Investment Outlook and Recommendation
For investors, Netflix presents a nuanced picture. Existing shareholders should maintain positions as the fundamental business remains healthy with multiple growth drivers intact. The advertising business trajectory, live programming expansion, international growth, and technological innovation provide confidence in Netflix's ability to sustain mid-teens revenue growth. However, prospective investors may benefit from patience, waiting for greater clarity on 2026 financial targets and evidence that the advertising business can maintain momentum beyond the initial scaling phase. A more attractive entry point could emerge in early 2026 once full-year guidance provides better visibility into sustainable profitability trends. NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Netflix Plunges 12% Post Q3 Earnings: Buy, Sell or Hold the Stock?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro QQQ (Symbol: TQQQ) where we have detected an approximate $840.3 million dollar outflow -- that's a 2.8% decrease week over week (from 273,750,000 to 266,150,000). Among the largest underlying components of TQQQ, in trading today Netflix Inc (Symbol: NFLX) is trading flat, Costco Wholesale Corp (Symbol: COST) is down about 0.5%, and T-Mobile US Inc (Symbol: TMUS) is lower by about 0.6%. For a complete list of holdings, visit the TQQQ Holdings page » The chart below shows the one year price performance of TQQQ, versus its 200 day moving average:
Looking at the chart above, TQQQ's low point in its 52 week range is $35 per share, with $115.2899 as the 52 week high point — that compares with a last trade of $114.89. 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 ».
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:
Monthly Dividend Paying Stocks
SPI Options Chain
Institutional Holders of NAMM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Outflows: TQQQ, NFLX, COST, TMUS

Have you evaluated the performance of Netflix's (NFLX) international operations for the quarter ending September 2025? Given the extensive global presence of this internet video service, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
Our review of NFLX's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $11.51 billion, showing rise of 17.2%. We will now explore the breakdown of NFLX's overseas revenue to assess the impact of its international operations.
A Look into NFLX's International Revenue Streams
Latin America accounted for 11.9% of the company's total revenue during the quarter, translating to $1.37 billion. Revenues from this region represented a surprise of -5.85%, with Wall Street analysts collectively expecting $1.46 billion. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $1.31 billion (11.8%) and $1.24 billion (12.6%) to the total revenue, respectively.
Asia-Pacific generated $1.37 billion in revenues for the company in the last quarter, constituting 11.9% of the total. This represented a surprise of -2.1% compared to the $1.4 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific accounted for $1.31 billion (11.8%), and in the year-ago quarter, it contributed $1.13 billion (11.5%) to the total revenue.
During the quarter, Europe, Middle East and Africa contributed $3.7 billion in revenue, making up 32.1% of the total revenue. When compared to the consensus estimate of $3.68 billion, this meant a surprise of +0.45%. Looking back, Europe, Middle East and Africa contributed $3.54 billion, or 31.9%, in the previous quarter, and $3.13 billion, or 31.9%, in the same quarter of the previous year.
Prospective Revenues in International Markets
Wall Street analysts expect Netflix to report $11.97 billion in total revenue for the current fiscal quarter, indicating an increase of 16.8% from the year-ago quarter. Latin America, Asia-Pacific and Europe, Middle East and Africa are expected to contribute 12.2% (translating to $1.46 billion), 12.1% ($1.45 billion), and 31.9% ($3.81 billion) to the total revenue, respectively.
For the full year, the company is expected to generate $45.09 billion in total revenue, up 15.6% from the previous year. Revenues from Latin America, Asia-Pacific and Europe, Middle East and Africa are expected to constitute 12.2% ($5.49 billion), 12% ($5.41 billion) and 32% ($14.44 billion) of the total, respectively.
Final Thoughts
Netflix's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Currently, Netflix holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assessing Netflix's Stock Price Movement in Recent Times
Over the past month, the stock has lost 9.6% versus the Zacks S&P 500 composite's 2.5% increase. The Zacks Consumer Discretionary sector, of which Netflix is a part, has declined 2% over the same period. The company's shares have declined 5.5% over the past three months compared to the S&P 500's 7.1% increase. Over the same period, the sector has declined 1.4%
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Unlocking Netflix (NFLX) International Revenues: Trends, Surprises, and Prospects

Key Points
"KPop Demon Hunters" has become Netflix's most viewed movie ever.
The company is teaming up with Mattel and Hasbro to launch multiple lines of toys from the movie.
Netflix could have more ways to monetize the viral sensation.
Netflix (NASDAQ: NFLX) has come to dominate the video entertainment industry, with more than 300 million global subscribers.
However, there's still room for growth and new opportunities for the company. It has long had ambitions of building more of a flywheel-style business model like Walt Disney, which has been able to capitalize on its popular movie franchises and monetize them through its theme parks, consumer products, and live entertainment.
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Netflix has experimented with this, selling some products from series like Stranger Things and experiences inspired by Bridgerton. But it now has its biggest opportunity ever to expand beyond video entertainment with KPop Demon Hunters, the viral children's animated movie. KPop Demon Hunters has become the most-watched movie ever on the Netflix platform, with 325 million views as of its earnings report.
Netflix makes a move for the toy biz
The movie has been a viral sensation for kids and is likely to be a popular choice for Halloween costumes. The buzz is well-timed ahead of the holiday season.
Netflix is trying to take full advantage of the interest in the movie and a soundtrack. It's teaming with Hasbro and Mattel to produce toys, collectibles, games, and other products based on the movie, which features a female K-pop trio that also fights demons.
Mattel will develop a line of products based on the movie that includes dolls, action figures, accessories, and other products. Hasbro, meanwhile, will produce plush toys, electronics, and role-play items, and a KPop Demon Hunters version of Monopoly Deal, a card game.
Mattel stock rose on the news, as the tie-up could be a bigger deal for that company than for Netflix. Mattel is much smaller than Netflix, with a market cap of just $6 billion.
What it means for Netflix
The toy partnership is likely to be Netflix's biggest cash grab in consumer products yet, and it could pave the way to more spin-offs for KPop Demon Hunters. An obvious one would be a live concert tour of songs from the movie. The music has been key to its popularity, and like Disney's animated musicals, is likely to become part of the popular zeitgeist.
For Disney, movies like Frozen have had incredible staying power, continuing to make new fans who were born years after the debut. The same could be true for KPop Demon Hunters, and a sequel could also be in its future.
Whatever happens, investors shouldn't underestimate the potential effect on Netflix's bottom line. The experience is likely to teach it some valuable lessons in building the kind of entertainment empire that Disney has created.
Should you invest $1,000 in Netflix right now?
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Jeremy Bowman has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool recommends Hasbro. 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's Move From Screen to Shelf Could Be a Genius Diversification Play

Key Points
Netflix stock has fallen for three consecutive days since posting its third-quarter results.
There's a problematic trend of the deteriorating market response to Netflix earnings over the past five quarters, but the company just posted its strongest top-line growth in four years.
The catalysts are still there, and Netflix could be cheaper than its forward earnings multiple of 34 may suggest.
The market wasn't impressed by Netflix (NASDAQ: NFLX) after the company kicked off earnings season for streaming services stocks last week. The overall market may have rallied to fresh highs, but Netflix stock plummeted 12% as it sank lower in each of the week's last three trading days.
Like KPop Demon Hunters -- the animated feature with a catchy soundtrack that remains one of the platform's most-viewed movies over the past four months -- Netflix has some demons to vanquish. And like the main protagonist, Netflix is conflicted in the fight.
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Below, I'll take a closer look at last week's report and what seems like an unfair market response. If I'm right, the recovery this week and beyond is going to be golden.
The big picture is a moving picture
Last week was challenging for the pioneer and market leader for premium streaming services as it posted disappointing third-quarter results after Tuesday's market close. Revenue rose 17.2% to $11.51 billion, a smidgeon shy of the 17.3% leap that it was forecasting three months earlier.
The bottom line was a bigger miss, as net income rose 9% to $5.87 a share for the three months ending in September. The company was modeling its per-share earnings to jump 27% for the period.
Zooming in, the headline earnings miss is jarring but not a long-term concern. Netflix points out that one-time hits related to a tax dispute in Brazil were behind the shortfall on the bottom line.
If not for those expenses, the company's margin and results would've gone roughly according to plan. The top-line results are naturally still pretty good. This is the first time in more than four years that Netflix revenue clocked in with growth north of 17%.
Now let's zoom out. I'm not just talking about the stock itself, which continues to do just fine for most Netflix investors who didn't initiate a position last week. Even after its post-earnings pullback, Netflix stock is beating the market with a 46% gain over the past year and has nearly quadrupled over the past three years. I won't even brag about my own returns as a Netflix investor, since I purchased shares when it was a broken initial public offering (IPO) in 2002.
Zoom out just enough to look ahead -- something that every investor should do -- and the bullish thesis still holds up. Netflix guidance is solid. It sees another quarter of roughly 17% year-over-year growth in revenue, and net income should soar 28% for the seasonally sleepy fourth quarter.
Smile for the camera
I want to start with a negative trend that has emerged over the past five quarterly reports. I'll go over the market's reaction to the stock the day after it offered its results after the previous day's market close.
Oct. 22, 2025: Down 10%
July 18, 2025: Down 5%
April 21, 2025: Up 2%
Jan. 22, 2025: Up 10%
Oct. 18, 2024: Up 11%
This isn't just the second time that the the stock behaved badly on earnings day. The market's reaction has deteriorated with every passing quarter over the past year. It's no longer just an anomaly, something that I was hoping was the case with the prior-quarter's dip.
It's not good, but I still see last week's pullback as a buying opportunity. The platform is too sticky and scalable to fail at this point and has the largest premium audience paying rates that go higher on a regular basis. Its closest rival just raised prices last week, but Netflix hasn't bumped its subscriptions higher since January. It should happen soon, and that will send Wall Street pro targets higher.
It's also been a decade since Netflix declared a stock split, but that could change the next time the shares start to rally at current levels. Stock splits are zero-sum games but have a funny way of showing off confidence and attracting retail investors with the misconception that a stock with a larger price is overvalued.
About that, Netflix is conventionally overvalued. Trading for 34 times forward earnings -- half of its current revenue growth and still greater than its better bottom-line increases -- isn't going to woo value investors. However, a lot of folks who have missed Netflix as a wealth-altering growth stock have overlooked its dominant position and how that will make it hold up better than other platforms in a recession or a media stock services shakeout. Netflix can do a lot with its almost $9 billion in free cash flow over the trailing 12 months.
Finally, give KPop Demon Hunters a chance. It's better than you probably think -- and the same also applies to Netflix stock after last week's sell-off.
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
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Rick Munarriz has positions in Netflix. 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.

KPop Netflix Hunters: Can It Bounce Back This Week?

For Immediate Release
Chicago, IL – October 27, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Mastercard Inc. MA, Netflix, Inc. NFLX, Citigroup Inc. C, Oil-Dri Corporation of America ODC and Perma-Pipe International Holdings, Inc. PPIH.
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for Mastercard, Netflix and Citigroup
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Mastercard Inc., Netflix, Inc. and Citigroup Inc., as well as two micro-cap stocks Oil-Dri Corporation of America and Perma-Pipe International Holdings, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-markets Soar on Softer CPI Numbers
Today's Featured Research Reports
Mastercard’s shares have outperformed the Zacks Financial Transaction Services industry over the year-to-date period (+10.2% vs. -4.6%). The company’s acquisitions and collaborations are helping the company to grow addressable markets and drive new revenue streams. Net revenues rose 16% year over year in the first half of 2025.
The accelerated adoption of digital and contactless solutions is providing an opportunity for its business to expedite its shift to the digital mode. Strong cash flow supports its growth initiatives and enables shareholder value-boosting efforts through repurchases and dividends. It paid a dividend of $1.4 billion in the first half of 2025.
However, MA's dividend yield is lower than the industry average. The Zacks analyst expects adjusted operating expenses to grow 15.6% year over year in 2025. Rebates and incentives increased 14% year over year in the first half of 2025. Also, the stock is overvalued compared to the industry. As such, the stock warrants a cautious stance.
(You can read the full research report on Mastercard here >>>)
Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the past year (+46.2% vs. +45.5%). The company reported third-quarter 2025 earnings of $5.87 per share, missing estimates by 14.8% due to a $619 million Brazilian tax expense. Revenue rose 17.2% year-over-year to $11.51 billion, driven by membership growth and advertising gains.
KPop Demon Hunters became its most-watched film ever at 325 million views. Operating margin reached 28%, below the 31.5% guidance due to the tax issue. Netflix doubled its ad revenue while expanding AI integration across content creation.
NFLX raised its full-year free cash flow forecast to $9 billion from $8-8.5 billion. For the fourth-quarter 2025, Netflix projects $11.96 billion in revenue with 16.7% growth, featuring major releases including Stranger Things' final season and NFL Christmas games. However, stiff competition from streaming players like Apple and Disney+ are headwinds.
(You can read the full research report on Netflix here >>>)
Citigroup’s shares have outperformed the Zacks Financial - Investment Bank industry over the year-to-date period (+43.3% vs. +28.4%). The company’s third-quarter 2025 results benefited from higher net interest income (NII) and solid non-interest revenues, with earnings surpassing estimates for four straight quarters. Despite the expectations of two additional rate cuts by the year-end, stabilizing funding costs and modest loan growth should support NII growth.
Citigroup’s transformation initiatives, including consumer banking exits, cost reductions and operational streamlining, position revenues to exceed $84 billion in 2025. Expansion into private credit strengthens diversification, while a solid capital base supports shareholder returns.
However, the volatile nature of investment banking (IB) and the trading business may pressure fee income. Also, lingering asset-quality pressures and rising expenses remain key risks.
(You can read the full research report on Citigroup here >>>)
Shares of Oil-Dri Corporation of America have outperformed the Zacks Chemical - Diversified industry over the past year (+77.8% vs. -25.2%). This microcap company with a market capitalization of $895.28 million is positioned for durable, margin-accretive growth driven by renewable diesel filtration and premium pet products.
The fluids purification unit reached record FY25 revenue of $105 million (more than 22% year over year), supported by strong biofuel demand and U.S. incentives. The Ultra Pet acquisition added $13.5 million in sales and higher-margin crystal litter, offsetting clay category weakness. B2B revenues rose 21% to $183 million with record performance across agriculture, fluids, and animal health, expanding operating income 31% to $59.8 million.
Overall, fiscal 2025 operating income grew 32% to $68.2 million on disciplined pricing, favorable mix, and cost control. With $50.5 million in cash, low leverage, and a 16% dividend hike, ODC maintains balance sheet strength to fund innovation, M&A, and shareholder returns.
(You can read the full research report on Oil-Dri Corporation of America here >>>)
Perma-Pipe International’s shares have outperformed the Zacks Steel - Pipe and Tube industry over the past year (+126.9% vs. +21.7%). This microcap company with market capitalization of $230.84 million has approval by Saudi Aramco unlocks direct access to one of the world’s largest pipe coating markets, aligning with its strategy to expand in high-value energy infrastructure. A $2.4 million contract in Qatar and facility development reinforce its MENA growth.
Financially, H1 2025 revenues rose 32% YoY to $94.6 million, with net income up 23%, showcasing margin strength. A record $30M in Q3 project wins enhances backlog visibility and global demand validation. With $17.3 million in cash and $17.9 million in unused credit, Perma-Pipe can fund expansion.
However, G&A costs rose 47% YoY, unbilled receivables surged and short-term debt increased, straining liquidity. A higher effective tax rate and unresolved internal control weaknesses pose ongoing risks. Despite these, shares are up 91% YTD and trade at attractive EV/Sales and EV/EBITDA multiples versus the industry.
(You can read the full research report on Perma-Pipe International here >>>)
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Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Mastercard, Netflix, Citigroup, Oil-Dri and Perma-Pipe

Key Points
AI stocks and related technology names are arguably overvalued.
Despite Netflix's recently reported results that fell short of estimates, the streaming giant's long-term potential remains tremendous.
Netflix shares' recent weak performance translates into a compelling opportunity to step into this potential at a great entry price.
There's no denying artificial intelligence (AI)-related stocks are the market's darlings right now. And understandably so. Their underlying companies are just creating too much positive change for this not to be the case.
The only problem? All the talk about artificial intelligence stocks being in a valuation bubble holds a little too much water. There's good reason to be concerned.
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The fact of the matter is, however, most stocks -- even most growth stocks -- aren't artificial intelligence stocks. Plenty of these names are still worth stepping into at their current prices, too. And one of the best prospects among these tickers is streaming giant Netflix (NASDAQ: NFLX).
Netflix, up close and personal
Surprised? Maybe even a little confused? It would be a bit surprising if you weren't. Although it's the obvious powerhouse of the streaming industry, the industry itself is running out of prospective subscribers. Netflix is no exception to this reality, something reflected in its recent subpar performance.
Except, simply adding more paying subscribers isn't the key to this company's growth anymore.
But first things first.
As of the latest tally, $528 billion Netflix is doing about $42 billion worth of business per year, roughly $10 billion of which is being turned into income. That translates into a relatively frothy valuation of around 50 times earnings, but that's not unusual given the company's current growth rates. Last quarter's revenue improved by a little more than 17% year over year, pushing profits up from $5.40 per share to $5.87, for perspective, extending and even accelerating existing trends.
We don't know how many paying customers the company now has, since Netflix stopped disclosing that data as of the beginning of this year. However, as of the end of last year the company boasted 301.6 million members. It's likely added at least a few -- but only a few -- more million subscribers in the meantime; most anyone who wants a particular streaming service already has it.
Underscoring the prospect of slowing growth is last quarter's top line of $11.5 billion, which fell just short of analysts' estimates. Meanwhile, earnings missed consensus estimates of $6.97 per share by a pretty wide margin thanks to soaring content and marketing costs. Rattled investors sent Netflix stock careening on Wednesday in response.
The market's mostly overlooking something about Netflix though, and for that matter, its place within the streaming industry.
A standout with staying power
Yes, in some regards Netflix confirmed current and would-be shareholders' worst fears -- it is getting more expensive to be in this business.
This particular company holds a special place within the streaming industry, however. Not only is it the United States' most-watched subscription-based streaming platform according to Nielsen as well as Pew Research, it arguably invented the streaming industry as we know it. It's doing well enough overseas, too.
It matters simply because it's become the habitual first stop for many consumers. Data from Hub Research indicates that 40% of U.S. television watchers start their viewing search with a streaming service rather than cable, with nearly half of that 40% saying they specifically start this search at Netflix. The next-nearest starting point is a relatively dissimilar YouTube. The third-most popular starting point is Walt Disney's streaming app, although only 5% of consumers actually start there. In a similar vein, for most U.S. households that have access to two or streaming services, it's almost always Netflix and then something else.
Then there's the more subjective argument for owning a stake in Netflix that's the result of its long-lived market leadership. That's the fact that it's become such a well-loved and highly utilized service that it's able to do what rivals arguably can't: trying new things to expand its reach and stickiness.
Case in point: Just last week Netflix announced a deal with Spotify to bring some of the latter's more popular podcasts to Netflix's lineup.
Another example of something Netflix can do differently and better than its competitors is its nascent advertising business. While it's been offering ad-subsidized subscription plans for three years now, the company's still only scratched the surface of the opportunity. As Seaport Research Partners analyst David Joyce wrote earlier this month prior to Tuesday's release of Netflix's Q3 results, "We think advertising could double this year and could grow at 48% annually through 2030 to reach $16 billion." And Wedbush media analyst Alicia Reese agrees, adding, "We expect ad revenue to become Netflix's primary revenue driver beginning in 2026."
Don't overthink what everyone else is
As compelling as this assessment so far might be, it's still not the entirety of the reason to consider committing a few thousand bucks to this stock right now. The rest of the bullish argument for owning a stake in Netflix stock here and now is far more pragmatic. That is, with Wednesday's 10% post-earnings stumble following three months' worth of lethargic performance, this stock is just priced too low to pass up now.
Yes, its third quarter was a disappointment. Keep things in perspective, though. Largely thanks to an advertising business it's still trying to fully figure out, the company still grew its top and bottom lines quite nicely in an economic environment that's not exactly robust.
Both are temporary headwinds, however. Once they're in the rearview mirror, look for this already dominant company to continue leveraging its dominance in a way that inspires investors to ignore its stock's lofty valuation and instead focus on its actual growth potential. Don't overthink it in the meantime.
Should you invest $1,000 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Spotify Technology, 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.

The Smartest Growth Stock to Buy With $2,000 Right Now

Key Points
Netflix's share price is above $1,000, leading to speculation about a stock split.
Despite a strong quarter, the stock pulled back.
The sell-off offers a buying opportunity.
Coming into Netflix's (NASDAQ: NFLX) third-quarter earnings report, there was some hope that the streaming giant would offer investors a stock split.
After all, Netflix now has one of the highest share prices of any stock on the stock market, having passed $1,000 a share earlier this year, and it's not looking back.
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Three years after the company spooked investors by reporting two straight quarters of declining subscriber growth, the company looks stronger than ever. It's executing in all four of its geographic regions. Its streaming competition like Disney and Warner Bros. Discovery has faded, and its addition of an advertising tier has paid off, helping to deliver steady growth, adding a new revenue stream, and giving customers a more affordable option.
Netflix didn't announce a stock split, despite a share price that is hovering around $1,200. However, investors arguably got something better. Let's take a look at the third-quarter earnings report before discussing that opportunity.
Netflix shines again
Not only has Netflix returned to solid growth, but it's also been a model of consistency, with revenue up 17.2% to $11.5 billion, which matched estimates. Backing out an expense related to a dispute with Brazilian tax authorities, it had an operating margin of 31.5%, which is head and shoulders above any of its streaming rivals. On the bottom line, Netflix reported earnings per share of $5.87, up from $5.40, but worse than the consensus at $6.97, as that figure does not adjust for the tax issue.
Netflix no longer reports subscriber numbers, so parsing the growth of its business isn't as easy, but there are a number of promising signs. The company said that view share reached a record in both the U.S. and the U.K., up 15% and 22%, respectively, since Q4 2022 to 22%.
The quarter marked its best ad sales period ever, and it doubled its commitments in the U.S. upfronts, showing its ad strategy is paying off. Meanwhile, it continued to excel in all four of its regions, with revenue-neutral growth of 15% or better.
Netflix's content slate also continues to impress. In fact, it released its most-watched movie in the third quarter with KPop Demon Hunters. Looking ahead to the fourth quarter, it has a strong lineup of movies and shows, including the final season of Stranger Things.
Its forecast called for revenue growth of 16.7% to $12 billion, while it expects an operating margin of 23.9%, up two percentage points from the year before. The sequential decline reflects increased seasonal content spend in the fourth quarter.
What's better than a stock split?
Despite the strong results and solid guidance, Netflix stock still fell on the news, declining 6.5% in after-hours trading.
If that sell-off holds, Netflix stock will be about as cheap as it's been in the last five months. In other words, it looks like a great buy-the-dip opportunity, and Netflix is now down 13.3% from its peak earlier this year.
In addition to these numbers, Netflix is also making smart strategic moves, like a new partnership with Spotify to stream select video podcasts, tapping into a category that Netflix has previously ignored.
The company is also using generative AI to improve its recommendations and content discovery, and it continues to experiment with live entertainment, hosting an NFL doubleheader on Christmas Day and more boxing matches.
Netflix might look expensive after surging in recent years, but based on 2026 estimates, it trades at a price-to-earnings ratio of 35, which looks reasonable, considering the runway of growth ahead of it with advertising and balanced global growth and its industry dominance.
While a stock split might have given the stock a bounce, the sell-off is a real opportunity to get this top stock at a discount.
Should you invest $1,000 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Jeremy Bowman has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Netflix, Spotify Technology, Walt Disney, 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 Investors Didn't Get a Stock Split in the Latest Quarterly Report. They Got Something Better.

Key Points
Netflix's profits took a temporary hit and its growth potential is still strong in spite of a minuscule deceleration in the coming quarter.
The stock trades at a lofty valuation even with the pullback.
Streaming giant Netflix (NASDAQ: NFLX) reported financial results for the third quarter of 2025 on Oct. 21 and the stock promptly plunged by 10%. As of this writing, the stock is now down about 17% from its all-time high, which is one of its larger pullbacks over the last three years.
Investors are looking at Netflix's profits. Management had said that its Q3 operating margin would be 31.5%, which would have been a nice increase from the prior-year period. But unfortunately, the operating margin was only 28%.
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Moreover, investors are looking at an expected deceleration in Netflix's growth rate. The company's revenue grew by 17.2% in Q3, which was slightly ahead of expectations. But in the upcoming fourth quarter, management expects growth of 16.7%. Some investors undoubtedly fear that Netflix's growth has peaked.
Here's why these fears regarding Netflix stock are likely overblown.
Two reasons why fears are overblown
First, Netflix can easily explain the shortfall in its Q3 profits. During the quarter, it spent over $600 million resolving a tax dispute in Brazil. Without this expense, management says it would have done better than planned.
The issue in Brazil wasn't factored into the forecast. But it's something that's unlikely to repeat in the future, which makes it a frustrating event but not one that long-term investors should fret over.
Regarding its growth rate, I believe that Netflix investors need to zoom out and see the bigger picture. It has more growth levers that are likely underappreciated.
One such growth lever is Netflix's foray into merchandise. The company is licensing its popular animated film KPop Demon Hunters to toy companies Mattel and Hasbro. The move is straight from the playbook of fellow entertainment giant Walt Disney and could provide many incremental revenue opportunities for years to come as more of its intellectual property is licensed.
However, the bigger growth lever for Netflix, in my opinion, is advertising. In late 2022, Netflix launched an ad-supported subscription tier to its streaming platform. And management rolled this tier out using what it calls a crawl-walk-run approach -- start slow and pick up speed as the kinks are worked out.
In 2025, Netflix is on pace to double its advertising revenue from 2024. Investors don't know how big this revenue stream is exactly but that's incredible growth. And the exciting thing is that management says it's only in the "walk" phase of its plan. In other words, it's still figuring some things out before really turning on the growth for this portion of its business.
Therefore, concerns regarding slowing growth for Netflix are likely overblown -- after all, a 16.7% growth rate forecast is still stellar for a company of this size and future growth levers could speed things back up. Moreover, the profit problem appears temporary. For these reasons, I wouldn't be concerned with Netflix's business.
Is Netflix stock a buy?
I believe that fears regarding the health of Netflix's business are overblown. That's not the same as believing the stock is a timely buying opportunity today. The health of the business is important but there's a little more to the discussion regarding buying the stock.
Netflix generates a lot of free cash flow, which is great. But the stock currently trades at 57 times its free cash flow, even after the pullback, which is quite pricey.
In short, there is some valuation risk with Netflix stock today -- it's possible that the high stock price today can diminish the returns in coming years even if it continues to grow at a double-digit rate.
However, Netflix stock also has some execution risk. The two aforementioned growth drivers -- merchandise and advertising -- are newer territories for the company. It's possible that there could be missteps when stepping beyond its core competency. And any missteps would exacerbate the valuation risk.
My best guess for the future is that Netflix continues to find good growth and executes well but its current valuation brings the future stock performance more in line with the average for the stock market. That wouldn't be a bad outcome for investors and could make it a buy for some.
For me, however, Netflix isn't one I'm looking to buy today. I believe there are some more timely opportunities for my portfolio. That said, I could potentially change my mind with a more attractive stock price because Netflix has proven that it's a strong business for the long haul.
Should you invest $1,000 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,380!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool recommends Hasbro. 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 Took a Nosedive Last Week. A Buy on the Dip, or a Sign to Shut Off the Screen?

Key Points
Netflix is the world's largest streaming service, and its 300 million-plus members put it miles ahead of the competition.
The company just delivered its fastest quarterly revenue growth in four years, but it missed expectations at the bottom line, which triggered a sell-off in its stock.
Netflix stock could be a great buy heading into 2026, especially for investors with a long-term horizon.
Netflix (NASDAQ: NFLX) operates the world's largest streaming platform for television shows and movies, and it's cementing its dominance by consistently outspending the competition when it comes to creating and licensing content.
The company released its operating results for the third quarter of 2025 (ended Sept. 30) last week, and its earnings missed Wall Street's expectations due to an unforeseen, one-off tax issue. The report triggered a sell-off in Netflix stock, and it's now trading 18% below its record high from earlier this year. Could this be the ultimate opportunity for investors to buy a slice of the streaming giant ahead of 2026, or is there more downside on the horizon?
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Netflix just delivered the fastest revenue growth in four years
Netflix no longer reports its subscriber numbers, but with more than 300 million members at the end of 2024, it remains comfortably ahead of its largest streaming competitors like Amazon Prime and Disney's Disney+. But keeping the top spot isn't a guarantee, so Netflix continues to experiment with innovative ways to attract new members.
The company's advertising subscription tier is one of its most successful growth initiatives to date. It's priced at just $7.99 per month, so it's much cheaper than the Standard ($17.99 per month) and Premium ($24.99 per month) tiers. The difference is made up by selling advertising slots to businesses. In previous quarters, management has said the ad-supported tier routinely accounts for more than half of all new signups in countries where it's available.
Plus, each member becomes more valuable over time, because Netflix can charge more for ads as the subscriber base grows. In fact, the company's advertising revenue doubled in 2024, and it's on track to more than double again in 2025.
Therefore, it has been a key driver of Netflix's strong financial results over the last couple of years. On that note, the company generated a record $11.5 billion in revenue during the third quarter of 2025, which was up 17.2% from the year-ago period. It was the fastest growth rate in four years (since the second quarter of 2021).
However, Netflix disappointed Wall Street at the bottom line. The company generated earnings of $5.87 per share during the quarter, but analysts were looking for $6.97. Management attributed the miss to a one-off, unexpected tax dispute with the Brazilian government, so it wasn't due to its streaming business underperforming.
Netflix is betting big on live content
Despite Netflix's disappointing result at the bottom line in the third quarter, it remains one of the few pure-play streaming providers generating consistent profits. The company has generated a whopping $10.4 billion in net income over the last four quarters alone, which enables it to spend more than its competitors on content, thus solidifying its advantage.
According to management's guidance, Netflix could spend around $18 billion on new shows and movies this year, and live events account for a growing portion of that investment. Live sports in particular are a huge draw for new members, and the company's ventures in areas like boxing and the National Football League (NFL) have been very successful so far.
In September, Netflix exclusively live-streamed the Canelo Álvarez vs. Terence Crawford boxing match, which became the most-watched fight of the century, with 41 million viewers. The platform will look to build on that momentum in mid-November, when it streams the Jake Paul vs. Gervonta Davis bout.
Then, in December, Netflix will exclusively show both Christmas Day NFL games. It also had the rights to these games last year, and each drew over 30 million viewers to become the most-streamed matches in the sport's history at the time.
Should you buy, sell, or hold Netflix stock?
Now to address the big question: What should investors do with Netflix stock from here?
The answer might depend on each individual's time horizon. Based on the company's trailing-12-month earnings of $23.94 per share, its stock is trading at a price-to-earnings (P/E) ratio of around 47. The Nasdaq-100 technology index trades at a P/E ratio of 33.1, so Netflix is considerably more expensive than the rest of the market.
Therefore, investors hoping for blistering gains in the short term might be left disappointed. But there could be a great opportunity here for investors with a longer-term time horizon. Wall Street's consensus estimate (provided by Yahoo! Finance) suggests Netflix could grow its earnings to $32.35 per share in 2026, placing its stock at a more reasonable forward P/E ratio of around 34:
That would bring Netflix roughly in line with the Nasdaq-100 in terms of valuation, so as long as the company continues to grow its bottom line, its stock will look increasingly attractive as the new year progresses.
Simply put, investors who buy the stock today and intend to hold it for three to five years have an opportunity to do extremely well from here.
Should you invest $1,000 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,380!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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.

Indicator	TTM Median
P/E	58.67 15.01
Price/Sales	13.55 0.99
P/B	21.99 1.40
P/FCF	72.99 11.54

Indicator	TTM Median
ROE	39.61 13.09
ROA	17.90 4.72
ROI	25.10 6.69
Net Worth	542.48 0.77
Quick Ratio	0.00 0.93
Current Ratio	1.20 1.24

Indicator	TTM Median
Net Profit Margin	23.07 9.44
Operating Margin	27.71 14.24
Gross Margin	46.92 54.26
Return on tangible equity	39.61 25.55

Indicator	TTM Median
EPS	6.61 0.25
EPS Forecast	5.69 0.22
Revenue	10.54B 89.00M
Gross Profit	5.28B —
EBITDA	7.25B —

Netflix, Inc.

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

Valuation

Debts

Efficiency

Other ratios

Revenue