Netflix (NFLX) Stock: Three Reasons Why You Should Invest
Netflix (NFLX) stock is revealing several signals of promise, prompting investors to buy in on the stock now for potential profits. At press time, NFLX stock trades at $958.08 a share. While it has slightly come down from hitting $1,000 for the first time some time ago, the company remains performing near ATH levels. But why is Netflix stock performing so well right now, especially compared to rival entertainment stocks and other big companies?
With tens of millions of new subscribers and soaring revenue and profit, Netflix stock (NFLX) has surged to new highs. Buy signals are all around the company, making it one of the top options for investors in 2025 among entertainment stocks. While rivals like Disney (DSNY) and AMC lag behind, NFLX continues to dominate the entertainment stock realm for several reasons.
Subscriptions are Rising
The amount of paid subscriptions to Netflix continues to climb, even as the streaming service raised prices. In Q4 2024, it added a record 19 million net paid members, finishing the year with 302 million. More than half of those additions chose the lower-priced ad-supported tier, which starts at $6.99 per month in the U.S.
Revenue climbed 16% in 2024, while improved scale and a more diversified operation propelled earnings per share (EPS) 65% higher. The consensus prediction among Wall Street analysts tracked by Yahoo! Finance is that Netflix will deliver 14% revenue growth this year as EPS climbs 25%.
New Original Programming
Another catalyst for Netflix (NFLX) over the past few years has been its original, exclusive content. Most recently, Netflix began producing and showcasing live events, from comedy shows to premium sporting events. This development has driven streaming and subscription numbers sky-high, resulting in even more confidence from NFLX stock investors.
This year, anticipation is building for the final season of Stranger Things and season three of Squid Game — two releases that are likely to help Netflix keep viewers highly engaged. Furthermore, more live sports events such as WWE Wrestlemania and NFL games may bring in record live viewership.
An Outperforming Valuation
Lastly, Netflix (NFLX) stock has been outperforming expectations for the last few years. With its stock achieving $1,000 for the first time this year, experts expect that number to be a new norm in the future. Not only that, the stock is trading at 36 times its consensus 2025 EPS estimate, well below its five-year average P/E ratio of about 47, indicating it may be undervalued.
Recently, one analyst was especially bullish on the streaming giant’s stock. MoffettNathanson analyst Robert Fishman on Monday upgraded Netflix stock to buy and increased his price target to 1,100 from 850. If this is just the start of what Netflix stock can do, the next year or two could see investments surge, and corresponding profits to multiply.
Read More
JPMorgan Chase Sees One Stock Market Index Outperforming S&P 500 Over Next 15 Years Amid US Policy Uncertainty, Declining Consumer Confidence
Netflix (NFLX) Stock: Three Reasons Why You Should Invest
Netflix (NFLX) stock is revealing several signals of promise, prompting investors to buy in on the stock now for potential profits. At press time, NFLX stock trades at $958.08 a share. While it has slightly come down from hitting $1,000 for the first time some time ago, the company remains performing near ATH levels. But why is Netflix stock performing so well right now, especially compared to rival entertainment stocks and other big companies?
With tens of millions of new subscribers and soaring revenue and profit, Netflix stock (NFLX) has surged to new highs. Buy signals are all around the company, making it one of the top options for investors in 2025 among entertainment stocks. While rivals like Disney (DSNY) and AMC lag behind, NFLX continues to dominate the entertainment stock realm for several reasons.
Subscriptions are Rising
The amount of paid subscriptions to Netflix continues to climb, even as the streaming service raised prices. In Q4 2024, it added a record 19 million net paid members, finishing the year with 302 million. More than half of those additions chose the lower-priced ad-supported tier, which starts at $6.99 per month in the U.S.
Revenue climbed 16% in 2024, while improved scale and a more diversified operation propelled earnings per share (EPS) 65% higher. The consensus prediction among Wall Street analysts tracked by Yahoo! Finance is that Netflix will deliver 14% revenue growth this year as EPS climbs 25%.
New Original Programming
Another catalyst for Netflix (NFLX) over the past few years has been its original, exclusive content. Most recently, Netflix began producing and showcasing live events, from comedy shows to premium sporting events. This development has driven streaming and subscription numbers sky-high, resulting in even more confidence from NFLX stock investors.
This year, anticipation is building for the final season of Stranger Things and season three of Squid Game — two releases that are likely to help Netflix keep viewers highly engaged. Furthermore, more live sports events such as WWE Wrestlemania and NFL games may bring in record live viewership.
An Outperforming Valuation
Lastly, Netflix (NFLX) stock has been outperforming expectations for the last few years. With its stock achieving $1,000 for the first time this year, experts expect that number to be a new norm in the future. Not only that, the stock is trading at 36 times its consensus 2025 EPS estimate, well below its five-year average P/E ratio of about 47, indicating it may be undervalued.
Recently, one analyst was especially bullish on the streaming giant’s stock. MoffettNathanson analyst Robert Fishman on Monday upgraded Netflix stock to buy and increased his price target to 1,100 from 850. If this is just the start of what Netflix stock can do, the next year or two could see investments surge, and corresponding profits to multiply.
Read More