This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Key Points
- Netflix continues to report strong revenue growth with impressive profitability.
- Despite shares being 21% off their peak, they trade at an elevated valuation.
Netflix continues to dominate the streaming landscape
Despite the stock’s recent dip, Netflix as a company is firing on all cylinders. While the company stopped reporting subscriber numbers at the end of last year, it’s likely that the membership base continues to expand. Revenue through the first nine months of 2025 increased by 15% year over year, indicating greater adoption of the streaming platform. Profits are soaring as well. Operating income is expected to rise by 26% in 2025, according to the management team.Market expectations are high
This is a high-quality business. But investors shouldn’t rush to buy the stock just yet. That’s because it’s expensive, trading at a price-to-earnings ratio of 46. The market continues to view the company in an extremely favorable light, which is no surprise given that Netflix dominates the industry. Can Netflix shares keep marching higher? Of course they can. However, I don’t think there’s any margin of safety for prospective investors who buy in right now. A wait-and-see approach might be the better option with this stock right now.This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
The post Should you buy Netflix before 2026? appeared first on The Motley Fool Australia.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
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.custom-cta-button p { margin-bottom: 0 !important; }This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
More reading
- Netflix just announced a 10-for-1 stock split — Here’s why the stock looks like a no-brainer buy right now
- 3 US stocks that could make you rich
- $10,000 invested in the NDQ ETF 5 years ago is now worthâ¦
- Netflix pops on long-anticipated 10-for-1 stock split. Here’s why the “Ten Titans” growth stock is a great buy in November.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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