Netflix's stock has surged over 120% in the past two years, driven by global subscriber gains and strong content performance. Analysts assess whether current valuation levels offer a compelling entry point for long-term investors.
- Netflix reported 264 million paid subscribers as of Q3 2025, a 14% year-over-year increase.
- Revenue reached $3.2 billion in Q3 2025, up 9% YoY, with operating income at $710 million.
- NFLX stock closed at $508.40 on December 13, 2025, up 128% from its 52-week low.
- 68% of Netflix’s revenue now comes from international markets.
- The company’s P/E ratio is 34.5, above the S&P 500 average.
- Netflix projects continued subscriber growth through international expansion and new content releases in 2026.
Netflix Inc. (NFLX) has emerged as a key player in the streaming sector, reporting 264 million paid subscribers globally as of Q3 2025, up 14% year-over-year. The company’s revenue climbed to $3.2 billion in the quarter, reflecting a 9% increase from the prior year, with operating income reaching $710 million, a 22% rise. These figures underscore the resilience of its direct-to-consumer model amid shifting media consumption patterns. The stock’s performance has been notable: NFLX closed at $508.40 on December 13, 2025, marking a 128% gain from its 52-week low of $223.30 in early 2024. Despite this rally, the price-to-earnings ratio stands at 34.5, slightly above the S&P 500 average, suggesting investor optimism about future growth. Analysts point to continued international expansion, particularly in India and Southeast Asia, as a key catalyst for subscriber growth, with the company now generating 68% of revenue from outside North America. Market participants are closely watching Netflix’s upcoming content slate, including three major original series scheduled for 2026 launch. The company’s investment in AI-driven personalization tools and its shift toward ad-supported tiers are seen as strategic moves to sustain competitiveness. However, rising content costs and increasing competition from Disney+, Amazon Prime, and Apple TV+ pose risks to margin expansion. Investors considering NFLX as a long-term holding should weigh both its market leadership in streaming and the volatility inherent in high-growth tech stocks. The stock’s 5-year annualized return of 25.3% outpaces the S&P 500’s 10.1%, but recent momentum raises questions about future upside if subscriber growth slows.