Netflix is a classic story of transformation. What started as a DVD-by-mail business has become the world’s leading streaming platform, now serving over 300 million subscribers. The company’s rise, reflected in a breathtaking 112,700% share price gain since its 2002 IPO, is not just a success story; it signals adaptability and relentless pursuit of growth. Netflix’s current focus is clear. With scale comes the challenge of keeping growth alive, which is why Netflix is doubling down on its strengths. It continues to spend heavily on creating and licensing content, with $18 billion targeted for this year alone.
More interestingly, Netflix is leaning into live events. Whether it is exclusive sports broadcasts, high-profile boxing matches, or cultural moments, the company’s platform is attracting millions in real time. These events are not just magnets for new subscribers, they are also drawing advertisers to its growing ad-supported tier. The numbers paint a confident picture. Revenue hit a record $11.1 billion in the second quarter of 2025, up 15.9% from the prior year and accelerating over previous quarters. Net income jumped 45% to $3.1 billion.
Netflix is not just growing; it is doing so profitably, a rarity among its streaming peers. This profitability nurtures a content flywheel that is tough for competitors to match. Still, the stock comes with a premium. It trades at a price-to-earnings ratio over 50, much higher than the overall market. For some, this may make short-term gains difficult. However, with advertising revenue set to double and an ambition to reach $78 billion in annual revenue by 2030, Netflix is positioned for success if its targets are met. The next five years could reward patient investors, especially as the ad business matures and new growth avenues unfold.
Given all this, Netflix remains a compelling hold for believers in its future, and a potential buy for those comfortable with the price and confident in the long-term story. It is not a value play, but a bet on sustained innovation and global scale.
