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Netflix reported strong financial results in 2025.
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Despite economic uncertainty, consumers still value their Netflix subscription.
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Profits are expected to grow at high rates in the coming years.
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10 stocks we like better than Netflix ›
Netflix (NASDAQ:NFLX) fell 29% from its recent highs. Given the strong growth of the streaming leader and the opportunities ahead, this drop could truly be a gift for investors. Here’s why investors should consider adding the stock to their buy list between now and 2026.
The leading video streaming service continued to report solid revenue and profit growth. Analysts expect Netflix to report annual revenue of $45 billion. This would represent a solid year-over-year increase of 15%.
Several major consumer goods brands would currently like to report this level of revenue growth. While the economy is growing, it is mainly driven by the technology sector, particularly artificial intelligence. However, consumers are clearly voting with their wallets that their Netflix subscription will be one of the last things they cut to save money.
Additionally, the company’s recent $82 billion takeover bid Discovery of Warner Bros. would significantly improve its content library, provided it can successfully withstand regulatory scrutiny and a competing offering from Primordial. This expensive deal includes HBO and a century of cinema, which no amount of money can duplicate.
Even without Warner Bros., Netflix’s strong earnings growth prospects make this stock an attractive investment. Analysts currently expect the company’s earnings per share to grow at an annualized rate of 24% over the next few years. This view is consistent with management’s long-term goal of growing margins, which provides enough fuel to push the stock higher over time.
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