Should You Buy Netflix Right Now While It's Below $1,000?

Core Insights - Netflix has achieved a remarkable 1,500% increase in stock price over the past decade, with shares currently at all-time highs [1] - The company added a record 18.9 million net-new subscribers in Q4 2024, bringing the total to 301.6 million customers globally [1][2] Group 1: Market Position and Strategy - Netflix's first-mover advantage has allowed it to dominate the streaming industry by investing heavily in content, technology, and marketing while competitors focused on traditional cable [2] - The company has shifted its strategy by introducing an ad-supported subscription tier, which has seen significant success with a 30% quarter-over-quarter increase in ad members in Q4 [4][5] Group 2: Financial Performance - In 2024, Netflix reported an operating margin of 27%, a substantial increase from 13% in 2019, with expectations to reach 29% in 2025 [3] - The ad revenue has doubled year-over-year, with forecasts indicating it will double again in 2025, showcasing strong monetization of both ad-supported and ad-free plans [6] Group 3: Future Growth Opportunities - Netflix is expanding into live events, securing contracts for NFL games and the FIFA Women's World Cup, which is expected to drive additional ad revenue [7] - The market remains optimistic about Netflix's growth potential, but investors should consider the current valuation, with a forward P/E ratio of 39.6, which is 46% higher than the Nasdaq-100 index [9][10]