Should You Buy Netflix Stock Before July 17?

Core Viewpoint - Netflix has demonstrated significant revenue growth and profitability, raising questions about whether it is a good time to invest in the stock given its recent performance [2][3][14]. Revenue Growth and Financial Performance - Netflix's stock price has surged 614% over the past three years and 91% over the past 12 months, reflecting strong financial performance [2]. - In Q1, Netflix generated revenue of $10.5 billion, a 13% year-over-year increase, with earnings per share (EPS) of $6.61, up 25% [7]. - For Q2, Netflix expects revenue of $11.04 billion and EPS of $7.03, indicating year-over-year growth of 15% and 44%, respectively [8]. Growth Strategies - The introduction of an ad-supported tier in late 2022 has reignited growth, with 94 million monthly active users on this tier, representing a 135% increase year-over-year [10]. - Netflix's crackdown on password sharing has also contributed to revenue growth, allowing users to share accounts for a fee [6]. Audience Engagement and Programming - Netflix reaches more 18-to-34-year-olds than any other U.S. broadcast or cable network, with these viewers averaging 41 hours of programming per month, enhancing its appeal to advertisers [11]. - The company has a strong lineup of programming for the second half of 2025, including highly anticipated releases like Squid Game 3, which garnered 60.1 million views in its first three days [12]. Future Outlook - Management aims to double revenue and triple ad revenue by 2030, potentially increasing its market cap to around $1 trillion [16]. - Analysts are optimistic, with 33 out of 50 recommending the stock as a buy or strong buy, indicating strong market confidence [15]. Valuation - Netflix is currently valued at 42 times next year's expected earnings, which, while seemingly high, is considered reasonable given its growth potential [17].