Up More Than 330% Since 2023, Is It Too Late to Buy Netflix Stock?

Core Viewpoint - Netflix has demonstrated strong performance and growth in the streaming industry, but its current high valuation raises questions about future investment potential [1][4][10]. Group 1: Company Performance - Netflix has successfully made streaming profitable while diversifying into gaming and live sports, contributing to its unstoppable growth in recent years [1]. - Since the beginning of 2023, Netflix shares have surged over 330%, indicating strong investor confidence in the company's results [2]. - The company has added approximately $10 billion to its revenue, totaling $39 billion in the previous year [10]. Group 2: Valuation Concerns - Netflix's stock is currently trading at over 60 times its trailing earnings, significantly higher than its five-year average, suggesting a potential overvaluation [4][6]. - The consensus price target for Netflix is $1,182.58, which is lower than its recent closing price of $1,289.62, indicating that analysts may believe the stock has limited upside [6]. - The growth rate of Netflix has been slowing down, which raises concerns about whether its high premium is justified given the current market conditions [7][9]. Group 3: Investment Outlook - Despite Netflix's strong business fundamentals, the high valuation presents considerable downside risk, making it a less attractive investment option at this time [10][11]. - The recommendation is to monitor Netflix rather than invest immediately, as there are other growth stocks available at more reasonable valuations [11].