Netflix Stock Is Up 40% in 2025 But Wall Street Isn’t Backing Down. Should You Buy NFLX Now?

Core Insights - Netflix's stock has increased by 40% in 2025, with Wall Street maintaining a bullish outlook, highlighted by Loop Capital's upgrade from "Hold" to "Buy" and a price target increase to $1,350, indicating a potential upside of 12.5% [1][2] Financial Performance - In Q3, Netflix is expected to achieve an 18% year-over-year revenue growth to $11.6 billion, with adjusted earnings per share projected at $7.11, surpassing both company and consensus estimates [3] - The company is on track to reach a record share of U.S. TV consumption, a crucial metric given that the U.S. contributes over 40% of total revenue [2] Operational Efficiency - Netflix's operating margins are expanding to nearly 30%, with an EBITDA margin of 68%, reflecting its leadership position and operational efficiency in the streaming market [3] Market Position and Strategy - The company has raised its full-year revenue guidance to $45 billion, with a significant increase in content investment from $11 billion in 2020 to $16 billion in 2025, enhancing customer engagement [6] - The advertising tier is gaining momentum, with expectations to double ad revenue in 2025, supported by a proprietary ad-tech stack that improves targeting and access for advertisers [7] Competitive Landscape - Despite strong performance, Netflix faces increasing competition from free platforms like YouTube, with stagnation in U.S. viewing share despite higher content spending [8] - Per-member engagement growth is flat when adjusted for household sharing changes, indicating potential market saturation in core areas [8]