Should I Buy Netflix Shares or Not?
It might be hard to imagine now, but Netflix started out as an online DVD rental company in 1997. It wasn’t until 2007 that it launched its pioneering streaming service which led to it becoming a household name around the world.
In the intervening years, it has grown into one of the largest companies in the world and become a fixture in hundreds of millions of homes. But is Netflix a buy in 2025? In this article, we will examine the prospect of investing in Netflix and how to do so.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
Table of Contents
Should I Buy Netflix Shares?
Netflix’s shares went on a tear during the first half of 2025, outperforming the wider S&P 500 in the first six months of the year. For those asking themselves, “should I buy Netflix shares”, in the following sections, we will analyse the buy and sell cases for Netflix stock.
The Buy Case
The streaming market has grown considerably in recent years, as more and more viewing hours shift away from traditional television. According to data from Nielsen, in the US, almost 45% of total television viewing was done by streaming in May 2025.
Many companies have moved to capitalise on the growth of the market. However, Netflix was a pioneer and now a leader in the industry, launching its streaming service back in 2007.
The streaming giant’s head start has proven an advantage, allowing it to build a vast subscriber network and a global brand name.
In May 2025, Netflix accounted for 7.5% of all television viewing in the US. In the first quarter of 2025, it accounted for 9% of television time in the UK.
Boosting Subscriber Numbers Whilst Diversifying Revenue
Its large customer base means the company generates a lot of revenue, much of which it ploughs back into the business, investing in original content to help retain subscribers.
In recent years, Netflix also introduced new measures to help boost subscriber numbers, including cracking down on password sharing and introducing a cheaper, ad-supported membership tier.
The latter of these appears to have been particularly successful, allowing Netflix to boost subscriber numbers whilst opening up a new stream of revenue from advertising. Netflix announced earlier this year that its ad-supported tier had hit 94 million monthly active users and it anticipates ad revenue to double in 2025.
Future Growth Potential
Netflix derives the majority of its revenue from the US and Canada, where it had almost 90 million subscribers at the end of 2024. Such a high subscriber count may indicate that Netflix does not have much more room for growth here.
However, penetration in other international markets, such as Latin America, remains considerably lower, providing plenty of opportunity for future growth.
Indeed, current analyst consensus estimates that annual revenue will increase by 14% and 12% in 2025 and 2026 respectively. Similarly, annual earnings are forecast to rise 26% and 20% in 2025 and 2026 respectively.
Analyst forecasts are not a reliable indicator of future performance and are subject to change.
The Sell Case
As with any investment, there are risks involved in buying shares in Netflix and there are a number of specific factors to consider before doing so.
The streaming market has changed significantly from when Netflix launched its service almost two decades ago. It now has to contend with a growing number of competitors. Whilst its head start has contributed to its remarkable success, as rivals improve their offerings, Netflix may struggle to retain subscribers.
Even if it does maintain its dominant position in the market, it’s important for investors to consider that the stock may not be able to continue matching past levels of growth. As a large, well-established company it has less room for growth, and it wouldn’t be surprising to see growth slow as it continues to mature.
Furthermore, Netflix’s currently high valuation may be a cause for concern amongst potential investors. At the time of writing, the stock is trading at close to 60 times earnings. For reference, that’s more than twice the price to earnings ratio of the wider S&P 500.
Netflix Stock Forecast
According to 38 analysts, polled by TipRanks, offering a 12-month stock price forecast for Netflix over the past 3 months:
- Buy Ratings: 28
- Hold Ratings: 10
- Sell Ratings: 0
- Average Price Target: $1,289.56
- High Price Target: $1,600.00
- Low Price Target: $950.00
How to Invest in Netflix with Admiral Markets
With an Invest.MT5 account from Admiral Markets, investors can access Netflix shares with commissions of $0.02 per share (minimum transaction fee of $1). In order to invest in Netflix, follow these steps:
- Register for an Invest.MT5 account and log in to the Dashboard.
- Find your account details in the Accounts section of the Dashboard and click ‘Invest’ to open the Admiral Markets Platform.
- Search for Netflix to open the instrument page.
- Enter the number of shares you wish to purchase and click ‘Place order’!
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FAQ
Does Netflix pay dividends?
No, Netflix does not currently pay a dividend and has not announced any plans to do so in the future.
When did Netflix IPO?
Netflix went public on 23 May 2002 at an initial price of $15 per share.
How many times has Netflix stock split?
Netflix has split its stock twice. The most recent of these splits was a 7-for-1 split in July 2015.
How can I invest in Netflix?
In order to invest in Netflix, investors need to open an investing account with a broker which offers access to the US stock market.
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