Netflix, Inc. (NFLX), headquartered in Los Gatos, California, operates as a subscription streaming service and production company, delivering entertainment services in approximately 190 countries. Valued at $433.7 billion by market cap, the company offers series, documentaries, feature films, and games across multiple genres and languages.
Shares of this global streaming giant have outperformed the broader market over the past year. NFLX has gained 81.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.6%. In 2025, NFLX stock is up 13.8%, surpassing the SPX’s 2.5% rise on a YTD basis.
Zooming in further, NFLX’s outperformance is also apparent compared to Vanguard Communication Services Index Fund ETF (VOX). The exchange-traded fund has gained about 30.5% over the past year. Moreover, NFLX’s double-digit returns on a YTD basis outshine the ETF’s 7.2% gains over the same time frame.
Netflix's outperformance is driven by unrivaled scale, strong pricing power, expanding margins, and sustained subscriber growth. Its strategic innovations in live sports programming, advertising, and mobile gaming continue to fuel its dominance, highlighted by high-profile events like the Logan Paul vs. Mike Tyson fight and NFL games, and its recent launch of an ad tech platform in Canada, U.S., and other markets.
On Jan. 21,NFLX reported its Q4 results, and its shares closed up more than 9% in the following trading session. Its EPS of $4.27 surpassed the Wall Street expectations of $4.20. The company’s revenue was $10.2 billion, topping the Wall Street forecasts of $10.1 billion.
For fiscal 2025, ending in December, analysts expect NFLX’s EPS to grow 24% to $24.58 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 42 analysts covering NFLX stock, the consensus is a “Moderate Buy.” That’s based on 27 “Strong Buy” ratings, two “Moderate Buys,” 12 “Holds,” and one “Moderate Sell.”
This configuration is more bullish than a month ago, with 22 analysts suggesting a “Strong Buy,” and two analysts recommending a “Strong Sell.”
On Feb. 7, Citigroup Inc. (C) kept a “Neutral” rating on NFLX and raised the price target to $1020, implying a potential marginal upside from current levels.
The mean price target of $1071.89 represents a 5.7% premium to NFLX’s current price levels. The Street-high price target of $1494 suggests an ambitious upside potential of 47.3%.
