Is NFLX a good stock to buy now? We met a cheap thesis on Netflix, Inc. on Investomine’s Substack. In this article, we will summarize the bulls thesis on NFLX. The share of Netflix, Inc. we were trading at $98.32 since March 9th. NFLX trailing and forward P/E were 39.14 and 31.35 respectively according to Yahoo Finance.
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Netflix, Inc. provides entertainment services worldwide. NFLX has entered a transition phase, from a broadcast platform growing by any means into a highly profitable, global entertainment business with strong pricing power, rising margins, and accelerating free cash flow.
The company closed 2025 with $45.2 billion in revenue, up 16% year-over-year, and expects 12-14% growth in 2026, supported by broad subscriber growth, increasing engagement, and a fast-growing advertising business. Operating income reached $13.3 billion with a margin of 29.5%, up from 26.7% in 2024, and revenue reached $11.0 billion, reflecting a structural shift to higher revenue generation. Free cash flow increased to $9.5 billion by 2025, enabling Netflix to fund content, reduce debt, and support strategic plans including acquisitions and shareholder returns, with total debt of approximately $5.5 billion.
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Netflix’s advertising business, which exceeds $1.5 billion in 2025 and is expected to reach $3 billion in 2026, leverages premium, product-safe content, engaged users, and first-party data, representing a high growth engine.
Content strategy has shifted from volume to global franchises and long-term IP, with hits like Stranger Things, Bridgerton, and One Piece driving engagement, reducing churn, and building cultural relevance. The company is also expanding into live events and games to drive platform engagement.
Netflix now operates as a diversified, cash-generating entertainment powerhouse with strong free cash flow, global brand dominance, and multiple long-term growth drivers. While short-term volatility may arise from acquisitions, competition, or regulatory pressure, the company’s scale, financial flexibility, and strategic vision position it as a strong, long-term investment with the potential to create ongoing value.
Previously, we included a bullish thesis to Netflix, Inc. (NFLX) on Margin of Sanity in May 2025, which highlighted the hidden value in Netflix’s library and long-term revenue potential from existing IP. NFLX’s stock price is down about 17.51% (adjusted for stock splits) since our merger due to concerns about the (now abandoned) Warner Bros acquisition. Investomine has a similar view but emphasizes Netflix’s transition to a highly profitable, cash-generating global entertainment business with growing margins and free cash flow.
