Should You Invest $1,000 in Netflix (NFLX) Right Now?
Key Points
Netflix’s massive scale helps it generate strong free cash flow, something that wasn’t the case several years ago.
Despite shares trading off their peak, the valuation remains elevated.
- 10 stocks we like better than Netflix ›
Netflix (NASDAQ: NFLX) is a category-defining enterprise that has come to lead its industry. And today, the streaming giant is one of the top choices that households have when consuming video content. Shares have done well recently, soaring 277% in the past three years (as of Nov. 18).
But this dominant streaming stock trades 16% below its peak. Should you invest $1,000 in Netflix right now?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Netflix.
All signs point to Netflix being an outstanding company
Netflix possesses a leading brand in the media and entertainment landscape. Its name has become so strong that it's often used as a verb, showcasing the consumer mindshare that it now commands.
The business today generates robust profits, with free cash flow expected to total $9 billion this year. This is a direct result of Netflix's massive scale, with more than 300 million subscribers as of year-end 2024.
The company isn't done growing. It continues to register double-digit revenue gains, which might indicate a long expansionary runway.
What about the valuation?
This is an outstanding company that long-term investors should want to own. But the valuation is a key piece of the investment decision-making process.
Netflix is far from being a bargain, with the stock trading at a price-to-earnings ratio of 46. Investors should wait for a better opportunity.
Should you invest $1,000 in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $615,279!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,111,712!*
Now, it’s worth noting Stock Advisor’s total average return is 1,022% — a market-crushing outperformance compared to 188% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of November 17, 2025
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.
Recommended Articles
