This Stock-Split Stock Is Up 88,600% Since Its IPO -- and Wall Street Thinks It's a Buy Right Now

Imagine investing $10,000 in a stock and never selling a share. After 23 years, you check your portfolio. Your initial investment is now valued at approximately $8.9 million.

You don't have to use your imagination if you bought shares of Netflix (NASDAQ: NFLX) in 2002. This stock, which recently conducted a 10-for-1 stock split, is up 88,600% since its IPO. Is Netflix still an excellent stock to buy? Wall Street thinks so.

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Streaming and soaring

Netflix was a solid winner for investors even in its early years as a publicly traded company. Back then, the company mailed DVDs to customers. Its first DVD shipped, by the way, was Tim Burton's horror comedy film Beetlejuice.

However, Netflix shifted into a higher gear in 2007 when it launched a streaming TV service. Sure, the stock experienced significant volatility during the financial crisis in 2007 and 2008. By the end of 2009, though, Netflix's shares had soared more than 140%. And that was just the beginning.

The company even invented a streaming video box along the way. In 2008, CEO Reed Hastings decided to spin out the division that developed the box and sell it to a start-up. You might have heard of that company: It's called Roku (NASDAQ: ROKU).

Today, Netflix has over 300 million paid subscribers. It operates in over 190 countries. The company is a cultural phenomenon, with hit shows including Bridgerton, Squid Game, and Stranger Things. Netflix is on track to generate revenue of around $45 billion this year, with a profit in the ballpark of $11 billion.

Analysts believe there's more room to run

Can a stock that has delivered a lifetime gain of 88,600% continue to climb higher? Absolutely. Many on Wall Street believe Netflix has plenty of room to run in 2026.

Of the 49 analysts surveyed by S&P Global (NYSE: SPGI) in November who cover Netflix, eight rated the stock as a "strong buy." Another 26 analysts recommended it as a "buy." A smaller number – 13 analysts – rated Netflix as a "hold." Only two outliers believed selling the stock was the best alternative.

The average 12-month price target for Netflix represents a potential upside of around 27%. Analysts at Pivotal Research are even more bullish, with a price target more than 50% higher than the current share price.

Is Netflix stock a buy?

Are Wall Street analysts right about Netflix? Is this high-flying stock over the last two-plus decades still a buy? I think so.

Netflix's valuation might look concerning at first glance. Its forward price-to-earnings ratio of 33.8 is admittedly high. However, the company's strong growth prospects warrant a premium price tag, in my opinion.

Some could also fret about Netflix's attempt to acquire Warner Bros. Discovery's (NASDAQ: WBD) studios and streaming services. I think it's too soon to worry, though.

For one thing, Netflix might not close the deal. It's bidding against Comcast (NASDAQ: CMCSA) and Paramount Skydance (NASDAQ: PSKY). Even if Netflix does successfully acquire part of Warner Bros. Discovery, adding new content and streaming options could be a net positive for the company if the price is reasonable. Importantly, CNBC recently reported that Netflix was expected to be "disciplined" with the price it offers for the acquisition.

Meanwhile, there's a lot to like about Netflix. The company's revenue, earnings, and free cash flow continue to grow. Netflix reached an all-time high view share for a single quarter in the U.S. and the United Kingdom in the third quarter of 2025.

The company continues to deliver content that viewers like. Its advertising business is still in its early stages. Netflix is using generative AI to enhance member experiences and empower the producers of TV shows and films to visualize set designs and wardrobes, and even de-age characters.

I don't expect Netflix to deliver anywhere near an 88,600% gain over the next 23 years. But it doesn't have to do so to generate market-beating returns for long-term investors.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Roku, S&P Global, and Warner Bros. Discovery. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.