1 Tech Stock That Should Be on Every Investor's Holiday List
Key Points
Netflix has posted strong financial results in 2025.
Despite uncertainty in the economy, consumers still value their Netflix subscription.
Earnings are expected to grow at high rates in the coming years.
- 10 stocks we like better than Netflix ›
Netflix (NASDAQ: NFLX) has pulled back 29% from its recent highs. Given the streaming leader's strong growth and opportunities ahead, this dip could truly be a gift for investors. Here's why investors should consider adding the stock to their buy list heading into 2026.
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Why buy Netflix stock
The leading video streaming service has continued to report solid growth in revenues and profits. Analysts expect Netflix to report full-year revenue of $45 billion. That would represent a solid year-over-year increase of 15%.
Several top consumer goods brands would love to be reporting that level of revenue growth right now. While the economy is growing, it's mainly being driven by the technology sector, particularly artificial intelligence. However, consumers are clearly voting with their wallets that their Netflix subscription will be one of the last things they cut to save money.
Moreover, the company's recent $82 billion bid to acquire Warner Bros. Discovery would significantly enhance its content library, assuming it successfully fends off regulatory reviews and a competing bid from Paramount. This big-ticket deal includes HBO and a century's worth of moviemaking, which no amount of money can replicate.
Even without Warner Bros., Netflix's strong earnings growth prospects make the stock a compelling investment. Analysts currently project the company's earnings per share to grow at an annualized rate of 24% over the next several years. This view is consistent with management's long-term goal of expanding margins, which provides ample fuel to send the stock higher over time.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
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