Is Netflix Stock Going to $150?
Key Points
Netflix continues to grow, but it still faces heavyweight competition.
Its P/E ratio has fallen below its five-year average.
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After falling in the second half of 2025, Netflix (NASDAQ: NFLX) stock is on an upsurge as it returns to the $100 per share level. The failure of the deal to buy Warner Media assets from Warner Bros Discovery seems to have relieved investors concerned about the rising costs of the bidding war with Paramount Skydance.
Unfortunately, this also means Netflix loses controlling access to a content library containing numerous iconic entertainment franchises. Will that ultimately hamper Netflix stock's rise to $150 per share? Let's take a closer look.
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Image source: Netflix.
Why Netflix?
Netflix stands out for its reach. It operates in more than 190 countries and has become a content creator in its own right. Expanding into ad-supported content and games has also increased its popularity.
When looking at the current state of streaming, over 300 million households globally subscribe to the platform, though some research analysts believe Netflix could eventually serve between 700 million and 1 billion homes. Also, Netflix claims under 10% of total TV time despite its success.
However, investors should keep Netflix's competition in mind, particularly in the developed world. Since the Warner Bros Discovery deal fell through, it will have less content under its umbrella. Thus, it will still have to compete with Disney, Paramount, Alphabet's YouTube, and many others to hold on to subscribers.
What the numbers say
Netflix continues to perform well with 2025 revenue of $45 billion, which increased by 16% from year-ago levels. Costs and expenses grew at a slower pace than revenue, leading to 28% operating income growth. Still, lower interest income and higher income taxes weighed on the bottom line, meaning its $11 billion in net income rose 26% year over year.
Such increases should bode well for the stock price, as the stock is now flat for the year, thanks in part to the failure of the Warner Bros deal.
That means Netflix's valuation offers a mixed picture. Its P/E ratio of 38 is below the five-year average of 43. Nonetheless, the market offers no guarantees it will carry the premiums of the past, particularly since the company will not be acquiring the Warner Bros. content.
Is Netflix going to $150?
Investors may be pondering whether to buy Netflix stock now or wait. Despite losing the bidding war for Warner Bros., I believe Netflix will eventually go to $150 per share, though it is unclear when it will reach that milestone.
Amid challenges, the company has been able to continue its revenue growth. That should take the stock higher over time as it covers more of its addressable market.
However, competition remains a serious challenge, and the deal's failure leaves it with no obvious option to accelerate growth further. Thus, unless Netflix develops a new revenue source that is not yet obvious to investors, shareholders will have to patiently wait for organic growth to take the stock higher.
Should you buy stock in Netflix right now?
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Netflix, Walt Disney, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
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