Should You Buy Netflix Stock Before April 16?
Key Points
Netflix stock took a hit after the company's ill-fated pursuit of Warner Bros. Discovery.
However, the company's multi-pronged growth strategy is bearing fruit, fueling impressive revenue and profit growth.
Netflix's upcoming financial report will mark a key test for the streaming pioneer.
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When it comes to streaming video, Netflix (NASDAQ: NFLX) is the standard by which all other services are measured. While the company's business model has evolved with the times, its mission remains: "To entertain the world, one fan at a time."
The past year has been a rocky one for shareholders. A high valuation and the ensuing drama surrounding its acquisition of assets from Warner Bros. Discovery weighed on Netflix, which fell as much as 43% from its mid-2025 peak. Since abandoning its prize in late February, the stock has climbed more than 25% (as of this writing), and investors are looking ahead.
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The company faces a key hurdle when Netflix reports its first-quarter results after the market close on April 16. Is now the time to buy shares of the streaming pioneer before they run higher, or wait until after this crucial financial report? Let's dig in to see what the evidence suggests.
Image source: The Motley Fool.
What's on the horizon for Netflix?
Management has left no stone unturned in its efforts to attract audiences to Netflix. After the overwhelming success of the company's ad-supported tier, Netflix is expanding into new entertainment categories, ramping up live content and sports coverage, leaning into video games, and building out its library of video-first podcasts and official companion shows.
Netflix is also flexing its pricing power, recently increasing the prices of all U.S. plans by a dollar or two.
The company is already reaping the rewards of its advertising strategy. Netflix's ad revenue more than doubled in 2025, rising 150% to $1.5 billion, and co-CEO Greg Peters said the company expects ad sales to roughly double again, reaching $3 billion in 2026.
This multi-pronged strategy is yielding impressive results. In the fourth quarter, Netflix generated revenue of $12 billion, an increase of 18%, resulting in earnings per share (EPS) of $0.56, which jumped 30%. Management cited more subscriptions and growing ad revenue for driving the results.
The company is expecting more of the same in Q1, with revenue of $12.16 billion, up 15%, and EPS of $0.76, also up 15%.
Should you buy Netflix stock now or wait until after earnings?
For investors wanting to profit from the ongoing demand for in-home entertainment, the runway is long for the streaming pioneer. This begs the question: Should investors buy Netflix stock now, or wait until after the company's earnings report?
Investors looking to establish a long-term position should resist the siren call to make a quick buck and simply buy the stock. History shows there's no way to know for sure which way it will move after its financial report or how investors or Wall Street will interpret the results on a given day.
The fundamental question, then, is whether Netflix stock is a buy. From my perspective, there are plenty of reasons to be bullish. Wall Street is optimistic, with 73% of analysts who offered an opinion in April rating the stock a buy or strong buy.
Netflix has kicked off 2026 in fine form. The company's psychological thriller Something Very Bad Is Going to Happen -- roared into the Top 10 during its first week of release, taking the No. 2 spot. Live-action anime favorite One Piece (season two) debuted at No. 1 with a rare 100% score on review aggregation site Rotten Tomatoes. KPop Demon Hunters continues to attract new converts, with its 41st consecutive week in the movie Top 10. And later this month, the animated series Stranger Things: Tales From '85 is set to debut. This illustrates that the Netflix content engine continues to reach audiences.
Netflix stock still trades for a premium at 38 times earnings, but that's well below its three-year average multiple of 45. Moreover, it's trading at 30 times forward earnings, which is reasonable for a company expected to grow its sales and profits by double digits over the next five years.
Given the company's long history of success, robust revenue and profit growth, and robust slate of programming, the evidence suggests Netflix stock is a buy -- particularly while it's on sale.
Should you buy stock in Netflix right now?
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Danny Vena, CPA has positions in Netflix. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
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