Fearless tariffs soar all the way, when will Netflix peak?

TradingKey - Netflix (NFLX) has surged 25% since April, outperforming the S&P 500's 4% gain, despite the streaming giant's involvement in U.S.-China trade tensions.

Barron's said that despite the difficulties for U.S. stocks in 2025, Netflix (NFLX. US) stands out and still deserves a "buy" rating.

Since April, the streaming giant's share price has surged 25 percent, outpacing the S&P 500's 4 percent gain, despite trade tensions between China and the United States.

Despite the recent upward trend in the stock price, some market views believe that Netflix still has considerable upside, especially against the backdrop of its continued earnings improvement.

[Netflix stock price 1-hour chart, source: mitrade]

Solid performance supports market confidence

Investors generally believe that Netflix has shown strong resilience in an uncertain market environment. During the pandemic, high-quality content drove rapid growth in the number of platform users.

Netflix now has more than 300 million subscribers and a market capitalization of nearly $500 billion, and the company aims to surpass $1 trillion by 2030.

Despite this, Netflix's valuation remains at a high level, with a current forward P/E ratio of 43x, well above the S&P 500's 21x. But proponents argue that the valuation premium reflects Netflix's potential for long-term growth. Netflix's profitability has also improved significantly: its profit margin has increased from 4.5% in 2015 to 27% today.

In addition, the company has continued to improve its performance by expanding new businesses such as ad subscriptions, AI applications, and live sports, and the advertising version has attracted 24 million users since its launch at the end of 2022, and its revenue has continued to grow.

Actively promote business diversification

In addition to the main business of streaming media, Netflix is also actively expanding its business territory. At present, the company has planned to enter the offline field and launch themed restaurants and immersive entertainment experience venues with popular film and television IP as the core. Analysts expect Netflix's EBITDA to grow 26% year-over-year this year and rise further in 2027.