3 Reasons to Buy Netflix Stock Like There's No Tomorrow

Core Viewpoint - Netflix has demonstrated strong performance and growth potential, with a 50% increase in shares over the past year, supported by continuous innovation and strategic initiatives [1]. Group 1: Member Momentum - In 2024, Netflix added a record 19 million net paid members, ending the year with 302 million total members, with over half opting for the ad-supported tier priced at $6.99 per month in the U.S. [3][4]. - The company is capitalizing on its growing viewership to secure lucrative marketing deals, enhancing monetization beyond traditional subscriptions [3]. - Revenue increased by 16% in 2024, with earnings per share (EPS) rising by 65%, and analysts predict 14% revenue growth and a 25% increase in EPS for the current year [5][6]. Group 2: Programming Catalysts - Netflix had more No. 1 shows on Nielsen's "Streaming Top 10" chart than all other platforms combined in 2024, with these shows attracting nearly three times the viewing hours of its closest competitor [7]. - Anticipation for major releases like the final season of Stranger Things and season three of Squid Game is expected to keep viewers engaged [8]. - The introduction of live programming, including high-profile events like the Jake Paul vs. Mike Tyson boxing match and live NFL games, marks a significant evolution for Netflix into a broader entertainment entity [9]. Group 3: Compelling Valuation - Netflix's stock is currently trading at 36 times its consensus 2025 EPS estimate, which is below its five-year average P/E ratio of approximately 47, suggesting potential undervaluation [10]. - The company's ability to generate profitable growth with a diversified platform could support a higher valuation premium in the future [10].