Once a luxury, streaming video became even more of a staple during the pandemic and has remained so ever since. With viewers demanding more content for less cash, platforms offering a compelling price-to-entertainment ratio have thrived. Add in the growing acceptance of ad-supported tiers, and the economics get even more attractive for both companies and subscribers.

Netflix (NFLX), the original streaming juggernaut, has continued to evolve. Its global reach, relentless content engine, and strategic pivot toward ad-supported offerings have once again caught the market’s eye. Wall Street is doubling down, with Pivotal Research analyst Jeffrey Wlodarczak recently reiterating a "Buy" rating and lifting his price target to a Street-high $1,600. Wlodarczak views Netflix as “underpenetrated globally,” with strong growth ahead driven by pricing power and rising ad revenue. 

Netflix has already put on a show this year, jumping 43% year-to-date (YTD). Still, around 25% upside remains if NFLX stock can hit Pivotal's mark. Does the streamer still have some gas left to hit those highs before the year wraps?

About Netflix Stock

Founded in 1997, Netflix evolved from DVD rentals to an international streaming behemoth with a $533 billion market capitalization. Transforming entertainment through artificial intelligence (AI) driven personalization, it leads the on-demand content race, captivating millions worldwide and keeping users consistently engaged and loyal.

Strategic plays — like the 2022 ad-supported tier and 2023’s password-sharing crackdown — paired with live events have strengthened Netflix's moat. In the streaming wars, Netflix still holds the crown.

NFLX stock has charted an impressive path of its own since going public. After soaring during the pandemic-fueled streaming boom, the past five years brought plenty of twists, yet shares are still up 168%. More recently, the mega-cap streamer’s shares have rallied more than 200% in just two years, with a 91% jump in the past 52 weeks alone, blowing past broader market gains.

Netflix even reached an all-time high of $1,282.57 on June 24. Strong subscription growth, resilient revenue, and perceived immunity to global shocks keep Wall Street leaning bullish.

With shares on a tear, NFLX stock doesn’t come cheap, priced at 48.63 times forward earnings and 13.44 times sales. But that premium feels earned. With bold bets on content, ad-supported streaming, live events, and even gaming, Netflix is building a fortress. Its strategy is paying off, turning valuation skeptics into believers as new revenue streams gain serious momentum.

Netflix Reported Stellar Numbers in Q1

Netflix delivered a confident beat in the fiscal first quarter of 2025, silencing skeptics with a performance that hit all the right notes. On April 17, the streaming titan reported revenue of $10.5 billion, up 12% year-over-year (YOY). EPS surged 25% to $6.61, crushing estimates by more than 16%. Operating income jumped 27% to $3.3 billion, and operating margins widened to an impressive 32%, a clear sign Netflix knows how to scale without losing control of its costs.

The company's core metrics remain rock-solid — strong engagement, healthy retention, and stable plan preferences. Price hikes landed well, boosting revenue without denting satisfaction. Its ad-supported tier adds resilience, especially in price-sensitive markets. With over 300 million paid households and growing global content investment, Netflix’s footprint continues to expand across regions like the U.K., Mexico, and Korea.

Interestingly, Netflix chose not to share subscriber numbers in Q1, a deliberate pivot to focus on financial health and engagement. Updates on subscriber numbers will now come occasionally. Plus, amid economic questions during the Q1 earnings call, management remained calm. Co-CEO Greg Peters called business conditions stable, adding that entertainment has historically shown resilience in economic downturns. It was a rare moment of reassurance in an otherwise cautious earnings season.

Looking ahead to 2025, Netflix anticipates a clear runway for growth. The firm projects revenue between $43.5 billion and $44.5 billion, along with an operating margin of 29%. Fueled by strong subscriber momentum, strategic price lifts, and increasing ad revenue, the outlook is ambitious yet grounded.

The company plans to keep viewers glued with a rich content slate while subtly extracting more value per user without hurting retention. At the heart of this push is the Netflix Ads Suite, its homegrown ad-tech platform. With ad-supported plans gaining traction, Netflix is quietly building the next pillar of its empire.

Netflix is gearing up to drop Q2 earnings on July 17 after the bell. For the period, management estimates revenue to be around $11.03 billion and EPS at around $7.03. Wall Street is watching closely, expecting revenue to hit $11.04 billion while EPS is forecast to rise to $7.05.

Looking further ahead, fiscal 2025 EPS is anticipated to grow by 27% to $25.32. The bottom line for fiscal 2026 is projected to reach $30.60 per share, up 20%. If these numbers play out, Netflix might just be scripting a blockbuster run beyond the charts.

What Do Analysts Expect for Netflix Stock?

Pivotal’s Jeff Wlodarczak sees Netflix gaining steam globally, lifting his price target by 18.5% to $1600. The bullish call was due to Netflix's knockout Q1, with strong subscriptions and rising ad-tier traction.

Wlodarczak sees Netflix's brand and content library as global moats — sticky, valuable, and tough to replicate. More importantly, international markets still hold untapped upside, especially in emerging economies. The ad-supported tier is not just smart but profitable, boosting ARPU without losing affordability. With solid execution, even the $1 trillion market cap goal by 2030 doesn't look so far off. In addition to Pivotal, Wells Fargo raised its NFLX price target to $1,500 from $1,222, maintaining an “Overweight” rating.

Overall, Wall Street is leaning bullish on NFLX stock, but with a cautious foot on the brake and a consensus “Moderate Buy” rating. Of the 45 analysts rating the stock, 28 analysts recommend a “Strong Buy,” three suggest a “Moderate Buy,” and the remaining 14 analysts give a “Hold” rating. Meanwhile, the stock currently trades above the mean price target of $1,196.17.