Netflix is approaching a $500 billion market capitalization, with its stock price reaching a record high of $1,191.53 on May 16, 2025 . Despite this surge, analysts believe the stock remains a strong buy due to several key factors.
🚀 Why Netflix Stock Is Still a Buy at $500 Billion
1. Robust Advertising Growth
Netflix’s ad-supported tier has expanded to over 94 million monthly active users, marking a 34% increase since November 2024 . The company has launched its in-house ad platform, Netflix Ads Suite, in the U.S. and Canada, with plans to expand globally by June. This move is expected to enhance ad targeting and measurement, driving significant revenue growth
2. Strong Financial Performance
Analysts project Netflix’s EBITDA to rise 14% to $15.24 billion by the end of 2026, fueled by new content releases and subscription price increases . Operating margins have improved from 4.5% in 2015 to 27%, with expectations to reach 50% by 2030 .
3. Resilience Amid Economic Uncertainty
Netflix’s digital content model shields it from tariff-related cost increases, making it a stable investment during market volatility . Since April 2, the stock has gained approximately 25%, outperforming the S&P 500’s 5% rise.Barron
4. Expanding Content and Experiences
The company’s robust content pipeline includes upcoming seasons of popular series like “Stranger Things” and “Bridgerton” . Additionally, Netflix is venturing into live sports programming and physical experiences, such as Netflix-themed restaurants and venues, to diversify its offerings .
📈 Analyst Sentiment
Several investment firms have raised their price targets for Netflix, citing confidence in its growth prospects. Canaccord Genuity increased its target to $1,380, while Wolfe Research raised it to $1,340 . Seaport Research Partners also raised its target from $1,060 to $1,230, maintaining a Buy rating .
🔮 Looking Ahead
With a global subscriber base exceeding 300 million and a growing ad-supported tier, Netflix aims to double its revenue and achieve a $1 trillion market cap by 2030 . The company’s strategic investments in content, advertising, and user experience position it well for sustained growth.