TLDR
- Netflix stock currently trades at $1,202.45 with a $523 billion market cap, down 2.35% today
- Company achieved first-ever No. 1 theatrical release in North America with “KPop Demon Hunters”
- Netflix secured exclusive streaming rights for 2026 World Baseball Classic in Japan, expanding live sports coverage
- Stock trades at expensive valuations with 52x earnings and 61x free cash flows ratios
- Revenue guidance upgraded to $44.8-$45.2 billion for 2025, with long-term outlook projecting $59.4 billion by 2028
Netflix stock closed down 2.35% at $1,202.45 on Thursday, giving the streaming company a market cap of $523 billion. The price movement comes as investors digest recent developments in the company’s expansion strategy.
The entertainment giant recently made history with its first-ever No. 1 theatrical release in North America. “KPop Demon Hunters” topped box office charts, marking a new chapter for Netflix’s film distribution strategy.
This theatrical success comes alongside Netflix’s push into live sports streaming. The company secured exclusive streaming rights for the 2026 World Baseball Classic in Japan.
The sports deal represents Netflix’s first major live sports commitment in the Japanese market. It signals the company’s willingness to compete for premium live content.
Netflix’s current market position places it outside the “Magnificent Seven” tech stocks. However, it remains among the 20 largest companies by market cap globally.
The stock has experienced dramatic swings over recent years. In 2022, Netflix’s market cap plunged from $306 billion to $74 billion during the inflation panic.
Recovery Story Drives Current Valuation
The company’s recovery from those 2022 lows has been remarkable. Shares gained over 215% from March 2022 levels for investors who bought during the downturn.
Netflix adapted to industry changes through controversial moves. The company cracked down on password sharing and introduced ad-supported subscription tiers.
These changes initially frustrated subscribers and investors. However, the strategy appears to be paying off in terms of revenue growth.
Current valuation metrics show Netflix trading at premium levels. The stock carries a price-to-earnings ratio of 52 times and trades at 61 times free cash flows.
Financial Outlook Shows Continued Growth
Management upgraded 2025 revenue guidance to $44.8-$45.2 billion. This revision reflects ongoing membership growth and new monetization opportunities.
Long-term projections paint an optimistic picture for the streaming service. Analysts forecast revenue reaching $59.4 billion by 2028.
Earnings are expected to grow from the current $10.2 billion to $17.7 billion over the same period. This represents annual revenue growth of approximately 12.5%.
The company continues investing heavily in original content and live events. These investments support the growth targets while maintaining competitive positioning.
Netflix faces ongoing regulatory scrutiny in international markets. These investigations could impact operations in key growth regions.
Competition in the streaming space remains intense from established players. Disney, Amazon, and newer entrants continue fighting for market share.
The company’s expansion into video games and real-world entertainment destinations shows diversification efforts. Some of these initiatives will succeed while others may not deliver expected returns.
Simply Wall St community members value Netflix shares between $652 and $1,360 per share. The wide range reflects differing views on the company’s growth prospects and competitive position.
Netflix’s push into live sports streaming in Japan represents a test case for broader sports expansion. The 2026 World Baseball Classic deal could pave the way for similar agreements in other markets.
Netflix upgraded its 2025 revenue guidance to $44.8-$45.2 billion, reflecting continued momentum in membership growth and new monetization opportunities from recent strategic initiatives.
