Netflix (NFLX)

Communication Services · $259B market cap · SEC CIK 0001065280

Next reports on Jan 18, 2027, after the close, with analysts expecting $0.70 in earnings per share.

52-week range $61.39 to $116.73. 46% below its 52-week high and 3% above its low.

The case for NFLX

• Cheap for its growth: 17.5× earnings, where 20% a year of growth would justify about 38×.
• Earns 50% back on shareholder equity.
• Generated $9.5B of free cash flow in FY2025, 21% of revenue.
• 30% of revenue drops through to net profit.
• Revenue growing 14.7% year over year.
• Earnings per share up 44.6%.

The case against

• Down 42.1% over the past year.
• Near the bottom of its 52-week range, 46% below the high. Falling prices usually have a reason; find it first.
• Swings harder than the market (beta 1.65).

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.

The financials

The financials, five years deep

Pulled from Netflix's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Netflix says it does

ABOUT US Netflix, Inc. (“Netflix”, the “Company”, “registrant”, “we”, or “us”) is one of the world’s leading entertainment services offering TV series, films, games and live programming across a wide variety of genres and languages. Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. Our core strategy is to grow our business globally within the parameters of our operating margin target. We strive to continuously improve our members' experience by offering compelling content that delights them and attracts new members. We aim to offer a range of pricing plans, including our ad-supported subscription plan, to meet a variety of consumer needs. We seek to drive conversation around our content to further enhance member joy, and we are continuously enhancing our user interface to help our members more easily choose content that they will find enjoyable. BUSINESS…

Risk factors NFLX lists in its 10-K

• If our efforts to attract and retain members are not successful, our business will be adversely affected
• If we do not continuously provide value to our members, including making improvements to our service in a manner that is favorably received by them, our revenue, results of operations and business will be adversely affected
• Changes in competitive offerings for entertainment video could adversely impact our business
• We face risks, such as unforeseen costs and potential liability in connection with content we acquire, produce, license and/or distribute through our service
• If we are not able to manage change and growth, our business could be adversely affected
• Our business could be adversely impacted by costs and challenges associated with strategic acquisitions and investments
• We rely upon a number of partners to make our service available on their devices
• We are subject to payment processing risk
• If government regulations relating to the internet or other areas of our business change, we may need to alter the manner in which we conduct our business, or incur greater operating expenses
• We are engaged in legal proceedings that could cause us to incur unforeseen expenses and could occupy a significant amount of our management's time and attention
• Our advertising offering is subject to various risks and uncertainties, which may adversely affect our business
• If studios, content providers or other rights holders refuse to license streaming content or other rights upon terms acceptable to us, our business could be adversely affected
• Intellectual property claims against us could be costly and result in the loss of significant rights related to, among other things, our technology, business processes, and content
• If the technology we use in operating our business fails, is unavailable, or does not operate to expectations, our business and results of operations could be adversely impacted
• Changes in how network operators handle and charge for access to data that travel across their networks could adversely impact our business
• Privacy concerns could limit our ability to collect and leverage member personal information and disclosure of member personal information could adversely impact our business and reputation
• Our reputation and relationships with members would be harmed if member personal information, particularly billing data, were to be accessed by unauthorized persons
• The long-term and largely fixed cost nature of our content commitments may limit our operating flexibility and could adversely affect our liquidity and results of operations
• We may seek additional capital that may result in stockholder dilution or that may have rights senior to those of our common stockholders
• We could be subject to economic, political, regulatory and other risks arising from our international operations
• We are subject to taxation related risks in multiple jurisdictions
• We may lose key employees or may be unable to hire qualified employees, and the failure to maintain and improve our company culture may adversely affect our business
• Labor disputes may have an adverse effect on the Company’s business
• Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable, although we have announced plans to modify some of these provisions over time
• Preparing and forecasting our financial results requires us to make judgments and estimates which may differ materially from actual results
• The WBD transaction may not be completed on the currently contemplated timeline or terms, or at all
• The WBD transaction may cause our financial results to differ from expectations, we may not achieve the anticipated benefits of the WBD transaction, and the WBD transaction may disrupt our current plans or operations

Filings

Other Communication Services companies