Is NFLX a good stock to buy now? We came across a bullish thesis on Netflix, Inc. on Investomine’s Substack. In this article, we will summarize the bulls’ thesis on NFLX. Netflix, Inc.’s share was trading at $98.32 as of March 9th. NFLX’s trailing and forward P/E were 39.14 and 31.35 respectively according to Yahoo Finance.
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Netflix, Inc. provides entertainment services worldwide. NFLX has entered a transformative phase, evolving from a growth-at-any-cost streaming platform into a highly profitable, global entertainment business with strong pricing power, rising margins, and accelerating free cash flow.
The company closed 2025 with $45.2 billion in revenue, up 16% year-over-year, and expects 12–14% growth in 2026, supported by broad-based subscriber expansion, increasing engagement, and a rapidly growing advertising business. Operating income reached $13.3 billion with a 29.5% margin, up from 26.7% in 2024, and net income totaled $11.0 billion, reflecting the structural shift toward high-margin revenue generation. Free cash flow rose to $9.5 billion in 2025, enabling Netflix to self-fund content, reduce debt, and support strategic initiatives including acquisitions and shareholder returns, with net debt at approximately $5.5 billion.
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Netflix’s advertising business, surpassing $1.5 billion in 2025 and expected to reach $3 billion in 2026, leverages premium, brand-safe content, engaged users, and first-party data, representing a high-margin growth engine.
Content strategy has shifted from volume to global franchises and long-term IP, with hits like Stranger Things, Bridgerton, and One Piece driving engagement, reducing churn, and building cultural relevance. The company is also expanding into live events and gaming to further entrench platform engagement.
Netflix now operates as a diversified, cash-generating entertainment powerhouse with strong free cash flow, global brand dominance, and multiple long-term growth drivers. While short-term volatility may arise from acquisitions, competition, or regulatory pressures, the company’s scale, financial flexibility, and strategic vision position it as a high-conviction, long-term investment with the potential for sustained value creation.
Previously, we covered a bullish thesis on Netflix, Inc. (NFLX) by Margin of Sanity in May 2025, which highlighted the hidden value in Netflix’s content library and long-term revenue potential from existing IP. NFLX’s stock price has depreciated by approximately 17.51% (adjusted for stock split) since our coverage due to concerns regarding the Warner Bros acquisition (now abandoned). Investomine shares a similar view but emphasizes Netflix’s shift to a highly profitable, cash-generating global entertainment business with expanding margins and free cash flow.
