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Is Now the Time to Buy Forgotten FAANG Stock Netflix?

Motley Fool argues Netflix (NFLX.OQ) is an undervalued, durable growth story with clear market catalysts. Netflix has delivered steady revenue acceleration (12.6% annualized over five years; 12.7% CAGR over three years) and posted 16% revenue growth in full-year 2025 and Q1. A March price hike, a new kids’ gaming app, and continued AI investments (including the InterPositive acquisition) should boost retention, cut production costs and improve margins. Q1 results beat guidance and net income spiked 83% YoY after a one‑time $2.8B merger termination fee, providing capital for reinvestment. With a ~28 P/E and $366B market cap, the piece presents a bullish view that cost cuts, pricing power and AI upside could drive renewed stock momentum.

Category

Netflix

Sentiment

Bullish

Event

Institutional outlook

Reading time

1 min