Netflix (NFLX 3.13%) has a long history as a binge-worthy investment with market-beating returns thanks to continuous innovation.

Shares of the streaming video giant are up 50% over the past year, and there's a case to be made that its outlook is as strong as ever. Indeed, that was the message from Chief Financial Officer Spencer Neumann at a recent investor conference, who suggested the company was "just getting started."

Let's take a look at three reasons to consider buying Netflix stock today.

NASDAQ: NFLX

Netflix
Today's Change
(3.13%) $27.83
Current Price
$918.00
Arrow-Thin-Down
NFLX

Key Data Points

Market Cap
$393B
Day's Range
$901.00 - $919.62
52wk Range
$542.01 - $1,064.50
Volume
5,200,684
Avg Vol
4,177,778
Gross Margin
45.88%
Dividend Yield
N/A

1. Earnings growth momentum

2024 was a transformative year for Netflix, as several of its strategic initiatives proved successful and the company reaccelerated its growth.

In the fourth quarter, it added a record 19 million net paid members, finishing the year with 302 million. More than half of those additions chose the lower-priced ad-supported tier, which starts at just $6.99 per month in the U.S. Netflix is leveraging that viewership base to sign lucrative marketing deals, bolstering its monetization beyond its traditional subscriptions. At the same time, the company has seen a favorable response to higher pricing in its standard and premium plans worldwide with key international markets like Latin America representing important growth drivers.

The results were impressive. Revenue climbed 16% in 2024, while its improved scale and more diversified operation propelled earnings per share (EPS) 65% higher. And the consensus prediction among Wall Street analysts tracked by Yahoo! Finance is that Netflix will deliver 14% revenue growth this year as EPS climbs 25%.

Metric 2024 2025 Estimate
Revenue $39.0 billion $44.3 billion
Revenue growth (YOY) 15.6% 13.7%
EPS $19.83 $24.80
EPS growth (YOY) 64.8% 25.1%

Data source: Yahoo! Finance. YOY = year over year.

2. Programming catalysts

Perhaps the best reason to invest in Netflix is the strength of its exclusive content. In 2024, the company had more No. 1 shows on Nielsen's weekly "Streaming Top 10" chart than all other streaming platforms combined, and shows from that list drew nearly three times more viewing hours than those of its closest competitor.

This year, anticipation is building for the final season of Stranger Things and season three of Squid Game -- two releases that are likely to help Netflix keep viewers highly engaged. The addition of live programming and sports to its catalog has also been a major development. Netflix dipped its toes into the space last year with the Jake Paul vs. Mike Tyson boxing match that became the most-streamed sporting event ever, as well as its first broadcast of live NFL games with its Christmas Gameday special.

These events, as well as its more recent launch of WWE Raw pro wrestling and The 2025 Screen Actors Guild Awards, signal the next phase of Netflix's evolution into a broader entertainment powerhouse.

Two people seated in a living room environment facing an electronic video monitor.

Image source: Getty Images.

3. Netflix's compelling valuation

Considering its strong operating and financial outlooks, Netflix's current valuation appears compelling. The stock is trading at 36 times its consensus 2025 EPS, a level well below its five-year average P/E ratio of about 47, indicating it may be undervalued. Netflix's ability to continue generating profitable growth with a more diversified platform could support an even higher valuation premium.

NFLX PE Ratio (Forward) Chart

Data by YCharts.

Final thoughts

There's a lot to like about Netflix, and I'm bullish on the stock. For investors who believe the company is indeed in the early stages of pursuing its full potential as it expands internationally, and who are undeterred by short-term market swings, Netflix shares are a great option.