As of June 20, 2025, the S&P 500 index has achieved a total return of 2% this year, bouncing back after a challenging start. In contrast, Netflix (NASDAQ: NFLX) has seen a substantial increase of 38% in the same period, despite ongoing trade negotiations, economic uncertainty, and geopolitical tensions.
Netflix generated $10.5 billion in revenue in Q1 2025 and ended 2024 with 302 million subscribers, accounting for 7.5% of daily TV viewing time in the U.S. Projections indicate that the company’s revenue and earnings per share (EPS) could grow at annual rates of 12.3% and 23.4%, respectively, between 2024 and 2027.
Currently, Netflix’s valuation stands with a price-to-earnings (P/E) ratio of 58.2, significantly higher than the S&P 500’s average, raising concerns about its sustainability. While some investors argue for potential profit-taking, others believe the company’s strong performance justifies holding or buying the stock.
