Netflix’s Profit at Record Highs, But Is It Time to Buy? | The Motley Fool
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A Testimony to Streaming’s Growth
Netflix’s trailing-12-month net income is about $13.65 billion, above the record $10.98 billion it earned in all of 2025. Revenue growth has decelerated from 17.6% in the fourth quarter of 2025 to 13.4% last quarter, but these figures still underscore the company’s dominance in streaming.
The Debate: Buy or Hold?
In light of these numbers, should investors consider buying Netflix stock, which sits 35% below its high? Remember that it’s essential to consider both sides of the argument:
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The Bull Case: With record profits and a substantial lead in the streaming space, Netflix is well-positioned for continued growth. Its diverse content library, global expansion, and innovative technology give it an edge over competitors. The market’s reduced multiple suggests potential undervaluation, offering a compelling entry point.
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The Bear Case: Decelerating revenue growth raises concerns about the company’s ability to sustain its expansion. Increased competition from newer players and potential regulatory changes could impact Netflix’s dominance. Given the stock’s significant drop, investors might want to wait for further clarity before diving in.
Conclusion: Weighing Your Options
In conclusion, Netflix’s record profits present an attractive opportunity, but it’s crucial to delve into the company’s fundamentals and market dynamics. As previously mentioned, the decision to buy or hold depends on individual investment strategies and risk tolerances. Ultimately, this is a testament to Netflix’s success in shaping our entertainment landscape, with its future trajectory remaining a topic of intense discussion among investors.
