Is Netflix, Inc. (NFLX) A Good Stock To Buy Now?

Is NFLX a good stock to buy? We came across a bullish thesis on Netflix, Inc. on Long-Term Pick’s Substack by Dan. In this article, we will summarize the bulls’ thesis on NFLX. Netflix, Inc.'s share was trading at $92.58 as of April 21st. NFLX’s trailing and forward P/E were 29.86 and 28.90 respectively according to Yahoo Finance.

Leadership under co-CEOs Ted Sarandos and Greg Peters provides a clear dual structure, separating creative content strategy from product, monetization, and platform execution, allowing Netflix to balance entertainment quality with commercial efficiency. The business model blends internally produced originals with licensed and third-party content from major studios, supporting a highly diversified and globally resilient content library.

Strategic partnerships across advertising and media ecosystems further expand monetization reach, while the ad-supported tier has already begun scaling meaningfully, with advertising revenue exceeding $1.5 billion and expected to roughly double again as ad tooling and market penetration improve. Engagement remains a key structural advantage, with users consuming tens of billions of viewing hours, reinforcing low churn and strong pricing power. Financially, Netflix is demonstrating strong operating leverage, with margins expanding to nearly 30% and free cash flow projected around $11 billion by 2026, supporting reinvestment, share repurchases, and balance sheet strength.

Previously, we covered a bullish thesis on Netflix, Inc. (NFLX) by Margin of Sanity in May 2025, which highlighted hidden value in Netflix’s content library driven by accounting amortization that understates intellectual property value. NFLX’s stock price has depreciated by approximately 22.33% since our coverage. Dan shares a similar bullish view but emphasizes monetization-led growth, advertising expansion, and operating leverage from global scale rather than content accounting effects, while reinforcing profitability and platform diversification.

Netflix, Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 146 hedge fund portfolios held NFLX at the end of the fourth quarter which was 154 in the previous quarter. While we acknowledge the risk and potential of NFLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NFLX and that has 10,000% upside potential, check out our report about this cheapest AI stock.