Netflix (NFLX) Stock: Streaming Giant Targets Trillion-Dollar Valuation as Shares Hit Record Highs

TLDR

Table of Contents

Netflix (NFLX) stock is up 37% year-to-date in 2025, outperforming the Nasdaq 100’s 3% gain
Jefferies raised Netflix’s price target to $1,400 from $1,200, maintaining a Buy rating
Strong content lineup for H2 2025 includes Squid Game, Stranger Things, Wednesday, and NFL games
Netflix plans to double its business size over five years, targeting a trillion-dollar valuation by 2030
Stock currently trades at all-time high of $1,222 per share with premium P/E ratio of 58

Netflix stock continues its impressive run in 2025, climbing 37% year-to-date while most tech stocks struggle. The streaming giant now trades at an all-time high of $1,222 per share, catching the attention of Wall Street analysts who see more upside ahead.

The company has managed to stay resilient during a challenging year for technology stocks. While the Nasdaq 100 index has gained just 3% in 2025, Netflix has powered ahead with strong performance that few peers can match.

Jefferies analysts recently boosted their price target for Netflix to $1,400 from $1,200. They maintained their Buy rating on the stock, pointing to several positive factors that could drive shares higher.

The analysts highlighted Netflix’s recent US price increases as one catalyst for growth. These price hikes should help boost revenue per subscriber in the coming quarters.

Netflix has also outlined an ambitious five-year plan to double its business size. Management aims to achieve a trillion-dollar valuation by 2030, a goal that has excited investors since its announcement in April.

Netflix posts big gains with Q1 revenue hitting $10.54B (up 12.5% YoY) and EPS soaring 54.8%.
With blockbuster series returning and major moves into ads and gaming, NFLX is setting its sights on a $1 trillion market cap by 2030.
What’s your take on Netflix’s growth potential? pic.twitter.com/AiZzjk0DZa
— Zacks.com (@ZacksResearch) June 2, 2025

Strong Content Pipeline Drives Optimism

The second half of 2025 looks promising for Netflix’s content strategy. Popular shows like Squid Game, Stranger Things, and Wednesday are all scheduled to release new seasons in the coming months.

Netflix has also expanded into live sports programming. The platform will stream NFL games as part of its broader entertainment strategy.

This robust content lineup positions Netflix to meet the high end of its fiscal year 2025 revenue guidance. Jefferies analysts expect the strong programming to drive both engagement and new subscriber acquisition.

The company has been transforming from a platform that licensed content to one that produces billions of dollars in original programming. This shift has helped Netflix maintain subscriber loyalty and create operating leverage.

Valuation Questions Remain

Netflix trades at a premium valuation compared to its peers. The stock carries a price-to-sales ratio of 13.3, well above other streaming companies.

Its price-to-earnings multiple of 58 also represents a premium to the S&P 500’s average of 28. Some investors worry about buying at these elevated levels.

Despite the high valuation, analysts remain bullish on Netflix’s long-term prospects. Jefferies expects the company to sustain over 20% growth in earnings per share and free cash flow over the next five years.

Key growth drivers include high-margin advertising revenue, expansion into live sports, and continued price increases. The analysts forecast improvements in ad tier monetization as more subscribers opt for lower-priced, ad-supported plans.

For fiscal year 2026, Jefferies projects 2.2 million net additions in the US and Canada market. This forecast sits below the consensus estimate of 3.2 million new subscribers.

The company has proven relatively immune to economic headwinds like tariffs. Netflix offers multiple subscription tiers at different price points, giving consumers flexibility during tough economic times.

Recent corporate moves include adding Sesame Street to the platform later this year. Co-founder Reed Hastings also joined the board of AI company Anthropic, reflecting his continued interest in technology development.

Netflix stock has delivered a 92% return over the past year, demonstrating the company’s strong market position and execution of its growth strategy.

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