The Stock Market Is Historically Pricey: Here’s Why You Can Trust Netflix to Deliver

Markets hit nosebleed territory—yet one streaming giant defies gravity.

Netflix's Unshakeable Foundation

While traditional valuations scream bubble, Netflix builds moats that Wall Street analysts can't quantify. The platform doesn't just host content—it dominates viewer attention spans globally.

Cracking the Code on User Retention

Original programming becomes addictive fuel. Algorithm-driven recommendations keep subscribers hooked longer than traditional broadcast models ever managed. Competitors scramble while Netflix redefines entertainment consumption.

The Numbers Don't Lie

Historical data shows premium stocks outperform during market froth—and Netflix operates in a league beyond conventional metrics. When passive investing feels like gambling, active platforms demonstrate real staying power.

Streaming's Final Boss

Netflix bypasses legacy media's existential crisis by controlling both production and distribution. No middlemen, no outdated advertising models—just direct consumer relationships at scale.

Meanwhile, fund managers still charge 2% fees for index fund exposure. Some things never change in finance.

Image source: Getty Images.

Why Netflix looks rock-solid

Netflix has moved a long way past the scare it faced in 2022 when it reported two straight quarters of subscriber declines. These days, the company is delivering strong growth across the board, and its business is much more resilient than it was a few years ago.

First, Netflix is truly diversified around the globe as the majority of its revenue comes from outside North America. That means its sensitivity to any one region is limited. And with the most popular subscription streaming platform on the planet, it also has a sticky product that consumers are going to be reluctant to cancel, even if they're looking to cut back on their spending.

The company's introduction of its ad-supported subscription in late 2022 has also opened the door to a whole new market. Management expects advertising revenue to double this year, and the ad-supported tier also gives Netflix a lower-cost tier to attract price-sensitive subscribers.

While the stock might look expensive with a price-to-earnings ratio of 55 as of this writing, Netflix has several avenues to continue growing, from raising prices to increasing its international subscriber reach and selling more ad inventory. This resilient business model means the company can deliver strong results, even if the stock market pulls back.