Netflix posted strong revenue and operating income growth in 2025. However, some analysts cite a warning sign for investors. The company's engagement is growing, but lags the overall streaming market rise. This indicates intense competition may be taking a toll.
Conversely, other market analysis suggests the recent stock pullback presents a buying opportunity. This positive outlook rests on three factors: a solid 17% year-over-year revenue increase last quarter, the growth potential of its advertising business, and a more attractive valuation. Netflix guides for a 31.5% operating margin in 2026.