Most Investors Think Netflix (NFLX) Is Too Expensive. I Think They're Wrong.
Past reputations can cloud investor judgments when analyzing a stock.
Overview
Many investors have pegged Netflix (NASDAQ: NFLX) as "expensive" for years, due to it stock trading at a premium valuation in the late 2010's during the streaming growth boom. Even though it still has this reputation in 2026, Netflix is now profitable, generating consistent earnings for shareholders and returning cash through stock buybacks.
In fact, I would go against the grain and say Netflix shares are not expensive (as some people think, but cheap. Here's why.
Details
As the leading premium video streaming service globally, Netflix continues to grow revenue through market share gains and by raising monthly subscription fees. Last quarter, revenue grew 13.4% year-over-year to $12.6 billion, with total sales up nearly 500% over the last 10 years.
Source
Originally published at www.fool.com.