Is NFLX a good stock to buy now? We stumbled upon a bullish thesis on Netflix, Inc. on the Investomine Substack. In this article we will summarize the Bulls’ thesis on NFLX. Netflix, Inc. shares were trading at $98.32 on March 9. NFLX’s Trailing and Forward P/E were 39.14 and 31.35 respectively according to Yahoo Finance.
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Netflix, Inc. offers entertainment services around the world. NFLX has entered a transformative phase, evolving from a growth-at-any-cost streaming platform to a highly profitable global entertainment business with strong pricing power, growing margins and accelerating free cash flow.
The company closed 2025 with $45.2 billion in revenue, up 16% year-over-year, and expects 12-14% growth in 2026, supported by broad subscriber expansion, higher engagement and a rapidly growing advertising business. Operating income reached $13.3 billion with a margin of 29.5%, up from 26.7% in 2024, and net income totaled $11 billion, reflecting the structural shift toward high-margin revenue generation. Free cash flow increased to $9.5 billion in 2025, allowing Netflix to self-finance content, reduce debt, and support strategic initiatives including acquisitions and shareholder returns, with net debt of approximately $5.5 billion.
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Netflix’s advertising business, which will exceed $1.5 billion in 2025 and is expected to reach $3 billion in 2026, leverages brand-safe premium content, engaged users and first-party data, representing a high-margin growth driver.
Content strategy has shifted from volume to global franchises and long-term intellectual property, with hits like Stranger Things, Bridgerton and One Piece driving engagement, reducing churn and creating cultural relevance. The company is also expanding into live events and gaming to further entrench engagement on the platform.
Netflix now operates as a diversified, cash-generating entertainment powerhouse with strong free cash flow, global brand dominance, and multiple long-term growth drivers. While short-term volatility may arise from acquisitions, competition or regulatory pressures, the company’s scale, financial flexibility and strategic vision position it as a high-conviction long-term investment with potential for sustained value creation.
Previously, we covered a bullish thesis on Netflix, Inc. (NFLX) by Margin of Sanity in May 2025, which highlighted the hidden value of Netflix’s content library and the long-term revenue potential of existing intellectual property. NFLX’s stock price has depreciated approximately 17.51% (adjusted for stock splits) since our coverage due to concerns regarding the Warner Bros acquisition (now abandoned). Investomine shares a similar vision, but emphasizes Netflix’s shift toward a highly profitable, cash-generating global entertainment business with expanding margins and free cash flow.