2025 has more or less been a wash for technology stocks. The Nasdaq 100 index, which tracks the 100 largest non-financial companies on the Nasdaq exchange, is up 3% year to date.
Nevertheless, some technology stocks have proven resilient through the ups and downs of 2025. Shares of streaming and entertainment juggernaut Netflix (NFLX 0.82%) are up 37%, and they should have more to climb.
Let's dig into what's driving Netflix's market-beating returns and explore why the stock could soar to new highs.
Why did Netflix stock surge when other tech stocks plummeted earlier this year?
I see two primary reasons behind Netflix stock's gains throughout 2025.
First, Netflix is a rare example of a business that's relatively immune to tariffs. In theory, tariffs can lead to higher prices (inflation) for consumers, causing them to cut back on discretionary spending. However, Netflix offers viewers a number of subscription tiers based on price. In other words, it's unlikely that rising tariffs will lead to higher expenses or a wave of subscriber churn for Netflix.
In addition, earlier this year, management released a detailed plan outlining how the company plans to double the size of its business over the next five years -- with the goal of achieving a trillion-dollar valuation by 2030. This vision got investors excited, hence the pronounced buying activity since April.

Image source: Getty Images.
Taking a look at Netflix's valuation
The chart below benchmarks Netflix against a peer group of other streaming and entertainment businesses on a price-to-sales (P/S) basis. With a P/S ratio of 13.3, Netflix is the clear outlier in this cohort with the next closest company, TKO Group Holdings, boasting a P/S multiple of less than half that amount.
Data by YCharts.
Even looking at the bottom line, Netflix's price-to-earnings (P/E) multiple of 58 represents a notable premium to the S&P 500's 28.
Is Netflix stock a buy right now?
As of this writing, Netflix stock is trading at an all-time high of roughly $1,222 per share.
I almost always discourage the idea of buying a stock at a record high. Chief among my concerns is that when you buy near a high, you can get caught up in a momentum trade at an inopportune time.
Data by YCharts.
But over the last 10 years, Netflix has completely transformed its business from a platform featuring licensed content to one that's producing billions of dollars of original content while also expanding into other areas such as live sports, entertainment, and immersive experiences.
As a result, subscribers have not only come to Netflix, they have remained on the platform. This has given the company lucrative operating leverage, underscored by a combination of accelerating revenue and profitability levels.
Looking ahead, shareholders have a lot to look forward to in the second half of the year. Highly anticipated series such as Squid Game, Wednesday, and Stranger Things, among many others, are scheduled to release new seasons over the coming months. Higher engagement levels and new customer acquisition could push the stock to a new peak by year-end.
So, despite the premium valuation, I still see Netflix as a rock-solid buy, given its edge over the competition. Buying the stock at current prices will require patience, though. Its trajectory in the remainder of 2025 may be quite bullish, but even bigger gains are in store for long-term investors.