Netflix (NFLX -0.58%) just keeps winning. Through the first five months of 2025, the global media empire has seen its shares soar an impressive 35%. This gain is well ahead of the overall market, a clear sign of Netflix's appeal during an uncertain economic time.
Zooming out, this leading streaming stock has generated massive amounts of wealth, as its price is up 58,640% in the past two decades (as of June 2). Netflix is a dominant business, but can its shares help you retire a millionaire?
Image source: Netflix.
Disrupting the media industry
The advent of the internet changed society and the economy. The media industry knows this all too well, as streaming entertainment kicked off the cord-cutting trend. Netflix spearheaded this movement, providing households with an unbelievable value proposition. Consumers loved being able to choose from a growing content catalog, watching what they wanted whenever they wanted at a low monthly fee.
This propelled Netflix over the past decade and a half. Its streaming business launched in the U.S. in 2007. Today, the company has a presence in 190 countries across the globe, showcasing the power of the internet and the perpetual desire by humans to be entertained on a video screen.
Netflix leads the industry with tremendous historical growth. As of Dec. 31, 2024, it had nearly 302 million subscribers. That number is up 80% from just five years before. Consequently, revenue has also soared. Credit not only goes to adding more members but also to Netflix's proven pricing power. Management's strategy involves raising prices when they believe the content offering delivers exceptional value, trusting that customers will be willing to pay more.
Netflix's present and future
Netflix's overarching goal remains to entertain the world. However, the company has undergone strategic pivots as it evolves to become more dominant.
The leadership team once seemed to accept that households shared passwords. This is no longer the case, as the business started cracking down on this behavior two years ago. What's more, it was believed that Netflix would never introduce ads. Today, Netflix has a budding ad-based tier that posted 65% growth in members on a quarter-over-quarter basis in Q4.
Perhaps most surprising is Netflix's entrance into live sports and events. For instance, the company has a deal in place to show the National Football League's Christmas Day games from 2024 through 2026. Investors interested in owning this stock should realize that there will likely be more changes in the future. It's encouraging to see management adapt with the times.
Looking ahead, a sizable opportunity remains. "We're less than 50% penetrated into connected households," CFO Spencer Neumann said on the Q4 2024 earnings call. And during the Q1 2025 earnings call, co-CEO Greg Peters said, "We still have hundreds of millions of folks to sign."
To be clear, though, the opportunity largely lies outside of the U.S., where Netflix will command lower prices. During the latest quarter, the Asia-Pacific region, which is the smallest financial contributor, was the fastest-growing in terms of revenue. Sales there were up 23% year over year.
Thinking about retirement
Early Netflix investors have certainly benefited from monster gains. If you're looking to buy the stock today, it might be a different story.
Assuming you have 20 or 30 years until retirement, can Netflix get you into the millionaire club? I'm almost positive the returns going forward won't come close to resembling what was achieved in the past. Netflix's P/E ratio is an expensive 57.5. And its market cap is a huge $518 billion. The long-term upside is naturally more limited these days. I believe a million-dollar outcome is not realistic.
Plus, it's worth mentioning that investors should not bank the success of their retirement portfolios on a single stock. The best path to wealth is to build a diversified portfolio and hold it for the long term.
