Netflix's (NFLX +2.38%) stock performance certainly has momentum on its side. Share prices are up 17% this year (as of Nov. 22), outpacing the broader market. The business continues to post strong financial results. This makes it easy for investors to remain bullish.
And yet, despite that bullish take, the streaming stock currently trades 22% off its early July 2025 peak. Should you buy Netflix stock before the calendar turns to 2026?
Image source: Netflix.
Netflix continues to dominate the streaming landscape
Despite the stock's recent dip, Netflix as a company is firing on all cylinders. While the company stopped reporting subscriber numbers at the end of last year, it's likely that the membership base continues to expand. Revenue through the first nine months of 2025 increased by 15% year over year, indicating greater adoption of the streaming platform.
Profits are soaring as well. Operating income is expected to rise by 26% in 2025, according to the management team.
NASDAQ: NFLX
Key Data Points
Market expectations are high
This is a high-quality business. But investors shouldn't rush to buy the stock just yet. That's because it's expensive, trading at a price-to-earnings ratio of 46. The market continues to view the company in an extremely favorable light, which is no surprise given that Netflix dominates the industry.
Can Netflix shares keep marching higher? Of course they can. However, I don't think there's any margin of safety for prospective investors who buy in right now. A wait-and-see approach might be the better option with this stock right now.
