Netflix (NFLX +3.09%) just reported Q4 2025 revenue and earnings per share that came in ahead of Wall Street analysts' estimates. This might not be surprising news to investors, as it seems the streaming juggernaut has consistently operated from a position of fundamental strength.
Shares have risen 691% in the past 10 years as of Jan. 21, but they're well off the peak right now. Should you invest $1,000 in Netflix stock?
Image source: Netflix.
Reaching 325 million subscribers
While the company stopped revealing every quarter what its customer count is, Netflix just told shareholders that it ended 2025 with 325 million subscribers. That's up 23 million from 12 months before.
What's more, advertising revenue, a relatively new business line, climbed more than 150% last year. That growth was in line with what management previously expected.
NASDAQ: NFLX
Key Data Points
Reasons to pump the brakes
Netflix might be firing on all cylinders, but the stock's valuation is still expensive. Shares trade at a price-to-earnings ratio of 35. Investors should wait for a more compelling entry point.
The pending acquisition of Warner Bros Discovery's film and TV studios, HBO Max, and content catalog in a new all-cash offer adds a lot of uncertainty to the mix as well. At a time when its business is thriving, there is a major risk that Netflix overpays and ends up saddled with excess debt, while figuring out how to integrate the new assets it just bought.
Investors shouldn't buy the stock with $1,000 today.
