If you're looking for a simple, promising growth stock to buy in April, don't sleep on Netflix (NFLX 0.04%). Yes, it's already a massive global streaming business -- but management recently laid out why the growth story is far from over. The company has three key levers largely within its control, giving Netflix stock a clearer long-term compounding runway than many investors assume.
1. Small market share
Over the last 10 years, Netflix has grown its annual revenue from $7.6 billion in 2015 to $42.3 billion last year. It leads streaming with more than 325 million paid members. Even so, management argues the company is still early in penetrating total TV viewing.
"We're still less than 10% view share in every country in which we operate," CFO Spencer Neumann said at a recent Morgan Stanley investor conference. In other words, even where Netflix is a household name, most viewing time still goes to other platforms and formats.
Image source: The Motley Fool.
That gap matters because it implies two things: plenty of people still don't subscribe, and many subscribers could spend more of their viewing time on Netflix. The opportunity is showing up in the numbers, too, with company guidance calling for 2026 revenue to grow at double-digit rates, reaching roughly $51 billion.
2. Margin expansion
Netflix isn't just growing -- it's getting more efficient. And profit growth is what ultimately fuels long-term compounding for shareholders.
In 2025, the company's operating margin was 29.5%, and it has come a long way from just 5.2% in 2018. That expansion has helped drive high double-digit earnings growth, even as Netflix continues to invest heavily in content.
What's notable is that the company expects both investment and profitability to rise together. Management guided cash content spend to grow 10% this year to $20 billion, while also guiding operating margin to reach 31.5% in 2026.
That combination -- a huge content budget that helps Netflix win and keep viewers, plus the ability to convert more revenue into profit -- shows a financially sound business that will keep growing over the long term.
NASDAQ: NFLX
Key Data Points
3. International growth
That growing content budget isn't aimed only at U.S. hits. Netflix is producing content in more than 50 countries, which is supporting member growth across international and emerging markets.
There's still a substantial opportunity for Netflix abroad. In many regions, Netflix continues to add members, but viewership remains much lower than in U.S. households -- a sign there's room for both stronger retention and deeper engagement over time.
This is where Netflix's scale can widen its moat. That $20 billion budget is also helping the company broaden its entertainment menu into areas like live events and podcasts, extending its reach and improving its odds of winning the next wave of global viewers.
Competition is real -- especially from Alphabet's (GOOG +4.94%) (GOOGL +4.79%) YouTube -- but Netflix has its own advantages. Analysts expect about 22% annualized earnings growth over the coming years. With the stock down over 20% from its recent high and trading at a forward earnings multiple of 33, Netflix is not a bargain. But it's priced reasonably enough to follow its earnings growth and potentially deliver market-beating returns.
