Educational information, not financial advice or a personal recommendation. Not regulated by the FCA. Do your own research. Capital at risk.
Sterling AlmanacExploreStart hereFind your fitGlossaryCompareMy ListMy PieEarnings calendarSupport

Netflix, Inc. (NFLX)

Communication Services Out of favour

Netflix is the world's leading streaming service, providing a vast library of films, series, and games to subscribers across the globe.

$71.71

Is Netflix, Inc. a good stock for a UK beginner?

The honest version: Netflix is the world's leading streaming service, providing a vast library of films, series, and games to subscribers across the globe.

No rating · no target price · nothing for sale here
Price+14.8%
Priced in USD - as a UK investor your £ return also moves with the pound-to-dollar exchange rate, on top of the share price itself.
52-week range-43% past year
$71.71
Low $65.08High $126.71
Where today's price sits versus its past year - context, not a signal.
If you had put $1,000 into Netflix, Inc.
$1,148+15%

Over about 2 years to 2026-07-31. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
$298.60B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
43.65M
Day range: The lowest and highest price the shares traded at during the latest day.
$71.11 – $72.75
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
$65.08 – $126.71
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
23.0
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
0.0%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
1.52
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 1.52
Calm
Wild
Bumpier than the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +4% past week · ▼ -43% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Netflix becomes the dominant global entertainment utility.

The bear case

Market saturation and loss of pricing power to cheaper rivals.

What does Netflix, Inc. do?

Netflix makes its money by charging monthly subscription fees for access to its platform, which features both licensed content and its own original productions. It has shifted its focus from simply chasing new subscribers to finding ways to make more money from its existing user base, such as through advertising and paid account sharing. What really moves the needle here is whether they can fund expensive hit shows and still keep subscriber numbers climbing in a crowded market.

VQGMI
Factor profile

On our factor screen it looks strongest on quality and growth, and weakest on momentum.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 37Quality: How profitable and financially healthy the company is (higher = stronger). 73Growth: How fast revenue and earnings are growing (higher = faster). 52Momentum: How the share price has been trending recently (higher = stronger recent run). 12Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 16
Quick checks
What's strong
  • Quality screens high (73/100)
  • Strong brand recognition and global reach
  • High profit margins compared to many peers
  • Proven ability to adapt its business model
What to watch
  • Momentum screens low (12/100)
  • Income screens low (16/100)
  • Potential for subscriber churn if content quality dips
  • Regulatory changes regarding data and advertising
  • High share price sensitivity to market sentiment

What do Netflix, Inc.'s numbers mean?

P/E
23.7
This shows how much you are paying for every pound of the company's annual profit; a higher number suggests investors expect strong future growth.
Net margin
28.5%
This reveals that for every pound of revenue, the company keeps nearly 29 pence as actual profit after all expenses are paid.
Return on equity
48.5%
This measures how efficiently the company uses the money invested by shareholders to generate profit, with a high percentage indicating strong performance.
Beta
1.5
This indicates the share price tends to be more volatile than the wider market, moving up or down more sharply than the average stock.

How much money does Netflix, Inc. make?

Revenue and profit by quarter, and how much of each sale turns into profit.

RevenueNet income
$0$3.14B$6.28B$9.42B$12.56BQ2 25Q3 25Q4 25Q1 26Q2 26
Gross margin
49.1%
Net margin
28.2%
Return on equity
49.5%

Does Netflix, Inc. pay a dividend?

No - Netflix, Inc. doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.

More in Communication Services

The Trade Desk, Inc.Meta PlatformsAlphabet (Google)Alphabet (Google)Electronic Arts Inc.Omnicom Group Inc.Comcast CorporationVerizon Communications Inc.
Appears in
Big tech stocks, explainedNetflix vs Disney

What are the scenarios for Netflix, Inc.?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

$129$72$52today · $72▲ Bull · $81• Base · $72▼ Bear · $61in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+10% to +15%Stronger than expected subscriber growth from new ad-supported plans.
Base
-5% to +5%Steady performance as the company manages content costs effectively.
Bear
-10% to -20%Increased competition leads to a slowdown in user sign-ups.

What are the pros and cons of Netflix, Inc.?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Strong brand recognition and global reach
  • High profit margins compared to many peers
  • Proven ability to adapt its business model
The catch3
  • High cost of producing original content
  • No dividend payments for shareholders
  • Significant competition from other media giants
Key risks3
  • Potential for subscriber churn if content quality dips
  • Regulatory changes regarding data and advertising
  • High share price sensitivity to market sentiment
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: USD · flags: none · Charts by TradingView Lightweight Charts™
Found this useful? The Almanac is free and ad-free - a coffee keeps it that way.Support →

Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.