From Yahoo Finance: 2025-04-25 12:13:00

Investors aim for strong returns in the stock market, with the S&P 500 showing a 557% total return over the past two decades. One standout investment, like Netflix, could turn $10,000 into over $6 million, showcasing the potential for life-changing wealth. Netflix’s success is attributed to its disruptive streaming service, leading to a 459% increase in paid subscribers and 609% revenue growth between 2014 and 2024. Despite its impressive financials and market position, Netflix’s current valuation at a price-to-earnings ratio of 49.2 raises concerns about future growth potential.

While Netflix stock has seen a 17% increase this year amid a market correction, some investors may view the current valuation as too high to justify buying now. The company’s operating margin is forecasted to rise to 29% by 2025, but its massive market cap and high expectations could limit future returns. Investors interested in Netflix should consider waiting for a more favorable valuation entry point or employ a dollar-cost averaging strategy to slowly build a position over time.

The Motley Fool’s Stock Advisor analyst team did not include Netflix in its list of 10 best stocks to buy now, as they project other picks to potentially generate significant returns in the future. Their total average return of 859% surpasses the S&P 500’s 158%, highlighting their market-crushing performance. Past recommendations like Netflix and Nvidia have yielded impressive returns, emphasizing the value of following expert advice for successful investing strategies.



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