Netflix's high valuation worries investors despite strong fundamentals and expected earnings growth

From Yahoo Finance: 2025-07-01 10:15:00

Netflix investors are faced with a dilemma as the stock has doubled in the past year, priced at 45 times expected earnings. Despite strong fundamentals and upcoming earnings report, some worry about a potential sell-off. Revenue expected to rise but growth slowing compared to pandemic era.

Despite concerns about valuation, Netflix’s market dominance justifies its premium price according to CEO Ken Mahoney. Investors remain undeterred by valuation, with the stock becoming more widely owned and expected to continue its rally. However, analysts question the sustainability of Netflix’s high valuation and future growth drivers.

Chinese automakers are expanding their European presence, capturing a record share of hybrid and electric vehicle sales. Manufacturers like BYD Co. and SAIC Motor Corp. are making significant gains in the market. European registrations of Chinese-branded cars have also topped 5% for the first time.

Apple is considering using AI technology from Anthropic PBC or OpenAI to power a new version of Siri, aiming to improve its AI capabilities. Meta Platforms CEO Mark Zuckerberg announces restructuring of the company’s AI group to focus on developing AI superintelligence. The prospective buyer of TikTok’s American operations may include Oracle Corp., Blackstone Inc., and Andreessen Horowitz.

Nintendo pulls its products from Amazon’s US site over unauthorized sales, impacting the launch of the Switch 2 console. Microsoft’s top sales executive plans a two-month sabbatical amid expected terminations in the organization. Chipmaker Wolfspeed Inc. files bankruptcy to reduce $4.6 billion in debt as part of reshaping tech subsidies.

Read more: Netflix’s Lofty Valuation Has Even Bullish Investors Nervous