Netflix Hits 325 Million Subscribers in 2025 Amid Acquisition Bid
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NFLX?
Source: NASDAQ.COM
- Subscriber Growth: By the end of 2025, Netflix reached a record 325 million paying subscribers, significantly outpacing Amazon Prime's 200 million and Disney+'s 131.6 million, underscoring its dominant position in the streaming market despite fierce competition.
- Ad Revenue Surge: In 2025, Netflix generated $45.2 billion in total revenue, with advertising contributing $1.5 billion, a 2.5-fold increase from 2024, and is projected to double to $3 billion in 2026, indicating that ad revenue is rapidly becoming a crucial part of its business model.
- Acquisition Potential: Netflix is in a bidding war to acquire Warner Bros. Discovery for $82.7 billion, which could significantly enhance its content library and potentially boost ad revenue, although it has raised regulatory scrutiny, adding uncertainty to the market.
- Valuation Appeal: Despite a 41% drop from its peak, Netflix's stock trades at a price-to-earnings ratio of 31.1, lower than the Nasdaq-100's 31.6, suggesting that the current valuation is attractive for long-term investors, especially with expected earnings growth to $3.12 per share in 2026.
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Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise
38 Analyst Rating
27 Buy
10 Hold
1 Sell
Moderate Buy
Current: 76.020
Low
92.00
Averages
114.18
High
150.00
Current: 76.020
Low
92.00
Averages
114.18
High
150.00
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Pullback: Netflix shares have experienced a 40% decline from their 2022 lows, primarily driven by concerns over the proposed acquisition of Warner Bros., which could impose significant debt on the company and impact its financial stability moving forward.
- Acquisition Proposal Details: Announced in December, Netflix's plan to acquire Warner Bros. for $82.7 billion, despite competition from Paramount, highlights its desire to secure valuable IP like HBO; however, the high cost of this deal raises investor concerns in a fiercely competitive market.
- Core Business Performance: Despite acquisition-related risks, Netflix's core business remains robust, with a 16% revenue growth in 2025 and an expected growth rate of 12% to 14% in 2026, indicating its sustained competitiveness in the streaming market.
- Valuation Adjustment: Netflix's price-to-earnings ratio has dropped from 60 in 2025 to 31, making the stock more attractive despite the risks associated with the Warner Bros. acquisition, potentially presenting a buying opportunity for investors.
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- Rapid Ad Revenue Growth: Although ad revenue accounted for only $1.5 billion of total revenue in 2025, it grew by 2.5 times compared to 2024, with expectations to double to $3 billion in 2026, indicating that advertising is becoming a crucial revenue stream for Netflix.
- Acquisition Plan Raises Concerns: Netflix's proposed $82.7 billion acquisition of Warner Bros. Discovery could significantly enhance its content library but has triggered an antitrust investigation by the U.S. Department of Justice, increasing market uncertainty and contributing to a 41% drop in stock price.
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Netflix Hits 325 Million Subscribers in 2025 Amid Acquisition Bid
- Subscriber Growth: By the end of 2025, Netflix reached a record 325 million paying subscribers, significantly outpacing Amazon Prime's 200 million and Disney+'s 131.6 million, underscoring its dominant position in the streaming market despite fierce competition.
- Ad Revenue Surge: In 2025, Netflix generated $45.2 billion in total revenue, with advertising contributing $1.5 billion, a 2.5-fold increase from 2024, and is projected to double to $3 billion in 2026, indicating that ad revenue is rapidly becoming a crucial part of its business model.
- Acquisition Potential: Netflix is in a bidding war to acquire Warner Bros. Discovery for $82.7 billion, which could significantly enhance its content library and potentially boost ad revenue, although it has raised regulatory scrutiny, adding uncertainty to the market.
- Valuation Appeal: Despite a 41% drop from its peak, Netflix's stock trades at a price-to-earnings ratio of 31.1, lower than the Nasdaq-100's 31.6, suggesting that the current valuation is attractive for long-term investors, especially with expected earnings growth to $3.12 per share in 2026.
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- Stock Pullback: Netflix shares have experienced a 40% decline from their 2022 lows, primarily driven by concerns over the proposed acquisition of Warner Bros., which could impose significant debt on the company and impact its financial stability moving forward.
- Acquisition Proposal Details: Announced in December, Netflix's plan to acquire Warner Bros. for $82.7 billion, despite competition from Paramount, highlights its desire to secure valuable IP like HBO; however, the high cost of this deal raises investor concerns in a fiercely competitive market.
- Core Business Performance: Despite acquisition-related risks, Netflix's core business remains robust, with a 16% revenue growth in 2025 and an expected growth rate of 12% to 14% in 2026, indicating its sustained competitiveness in the streaming market.
- Valuation Adjustment: Netflix's price-to-earnings ratio has dropped from 60 in 2025 to 31, making the stock more attractive despite the risks associated with the Warner Bros. acquisition, potentially presenting a buying opportunity for investors.
See More
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- State of the Union Highlights: In his State of the Union address, Trump claimed the U.S. economy is 'roaring like never before,' despite polls indicating many Americans feel otherwise; the speech lasted 107 minutes, marking a historic length and underscoring his focus on economic issues.
- Tariff and Tax Policy: Trump suggested that tariffs could replace income tax, following a Supreme Court ruling deeming many tariffs illegal, which could significantly impact future tax structures and attract voter support ahead of the midterm elections.
- Tech Companies' Commitment: Trump announced that tech companies will provide their own power for AI data centers to alleviate community concerns over rising electricity prices, a move that could enhance corporate image and promote sustainable development.
- Lowe's Earnings Beat: Lowe's reported fourth-quarter earnings that surpassed Wall Street expectations with over 10% sales growth, yet its weaker-than-expected full-year outlook led to a 3% drop in premarket trading, reflecting market uncertainty about future performance.
See More
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- Strong User Growth: Netflix ended 2025 with a record 325 million paying subscribers, significantly outpacing Amazon Prime's 200 million and Disney+'s 131.6 million, demonstrating its absolute leadership in the streaming market despite fierce competition.
- Rapid Ad Revenue Growth: Although ad revenue accounted for only $1.5 billion of total revenue in 2025, it grew by 2.5 times compared to 2024, with expectations to double to $3 billion in 2026, indicating that advertising is becoming a crucial revenue stream for Netflix.
- Acquisition Plan Raises Concerns: Netflix's proposed $82.7 billion acquisition of Warner Bros. Discovery could significantly enhance its content library but has triggered an antitrust investigation by the U.S. Department of Justice, increasing market uncertainty and contributing to a 41% drop in stock price.
- Attractive Valuation: With a current P/E ratio of 31.1, the lowest since early 2023, and a slight discount compared to the Nasdaq-100's 31.6, Netflix's stock presents potential appeal for both short-term and long-term investors.
See More
Netflix Hits 325 Million Subscribers in 2025 Amid Acquisition Bid
- Subscriber Growth: By the end of 2025, Netflix reached a record 325 million paying subscribers, significantly outpacing Amazon Prime's 200 million and Disney+'s 131.6 million, underscoring its dominant position in the streaming market despite fierce competition.
- Ad Revenue Surge: In 2025, Netflix generated $45.2 billion in total revenue, with advertising contributing $1.5 billion, a 2.5-fold increase from 2024, and is projected to double to $3 billion in 2026, indicating that ad revenue is rapidly becoming a crucial part of its business model.
- Acquisition Potential: Netflix is in a bidding war to acquire Warner Bros. Discovery for $82.7 billion, which could significantly enhance its content library and potentially boost ad revenue, although it has raised regulatory scrutiny, adding uncertainty to the market.
- Valuation Appeal: Despite a 41% drop from its peak, Netflix's stock trades at a price-to-earnings ratio of 31.1, lower than the Nasdaq-100's 31.6, suggesting that the current valuation is attractive for long-term investors, especially with expected earnings growth to $3.12 per share in 2026.
See More
Concerns Over Market AI Diminish: Nvidia, DeepSeek, and Anthropic May Spark New Anxiety, Plus 5 Additional Updates for Today.
AI Revolution Perception: The article suggests that the fears surrounding the artificial intelligence revolution may be overstated, indicating a more optimistic outlook on its impact.
Potential Benefits: It highlights the potential benefits of AI, including advancements in various fields and improvements in efficiency and productivity.
Public Sentiment: There is a growing sentiment that AI could enhance human capabilities rather than replace them, fostering collaboration between humans and machines.
Future Outlook: The discussion points towards a future where AI is integrated positively into society, alleviating concerns about job displacement and ethical dilemmas.
See More
Netflix's Warner Agreement Could Be Over: Reasons for a 'Graceful Exit' for the Streamer.
- Paramount Skydance's Position: Paramount Skydance is currently the leading candidate to take control of Warner Bros. Discovery.
- Impact on Hollywood: This potential takeover is expected to significantly disrupt the Hollywood landscape.
- Ongoing Takeover Battle: The situation is part of a complicated and ongoing battle for control within the entertainment industry.
- Future Implications: The outcome of this takeover could have far-reaching consequences for various stakeholders in Hollywood.
See More
