Streaming powerhouse Netflix (NASDAQ:NFLX) is set to release its Q1 2025 earnings after markets close today, April 17. While the company has had a solid year so far, a possible pullback in share price could present an opportunity for long-term investors looking to buy Netflix stock.
Analysts expect Netflix to post $10.5 billion in revenue, up 12.1% year-over-year, with earnings per share (EPS) climbing 7.8% to $5.69. Historically, Q1 tends to be a softer quarter for Netflix, but full-year EPS is forecast to rise a strong 23.6%, pointing to healthy underlying business trends.
Why Netflix’s Subscriber Model Still Has Legs
Netflix’s decision to stop reporting quarterly subscriber numbers starting this quarter has raised some eyebrows. But it comes after a blockbuster 2024, where the platform added over 41 million new subscribers, pushing its total count beyond 300 million.
The real game changer? The ad-supported plan, now accounting for 55% of new sign-ups in regions where it’s available. It’s not only drawing in more users but also delivering higher revenue per user compared to some premium tiers. Add to that the impact of its password-sharing crackdown, and it’s clear Netflix is executing well on monetization strategies.
Buy Netflix Stock: Recession-Proof and Tariff-Resistant
While many tech names have been caught in the crossfire of tariffs and macroeconomic uncertainty, Netflix remains resilient. For example, The Walt Disney Company (NYSE:DIS) has lost about 25% of its market value in 2025, while Netflix stock is up 8.2% year-to-date.
That outperformance is not by chance. Netflix isn’t just riding a wave—it’s proven that its service is a “sticky” subscription that people hesitate to cancel, even during tough times. In contrast to the “Magnificent 7” tech stocks, all of which are down double digits in 2025, Netflix is delivering steady gains.
Wall Street Likes What It Sees
Ritholtz Wealth Management CEO Josh Brown has been vocal about his bullish stance, calling Netflix “the best stock in the market for 2025.” He highlighted how the ad-supported tier helps retain budget-conscious subscribers while actually improving average revenue per user.
Additionally, Netflix’s internal growth ambitions are turning heads. The company reportedly aims to double revenue and triple operating income by 2030, targeting $9 billion in annual ad revenue. That would position Netflix for a $1 trillion market cap, up from just over $400 billion today.
Bank of America analyst Jessica Reif Ehrlich supports this long-term view. She sees “ample runway for continued growth” thanks to improved monetization and a defensive business model that holds up in economic downturns.
Analyst Ratings and Price Targets
Nearly 70% of analysts rate Netflix stock as a “Strong Buy” or “Moderate Buy”, up from 61% three months ago. The average 12-month target price is $1,077.77, implying about 11% upside from current levels.
This bullish sentiment reflects confidence in Netflix’s ability to continue expanding its content library, grow internationally, and tap into new verticals like sports streaming and video gaming.
Bottom Line: Consider Buying Netflix Stock on a Dip
If Netflix stock dips following its Q1 2025 earnings release, it may offer a rare buying window. The fundamentals remain strong, the business model is durable, and new growth avenues are opening up.
Whether you’re looking to start a position or add to existing holdings, the combination of robust subscriber engagement, strategic monetization, and economic resilience makes a compelling case to buy Netflix stock now—or soon after earnings.
Featured Image: Freepik © Flowo
