A rocky fall in 2022
Not long ago, Netflix looked like it was in trouble. In early 2022, the streaming giant reported its first subscriber loss in more than a decade. The news shook investors, and Netflix’s stock collapsed, tumbling more than 70% from its 2021 high. Competitors like Disney+, HBO Max, and Amazon Prime Video were gaining ground fast, and many wondered if Netflix’s best days were behind it.
But as history now proves, that stumble wasn’t the finish line—it was a pivot point.
The comeback story
Since bottoming out in 2022, Netflix has staged one of the most remarkable comebacks in stock market history. Stocks have exploded more than 500% in just three years. The company didn’t just sit still—it re-engineered, doubled down on new revenue streams, and refined its strategy.
Most of the recovery has been thanks to Netflix’s ad-supported tier. By offering a cheaper plan with commercials, the company tacked on millions of new subscribers and unlocked a new wellspring of ad revenue. On top of that, Netflix has invested heavily in live sports — a genre that still manages to keep audiences watching in real time, something advertisers prize.
Then came the crackdown on password sharing. The decision annoyed many customers at first, but the gamble paid off. More households signed up for their own accounts, and subscriber counts began to climb once more.
Today, Netflix isn’t simply clinging to existence in a competitive market—it’s still the most-viewed subscription service in the U.S., per Nielsen. That dominance has investors buzzing.
An expensive stock
The enthusiasm is reflected in Netflix’s share price, with a warning sign. The stock is currently trading at roughly 59 times its forward-year earnings. That’s a high price, even higher than that of tech behemoth Nvidia at 55 times. For perspective, the Nasdaq 100 average is closer to 40.
So, Netflix is one of the pricier stocks in the S&P 500. That’s a red flag for some investors. But most analysts haven’t backed off. Many continue to label the stock a “buy,” pointing to the company’s global reach and clear plan for long-term growth. Netflix itself has made aggressive forecasts, with plans to double revenue and reach a $1 trillion market cap by 2030.
Strong earnings keep momentum going
The latest earnings report has added fuel to the fire. Netflix posted $11.08 billion in quarterly revenue through June 20, 2025, narrowly ahead of Wall Street expectations. It earned $7.19 per share, also ahead of expectations.
The stock closed at $1,274 just prior to the publication of the report. It’s far from the gloomy days of 2022 and a reflection of how much confidence investors have returned to the brand.
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How much money could you have made?
Netflix has been a dream holding for long-term investors as well. Let’s run the numbers based on the July 17, 2025, closing price of $1,274 per share:
- One year ago: $1,000 would be worth about $1,968 today.
- Five years ago: That same $1,000 would be worth about $2,585.
- Ten years ago: It would have soared to $11,102.
- Since going public in 2002: A $1,000 investment would be worth over $1.18 million today.
- That’s not just growth — that’s life-changing money.
The takeaway for everyday investors
Of course, there are no guarantees of future success based on past performance. Markets change in a flash, and even powerhouse firms can stumble. Advisors urge people not to put all their money into one hot stock, regardless of its sparkle.
Instead, financial planners often recommend low-cost index funds or exchange-traded funds. These give you an interest in hundreds of companies at once, which limits your downside exposure if one company gets into difficulty.
However, Netflix’s story is a testament to what can be achieved when a company returns even stronger than ever before. From mailing DVDs through the mail to dominating streaming and now expanding into sports and advertising, Netflix has a track record of reinventing itself—and that’s why investors keep taking notice.
