Netflix, Inc. (NFLX) Stock

Netflix, Inc. (NFLX) is a Communication Services stock trading at $67.50 (as of 2026-07-20), with a market capitalization of $281.07B and a trailing P/E of 20.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Netflix provides entertainment through streaming and other delivery methods. It offers TV series, documentaries, feature films, and mobile games to paid members via internet-connected devices, and it also offers DVD-by-mail in the United States.

Understand Netflix, Inc.: how it makes money

Netflix provides streaming entertainment (TV series, documentaries, feature films) and related digital entertainment (including mobile games) to members across internet-connected devices, and it makes money primarily through paid memberships (and in some markets, advertising plans) for access to content.

Netflix’s profit model is driven by growing paid memberships (net additions), monetizing member engagement through subscriptions, and, where available, adding ad-supported signups and generating ad activity from ad clients.

Business quality (Strong): Clear operating KPIs exist for the core profit drivers (paid net additions, paid memberships, and ad plan activity), but no official reportable segment revenue breakdown was provided here.

Bull case

Global scale of paid demand: Netflix reports approximately 222 million paid members across 190 countries, supporting broad geographic reach for subscriptions and ad-supported plans.
Multiple monetization paths within the same membership ecosystem: The company offers paid streaming memberships and also operates ad-supported plan activity (including ad client participation and ad MAUs), which can diversify how viewing translates into revenue.
Content distributed across many device types: Netflix delivers content through TVs, digital video players, set-top boxes, and mobile devices, which can help maintain access and engagement across customer hardware.

Bear case

Paid growth is a key dependency: Because the operating KPIs emphasize Global Paid Net Additions, slower net additions or weaker retention would directly challenge the company’s ability to sustain growth.
Ad-related performance can be volatile: Netflix tracks ad-supported plan share of signups and advertising activity (ad clients and ad MAUs), so changes in ad demand or engagement levels could impact ad monetization.
International and plan mix pressures: Netflix monitors paid net additions by region and the ad-supported plan share of signups in ads countries, suggesting profit outcomes may be sensitive to regional growth and plan mix.

Valuation — source: SEC EDGAR (first-party)
Price	$67.50
Market Cap	$281.07B
P/E Ratio	20.6
EV / EBITDA	19.4
Price / Book	9.32
Price / Sales	5.81
FCF Yield	4.0%
DCF Value (model)	$42.69
DCF Upside vs Price	-36.8%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$45.18B
Net Margin	24.3%
Revenue Growth (YoY)	13.4%
EPS Growth (YoY)	-89.0%
FCF Growth (YoY)	-32.7%

Financial Health — source: SEC EDGAR
Altman Z-Score	8.61 (safe)
Piotroski F-Score	6/9 (moderate)

Valuation vs Sector & Industry
Stock P/E	20.6
Sector P/E (Communication Services)	21.7
Industry P/E (Entertainment)	39.5
vs Sector	-5.1%
vs Industry	-47.9%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Insider Sells (12mo)	15
Top Institutional Holder	VANGUARD GROUP INC ($36.57B)
Institutional Holders Tracked	10
Congressional Trades (recent)	10

Company
Sector	Communication Services
Industry	Entertainment
CEO	Theodore A. Sarandos
Employees	14,000
Country	US
IPO Date	2002-05-23

Related Companies (Business model: Consumer Subscription Content (Streaming, News, Audio) + Ad-Supported Digital Media / Social; 8 closest by market cap; US-domiciled)

Data as of 2026-07-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.