Netflix is a global streaming entertainment service offering a wide variety of TV series, documentaries, and feature films across diverse genres and languages. The company has evolved from a DVD-by-mail rental service to the world's leading streaming platform with over 300 million paid memberships in more than 190 countries as of 2025 [1]. Netflix's business model is primarily subscription-based, generating revenue through monthly fees while also expanding into advertising-supported tiers and gaming [2].

• Netflix reported Q4 2024 earnings of $4.27 per share, beating analysts' expectations of $4.20 by 1.67% [3]
• Revenue reached $39.0 billion for fiscal year 2024, representing a 15.65% year-over-year increase [4]
• The company added 8.9 million new subscribers in Q4 2024, bringing total global memberships to 301.6 million [5]
• Operating margin reached the high 20s percentage range, demonstrating strong profitability improvement [2]

• Netflix's 5-year compound annual growth rate (CAGR) for revenue stands at 14.11% [1]
• The ad-supported subscription tier has shown significant growth, with monthly active users increasing from 5 million to 40 million in just one year [2]
• International expansion continues to drive growth, with revenue diversification across regions: United States & Canada (40.3%), Europe/Middle East/Africa (28.6%), Latin America (19.2%), and Asia-Pacific (11.9%) [4]
• Content licensing and strategic partnerships provide additional revenue streams beyond core subscriptions [2]
• The company is expanding into new verticals including gaming and sports broadcasting, with plans to stream NFL games beginning in 2024 [5]

• Netflix reported $8.71 billion in net income for fiscal year 2024, representing a substantial increase from previous years [5]
• The company maintains a strong balance sheet with $9.58 billion in cash and short-term investments [1]
• Total debt stands at $15.58 billion, resulting in a debt-to-equity ratio of 63%, which is considered manageable [1]
• Interest coverage ratio of 24.5x indicates Netflix can easily meet its debt obligations [1]
• Free cash flow for 2024 exceeded $6 billion, with the company focusing on share repurchases rather than dividends [2]

Netflix is led by co-CEOs Greg Peters and Ted Sarandos, who took over from founder Reed Hastings in 2023. The management team has demonstrated strategic vision through successful initiatives like the password-sharing crackdown and the introduction of the ad-supported tier. Their content strategy, focusing on both original programming and licensed content, has enabled Netflix to maintain its leadership position despite intensifying competition [3][4].

Netflix currently trades at a P/E ratio of approximately 48x, which is above its historical average and the broader market, suggesting a premium valuation [5]. The stock's intrinsic value based on discounted cash flow (DCF) analysis ranges from $477-$625 according to various models, compared to the current market price of approximately $970 [4]. This indicates the stock may be significantly overvalued by 34-51% based on fundamental analysis, though analysts have an average price target of $1,021, suggesting some upside potential [4][5].

Netflix faces several key risks that could impact its future performance. Intensifying competition from other streaming services like Disney+, Amazon Prime Video, and HBO Max threatens subscriber growth and retention [2]. The high costs associated with content acquisition and production continue to pressure margins, with content amortization increasing by $126 million year-over-year in Q3 2024 [5]. Additionally, regulatory challenges in various global markets and foreign currency exchange risks due to international operations could adversely affect financial results [5].

Netflix demonstrates strong operational performance with impressive subscriber growth, revenue expansion, and improving profitability. The company's strategic initiatives, including the ad-supported tier and expansion into gaming and sports, position it well for continued growth. However, the current valuation appears stretched relative to fundamentals, suggesting limited upside potential in the near term. Given the significant gap between the current price and intrinsic value estimates, investors may want to consider a hold position, waiting for a more attractive entry point despite the company's strong business fundamentals.