Analyst Sees 30% Earnings Growth for Netflix(NFLX) in 2025, Says ‘Premium Multiple’ Justified

Netflix Inc (NASDAQ:NFLX) is one of the 10 Stocks to Buy and Sell in 2025: Top Analyst Calls.

Robert Fishman, MoffettNathanson analyst, said in a recent program on CNBC that he’s expecting 30% earnings growth for Netflix Inc (NASDAQ:NFLX) this year and believes the company can continue to post strong growth in the coming years.

“They’ve raised prices already, so we’re going to continue to see that roll through the results. You know, expecting mid-teens revenue growth and the result of these pricing increases and the early innings ramp up in the advertising monetization of their engagement really allows a lot of these revenue dollars to flow down to the bottom line. So, we’re expecting 30% earnings growth this year and that elevated level of earnings growth to really continue over the next few years which allows for this premium multiple that you were alluding to.”

Analyst Sees 30% Earnings Growth for Netflix(NFLX) in 2025, Says ‘Premium Multiple’ Justified

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Netflix Inc (NASDAQ:NFLX) recently crushed Wall Street estimates for its latest quarter and posted 16% revenue growth, while operating margin climbed to 34.1% from 27.2%. The company raised its full-year revenue forecast to $44.8–$45.2 billion from $43.5 billion to $44.5 billion. The stock is up 32% so far this year.

Netflix’s P/E ratio of over 50 is significantly higher than Disney’s and Amazon’s. Amid rising competition and high valuation, the stock could struggle to keep momentum in the absence of new catalysts.

ClearBridge Large Cap Growth Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its second quarter 2025 investor letter:

“Netflix, Inc. (NASDAQ:NFLX), one of the Strategy’s largest active weights, saw its shares rise due to overall continued robust execution with double-digit revenue growth, driven by a balance of subscriber growth and price, and continued margin expansion. We took some profits in the position but remain confident in the company’s long-term strategy, strong market position and attractiveness of the global streaming market.”

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Disclosure: None. This article is originally published at Insider Monkey.