Introducing Valuation Models! 
Key Takeaways:
- Analysts expect Netflix to increase revenue by 15.5% and earnings by 45% YoY in Q2 of 2025.
- The streaming giant expects to double its ad business in 2025.
- Our valuation model expects NFLX stock to underperform in the next two years.
Netflix (NFLX) is forecast to report its second quarter results on July 17, 2025. Analysts covering NFLX stock expect revenue to rise by 15.5% year over year to $11.04 billion while adjusted earnings is forecast to expand by 45% to $7.08 per share.
The streaming giant has beaten consensus revenue and earnings estimates in each of the last five quarters.
See analysts’ growth forecasts and price targets for any stock (It’s free!) >>>
Netflix’s Ad Business Under Focus
Netflix has demonstrated remarkable resilience despite economic headwinds, positioning itself for sustained growth across multiple revenue streams.
The streaming platform’s strategic diversification beyond traditional content delivery creates compelling investment opportunities for forward-looking shareholders.
Netflix’s advertising business will be a key growth catalyst, as management expects ad sales to double in 2025.
Its proprietary ad-tech platform rollout across 12 markets enables enhanced targeting capabilities and improved advertiser experiences.
This positions Netflix to capture significant share of the global advertising market while maintaining subscription growth momentum.
The company’s $6 billion investment in UK content over four years exemplifies its commitment to local storytelling that resonates globally.
Netflix’s approach of commissioning content for local audiences first, then leveraging international appeal, has proven successful with shows like “Baby Reindeer” and “Squid Game.” This strategy expands addressable markets while building cultural relevance worldwide.
Netflix’s gaming initiative, while currently modest, targets a $140 billion consumer market opportunity.
A focus on IP-based games and established titles creates potential for engagement increases. Additionally, live events programming, including sports partnerships and exclusive content, drives both subscriber acquisition and advertising revenue growth.
With $8 billion projected free cash flow in 2025 and a disciplined capital allocation strategy prioritizing profitable growth, Netflix maintains flexibility for strategic investments while returning excess cash to shareholders through buybacks, supporting long-term value creation.
Build your own Valuation Model to value any stock (It’s free!) >>>
Is NFLX Stock a Buy Before its Q2 Earnings?
Our valuation model estimates Netflix to increase revenue by 12.3% year over year through 2028, while maintaining an operating margin of 32.7%.
Moreover, the model estimates NFLX stock to maintain a forward price to earnings multiple of 33x, which is lower than the current multiple of 48x but in line with its three-year average.
We can see that the valuation model projects NFLX stock to gain just 5% over the next 30 months, indicating an annual return of 2%. This suggests Netflix might be overvalued today.
Notably, Netflix stock has returned 83% in the last year, 176% in the last five years, and 1,726% in the last 10 years.
Value NFLX with TIKR’s Valuation Model today for FREE (Find undervalued stocks fast) >>>
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!