Meet the Monster Stock That Continues to Crush the Market

By Neil Patel – Apr 19, 2026 at 1:30PM ESTKey PointsShares of this leader in its niche tanked immediately after reporting its first-quarter results, but the stock has still outpaced the S&P 500 this year. Advertising revenue is expected to double to $3 billion in 2026, providing a lift to the overall top line. The current valuation looks expensive relative to what will likely be slower growth in the future. The S&P 500 has had a volatile year so far. However, the benchmark is up 4% in 2026 (as of April 17). And in the past three years, it has climbed a notable 72%. But there's a monster stock that continues to crush the market. Over the past three years, this business has seen its shares soar 191%. And they have risen more than 5% in 2026. Keep reading to learn what company this is and whether it belongs in your portfolio. Image source: The Motley Fool. Despite ongoing economic uncertainty, it's business as usual for this industry pioneer It seems not a quarter goes by that Netflix (NFLX 9.71%) doesn't report strong financial results. This is true even as the global economy deals with greater uncertainty. For the first three months of 2026, the streaming service stock posted year-over-year revenue growth of 16%, better than internal expectations. Netflix is getting a small lift from its ad-supported tier, as advertising revenue is on track to total $3 billion in 2026, double last year's total. Management also said that hours streamed increased, even though the Winter Olympics grabbed a lot of attention. ExpandNASDAQ: NFLXNetflixToday's Change(-9.71%) $-10.47Current Price$97.32Key Data PointsMarket Cap$411BDay's Range$95.10 - $98.7352wk Range$75.01 - $134.12Volume5MAvg Vol50MGross Margin49.44% Netflix recently implemented price hikes in the U.S. They "have gone well, reflecting the strong value we provide members," according to the 2026 first-quarter shareholder letter. This value proposition is bolstered by the company's latest initiatives. Netflix is showing more live events, has launched video podcasts, and is expanding into new gaming categories. Profitability trends continue to be extremely encouraging, showcasing its scalable business model. Operating income jumped 18% in the first quarter to $4 billion, resulting in an operating margin of over 32%. Is Netflix's current valuation compelling enough to buy shares? For investors, growth might be the most important variable to focus on. Due to its size, it's unreasonable to expect Netflix to keep up the historical pace of its growth. But management says that the business only commands 5% of global TV viewing time and that it has reached less than 45% of worldwide broadband households. There is still room to expand, although the gains will certainly decelerate in the future. It's telling that Netflix expects to generate $51.2 billion in revenue in 2026, which would translate to a 13.3% increase. Even though the streamer's stock trades 26% below its peak, I view shares as being on the overvalued side of the equation right now, with a price-to-earnings ratio of 39. Netflix is a dominant force in the streaming landscape, but competitive intensity and slower growth mean the next decade will be more challenging than the last 10 years. Read NextApr 19, 2026 •By Catie HoganShould You Buy the Netflix Dip?Apr 19, 2026 •By John BallardBuy These 3 Growth Stocks Now, Ignore the Noise, and Thank Yourself LaterApr 17, 2026 •By Josh Kohn-LindquistStock Market Today, April 17: Netflix Drops As Reed Hastings Departs From Board and Company Offers Soft GuidanceApr 17, 2026 •By Howard SmithNetflix Stock Tanked Today.

Should You Buy the Dip?Apr 17, 2026 •By Anders BylundWhy Netflix Stock Fell 11.8% Friday MorningApr 17, 2026 •By The Motley Fool TeamStock Market Today (LIVE): Is Netflix (-10% Today) Finally Cheap?; Stocks Buoyed by Open StraitAbout the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedNetflixNASDAQ: NFLX$97.31(-9.72%)-$10.48*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.