Should You Invest $100 in Netflix Right Now?
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The world's best streaming stock is up 701% in 10 years.Netflix (NFLX 1.51%) deserves credit for spearheading the world's shift away from cable TV and toward streaming. It's the leader in that market, with a global presence, massive user base, pricing power, and sizable profits. Should you invest $100 in this dominant streaming stock, which trades 29% below its peak (as of Dec. 12), right now? Image source: Netflix. Netflix is an expensive stock This stock has performed exceptionally well in the past, soaring 701% over the trailing-10-year period. This is despite the fact that shares have dropped considerably from their all-time high. Netflix missed Wall Street estimates when it reported Q3 financials. And the market looks to be concerned about the company's proposed takeover of Warner Bros. Discovery. Even after the dip, the stock is expensive. It trades at a price-to-earnings ratio of 40. This is the main reason investors shouldn't add Netflix to their portfolios right now. ExpandNASDAQ: NFLXNetflixToday's Change(-1.51%) $-1.44Current Price$93.75Key Data PointsMarket Cap$428BDay's Range$93.53 - $96.3052wk Range$82.11 - $134.12Volume7.9KAvg Vol43MGross Margin48.02% Keep the stock on your watch list for now This doesn't mean investors should completely forget about Netflix. This is a high-quality company. It has a cost advantage, which helps it collect lots of net income and free cash flow while it also spends aggressively on content. And there is still meaningful growth potential, particularly in international markets. Advertisement It's best to watch the stock and wait for a better entry point. About 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.TMFNeilPatelRead NextDec 14, 2025 •By Anders BylundCould Buying Netflix Today Set You Up for Life?Dec 14, 2025 •By Neil PatelCould Netflix Stock Help You Retire a Millionaire?Dec 14, 2025 •By Danny Vena, CPAMeet the Newest Stock-Split Stock in the S&P 500. It's Soared 80,730% Since Its IPO, and It's a Buy Heading into 2026, According to Wall Street.Dec 13, 2025 •By Lawrence NgaNetflix in 2025: The 3 Big Takeaways Investors Should Focus OnDec 13, 2025 •By Justin PopeNetflix Is Reinventing Its Business Again. Could the Stock Be Heading Higher?Dec 13, 2025 •By Robert IzquierdoThe Streaming Wars Just Entered a New Phase. Here's What Paramount vs. Netflix Means for Investors