2 Reasons to Hit Pause on Netflix Stock Now

Netflix (NFLX) stock performed terrifically well in 2024. Its solid content, subscriber growth, and push into advertising boosted its top- and bottom-line growth, supporting its share price and strengthening its competitive positioning in the streaming space.

So far in 2025, the company’s operating momentum has remained solid. Viewers continue to engage with its expanding catalog, and the ad-supported tier is gaining traction. But despite its solid fundamentals, the stock hasn’t kept pace with the broader market’s climb. NFXL shares are up 8% this year, noticeably behind the S&P 500 Index’s ($SPX) nearly 16.7% advance. That lag suggests that while Netflix has maintained its growth, the rate of acceleration is not strong enough to boost its share price.