Should I buy Netflix stock in 2025? South Africa Investor Insights

What is Netflix?

How much is the Netflix stock?

The price of Netflix stock is falling this week. As of now, Netflix is trading at $1,184.86, down $23.69 in the past 24 hours (-1.96%) and showing a weekly decline of 0.26%.

With a beta of 1.59, Netflix stock reflects higher-than-average volatility. Given these metrics, Netflix’s share price can experience notable swings, making regular tracking important for South African investors.

Our full analysis of the Netflix stock

After an extensive review of Netflix’s latest quarterly results and a rigorous assessment of its stock performance over the past three years, our proprietary algorithms have synthesized a wide range of financial metrics, technical indicators, market dynamics, and competitive intelligence. The findings suggest that Netflix is at a pivotal juncture—outperforming peers, unlocking substantial new revenue streams, and maintaining a compelling growth trajectory. So, why might Netflix stock once again become a strategic entry point into the global streaming and entertainment technology sector in 2025?

Recent Performance and Market Context

Netflix’s share price has demonstrated robust momentum, closing at $1,184.86 on 29 May 2025. This reflects an impressive +81% gain over the past year and +32.93% year-to-date—far outpacing the broader NASDAQ and key competitors such as Disney+ and Amazon Prime Video. Even following a minor intraday pullback of -1.96%, the stock has moved from a 52-week low of $587.04 to a fresh high of $1,215.91, signalling sustained bullish sentiment.

• The major multi-year streaming agreement with Sesame Street (finalized in May 2025) reinforces Netflix’s family-friendly brand and global appeal.
• Management has guided for advertising revenues to approximately double in 2025, supporting diversification and margin expansion.
• Strategic leadership developments, such as co-founder Reed Hastings joining Anthropic’s AI board, signal ongoing innovation, especially as Netflix pivots into advanced technology integration.

On a macro level, the global technology sector continues to receive robust capital inflows, benefiting from stabilizing US interest rates and accelerating digital adoption across developed and emerging markets—including Africa, where streaming service penetration is rising. This tailwind positions Netflix as a direct beneficiary of secular digital consumption trends.

Technical Analysis

• The 14-day RSI at 71.23 and a stochastics reading of 88.12 indicate near-term overbought conditions. However, this overextension often precedes a continuation in strong trending stocks rather than a significant reversal.
• The MACD remains decisively positive at 43.74, a classic buy signal reflecting persistent upside momentum.
• Moving averages across the 20-day ($1,163.71), 50-day ($1,047.45), 100-day ($998.50), and 200-day ($886.29) periods all support upward bias; the current price remains well above these key support levels.
• $1,060 has emerged as a robust technical floor, reinforced by heavy volume and absence of meaningful resistance above $1,200.

The technical structure suggests that Netflix could be at the start of a new, sustainable bullish phase, with short- and medium-term indicators favoring accumulation on pullbacks rather than aggressive profit-taking.

Fundamental Analysis

• Revenue Growth: Q1 2025 revenue hit $10.54 billion, up 12.5% year-on-year, well ahead of consensus. Full-year guidance targets $43.5–44.5 billion.
• Profitability: Earnings per share rose to $6.61 (+25.2% YoY), and net income reached $2.89 billion. The company continues to pair revenue acceleration with expanding margins.
• Cash Flow: Free cash flow stands at $2.66 billion for the quarter, with a trailing twelve-month figure of $21.78 billion—enabling ongoing investment in proprietary content and technology.

Valuation is elevated relative to legacy media, with a current P/E of 55.86. However, this premium is justified by sector leadership, high growth, and innovation premium. Metrics such as the PEG ratio and sustained operating leverage reinforce an attractive risk/return profile for growth-oriented investors.

• Holds the dominant share in global streaming, with over 300 million subscribers in nearly 190 countries.
• Enjoys recognized brand equity and renewal rates outpacing most digital platforms.
• Invests heavily in artificial intelligence, proprietary adtech, original content, and geographic expansion—all crucial drivers of competitive advantage.

Volume and Liquidity

With average three-month trading volume at 4.95 million shares and a public float of 422.72 million, Netflix’s liquidity profile is exceptionally healthy. This dynamic ensures tight bid/ask spreads and sustained institutional investor participation, fostering price discovery and market depth. High liquidity supports active trading as well as long-term accumulation strategies, underscoring market confidence in the valuation.

Catalysts and Positive Outlook

• Advertising Expansion: Management’s projection to nearly double advertising revenues in 2025, enabled by in-house adtech, amplifies total addressable market and monetization options.
• Content Strategy: The Sesame Street partnership, alongside steady investments in exclusive originals, continually differentiates Netflix from competitors and draws in new demographics.
• Geographic Growth: International expansion—including into high-growth African markets—is accelerating, with a proven model for localized content production and strategic alliances.
• Product Diversification: Forays into live events and the games sector suggest a broader entertainment platform evolution and recurring engagement.
• AI Integration: Reed Hastings’ presence on Anthropic’s board hints at pioneering uses for AI in recommendation engines and operational efficiency.

From a sectoral perspective, regulatory clarity, rising digital advertising spend, and tech-friendly consumption behaviors (notably among Zoomer and Millennial audiences) further reinforce the favorable outlook. Analysts are consistently raising price targets, as evidenced by recent upgrades from Citigroup, MoffettNathanson, and Wedbush.

Investment Strategies

• Short-Term:
• Technical momentum is strong; tactical entries on brief pullbacks near the $1,060–$1,100 range may prove advantageous.
• Recent new highs tend to attract additional institutional flows and algorithmic buying.
• Medium-Term:
• Proximity to major product and advertising milestones offers a runway for fresh positive newsflow.
• Sector rotation trends favour technology and digital consumption stocks as fundamentals outperform cyclicals.
• Long-Term:
• For investors building durable growth portfolios, Netflix’s leadership in global streaming, innovation pipeline, and free cash flow generation make a persuasive argument for core allocation.
• The current structure and momentum suggest that any disciplined accumulation—particularly ahead of new fiscal/earnings cycles—may benefit substantially as catalysts materialize.

Is it the Right Time to Buy Netflix?

In summary, Netflix exhibits exceptional strengths that differentiate it as a top-tier technology and media stock: accelerating revenue and EPS growth, a formidable global brand, impressive structural moat, relentless innovation, and exciting new verticals in advertising and interactive content. While the stock’s valuation is undeniably premium, this reflects the expansive growth opportunity and confidence among institutional holders. Technicals reinforce the bullish case, with strong upward momentum and supportive volume conditions.

The synthesis of financial, technical, and market intelligence supports an optimistic outlook for Netflix, suggesting that current levels—especially in the context of upcoming catalysts and sector momentum—seem to represent an excellent opportunity for investors looking to capitalise on the next evolution in globally scaled digital entertainment. For those seeking exposure to a world-class leader at the heart of the streaming revolution, Netflix’s track record and future prospects strongly justify renewed interest.

As the industry landscape continues to transform, Netflix appears poised not only to defend but to expand its moat—making this an opportune moment to seriously consider the stock as a strategic cornerstone in any technology-focused equity portfolio.

How to buy Netflix stock in South Africa?

Buying Netflix stock online is straightforward and secure when you use a regulated broker in South Africa. Investors can choose between two main methods: spot buying (owning the underlying shares) or trading Contracts for Difference (CFDs), which allow you to speculate on price movements without taking ownership. Both approaches can be accessed via reputable platforms, with user-friendly tools and robust investor protections. To get the most value, it’s important to compare brokers’ fees and services—an in-depth broker comparison is available further down this page.

Spot Buying (Cash Purchase)

A cash purchase means you buy real Netflix shares, becoming a shareholder of Netflix, Inc. You profit if the share price rises and can hold your shares for as long as you wish. For South Africans, brokers typically apply a fixed commission per trade—often around R80 to R150, or about $5 to $10 USD, plus possible currency conversion fees.

Example

Suppose the Netflix share price is $1,184.86 (approx. R22,300 at an exchange rate of R18.82/USD). With a $1,000 investment (about R18,820), minus a $5 brokerage commission, you could buy approximately 0.84 shares (since $1,000 - $5 = $995; $995 ÷ $1,184.86 ≈ 0.84 shares).

If the share price climbs by 10%, your shares would be worth $1,100. Result: That’s a gross gain of $100, or +10% on your investment (excluding currency impact and taxes).

Trading via CFDs

CFD trading allows you to speculate on Netflix’s price—up or down—without owning the underlying shares. CFDs are leveraged products, meaning you can gain greater exposure with a smaller initial outlay, but this also amplifies risk. Fees include the spread (difference between buy/sell price) and overnight financing costs for positions held beyond a day.

Example

With $1,000 (approx. R18,820) and 5x leverage, you open a CFD position giving you $5,000 (approx. R94,100) exposure to Netflix shares.

If the price rises by 8%, your total position increases by 8% × 5 = 40%. Result: That’s a gain of $400 on your $1,000 stake (excluding spreads and overnight fees).

Final Advice

Before investing in Netflix shares, always compare broker fees, trading conditions, and available features. Some platforms offer lower commissions, while others may offer more advanced trading tools or better exchange rates. Your choice depends on your investment objectives—whether you prefer to own shares long-term via spot buying or to speculate actively with CFDs. Use the broker comparison further down this page to find the platform that suits your goals and budget. Investing in global leaders like Netflix is within reach for South African investors—start with the method that matches your strategy.

Our 7 tips for buying Netflix stock

The latest news about Netflix

Netflix has signed a strategic streaming deal with Sesame Street in May 2025, expanding family content globally. This new agreement brings a highly recognizable and internationally trusted children's brand to Netflix’s platform, reinforcing its position in family entertainment and appealing to a critical segment with strong engagement potential, notably in emerging markets, including South Africa where family content and educational programming continue to drive local subscriber retention and brand value. Industry sources confirm this partnership is expected to boost Netflix’s attractiveness in segmented markets and support further audience growth, including in the sub-Saharan Africa region.

Netflix’s advertising revenues are projected to approximately double in 2025, driven by proprietary technology rollout and greater adoption. Management commentary and Q1 2025 results highlight the growing momentum of the ad-supported tier, which has become increasingly relevant in cost-sensitive markets such as South Africa, where affordability and digital advertising trends are reshaping media consumption habits. This surge in ad revenue diversification boosts the company’s recurring income and supports margin expansion, a favorable signal for investors seeking resilience and growth from African subscriber bases.

First-quarter 2025 financial results exceeded analyst expectations with 12.5% revenue growth and a 25.2% EPS increase year-over-year. Netflix delivered revenues of $10.54 billion and earnings per share (EPS) of $6.61, both above consensus, while maintaining free cash flow at $2.66 billion for the quarter. These results reinforce confidence in Netflix's business fundamentals and strategic execution, with international performance contributing significantly, reflecting the sustained growth opportunity across diverse markets including South Africa, where adoption rates and mobile streaming trends offer continued upside.

Netflix maintains robust momentum on the stock market, reaching a new 52-week high and securing multiple analyst target upgrades. Over the past six months, the stock price has surged by 33.6%, and by 81% over the year, now trading at $1,184.86 as of late May. Key analysts from Citigroup, MoffettNathanson, and Wedbush have raised their 12-month price targets, reinforcing institutional optimism. This positive sentiment is underpinned by Netflix’s leadership in content, innovation in digital advertising, and persistent subscriber engagement trends in developing markets, notably including South Africa.

Netflix continues aggressive international expansion, sustaining content investment and innovation in nearly 190 countries, including localized offers in South Africa. The company's ongoing investment in regionally relevant content and strategic partnerships directly impacts its local operations and audience growth across the continent. In South Africa, Netflix has increased its portfolio of locally produced series and films, secured favorable regulatory compliance, and enhanced user experience through localized payment solutions, reinforcing its long-term commitment and strategic positioning in the African streaming market.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.