Is Netflix (NFLX) the Best Stock to Buy for High Returns in 2025?

As we step into 2025, investors are eager to find the next big thing in the stock market. One name that keeps popping up is Netflix (NFLX), the streaming giant that has been on a tear in recent years. But is Netflix the best stock to buy for high returns in 2025? Let's dive into the data and find out.



First, let's take a look at Netflix's stock price performance. In 2024, Netflix shares climbed to an all-time high after the company reported 19 million new subscribers in the fourth quarter and lifted its 2025 outlook. The streamer also raised its subscription prices, which analysts say is likely to drive revenue growth with "little pushback." This strong performance has led several firms to raise their price targets on the stock, with JPMorgan analysts setting a target of $1,150.

Now, let's compare Netflix's performance to its competitors. In 2024, Netflix added a record 18.9 million subscribers, surpassing Wall Street's expectations. In contrast, Disney+ reported 16.7 million subscribers in its first year, while HBO Max had 73.8 million subscribers as of January 2025. When it comes to revenue, Netflix generated $10.2 billion in the fourth quarter of 2024, compared to Disney's $20.1 billion in total revenue for the same quarter. However, it's important to note that Disney has a much larger business, including theme parks and media networks.

One of the reasons Netflix has been so successful is its vast content library. As of 2025, Netflix has over 18,000 titles in its library, compared to Disney+'s 7,000 titles and HBO Max's 10,000 titles. This extensive library allows Netflix to cater to a wide range of tastes and preferences, making it a one-stop shop for entertainment.

Another factor to consider is Netflix's ad-supported tier. In 2024, the ad-supported tier drove 55% of all Netflix fourth-quarter sign-ups in markets where the plan was available. This shift is expected to contribute to revenue growth in 2025, as Wedbush analysts noted, "The higher prices come as Netflix’s ad-supported tier drove 55% of all Netflix fourth-quarter sign-ups." This strategy positions Netflix for future expansion by attracting price-sensitive subscribers and increasing average revenue per user (ARPU).

When it comes to revenue growth, Netflix has been outpacing its competitors. In 2024, Netflix's revenue surged 16% year-over-year to $10.2 billion, while Disney's revenue grew by 10% to $20.1 billion in the same quarter. HBO Max's revenue grew by 13% to $5.1 billion in the fourth quarter of 2024. This strong revenue growth is a testament to Netflix's ability to monetize its content effectively and attract a large subscriber base.

In conclusion, Netflix's strong stock price performance, extensive content library, ad-supported tier, and robust revenue growth make it an attractive investment for 2025. While there are always risks involved in investing, Netflix's track record of success and its dominant position in the streaming market make it a compelling choice for investors seeking high returns. However, it's essential to do your own research and consider your risk tolerance before making any investment decisions.