Netflix: The Unstoppable Streaming Giant Defying the 2025 Bear Market

The Nasdaq-100 has been pummeled by the twin forces of a bear market and escalating tariffs, but one stock is standing tall: Netflix (NASDAQ: NFLX). While the broader index has shed 23% from its all-time high, Netflix’s shares have only dipped 8.6% over the same period—a remarkable display of resilience. Here’s why investors should consider putting $1,000 into this streaming titan today.

Why Netflix Is Immune to the Tariff Storm

Netflix’s first line of defense against trade tensions is its digital business model. Unlike companies reliant on physical goods, its revenue streams—subscription fees and advertising—are untouched by tariffs. As President Trump’s trade policies roiled industries like automotive and tech hardware, Netflix’s global subscriber base kept churning.

This tariff immunity isn’t the only advantage. Netflix’s Q1 2025 results revealed $10.5 billion in revenue, a 12.5% year-over-year jump that beat its own 11% growth forecast. The secret? A dual-pronged strategy: expanding its ad-supported tier (now $7.99/month in the U.S.) and dominating live events.

The Live Content Revolution

Netflix’s pivot to live programming is a game-changer. Exclusive broadcasts like the Christmas Day NFL games and historic boxing matches—such as the Tyson vs. Paul fight—have drawn record audiences. For instance, the Taylor vs. Serrano women’s boxing bout drew 28 million viewers, a milestone for the platform. These events not only boost engagement but also create prime ad inventory.

Live content’s extended viewing time (average 3 hours vs. 45 minutes for on-demand shows) means more ad impressions. Netflix’s new Ads Suite platform, which lets brands target viewers across its library and live events, could supercharge this revenue stream. Management expects ad revenue to double again in 2025, building on a 100% jump in 2024.

The $650 Billion Opportunity

Netflix’s addressable market is staggering: $650 billion across streaming, advertising, and gaming. Yet the company has captured just 6% of this. Analysts project EPS to hit $25.31 in 2025 and $30.15 in 2026, potentially justifying its P/E ratio of 49.1—a premium over the Nasdaq-100’s 27.2.

Critics cite risks: a $18 billion annual content budget, competition from Disney+ and Amazon (AMZN), and the high valuation. But Netflix’s scale—238 million subscribers—and first-mover advantage in live streaming give it a moat. Its ability to outbid rivals for exclusive events (e.g., the Taylor vs. Serrano rematch in July 2025) underscores its staying power.

Analysts Are Bullish, but the Crowd Is Skeptical

Post-Q1 earnings, Netflix’s stock rose 1.5%, with analysts like Goldman Sachs lifting price targets to $80 (from $70). Yet it’s conspicuously absent from The Motley Fool’s top 10 stocks list—a contrarian signal? Maybe. But with global streaming penetration still low (only 30% of households subscribe to Netflix), the growth runway remains long.

Conclusion: A Bear Market Winner

Netflix isn’t just surviving—it’s thriving. Its tariff-proof model, $10.5 billion revenue engine, and $650 billion addressable market make it a rare bright spot in a gloomy Nasdaq. Even with risks like content costs, its dominance in live events and ad tech positions it to outperform.

For $1,000 today, you’re buying into a company with:
- A 12.5% revenue growth rate
- 30 million+ live event viewers
- A 49.1 P/E ratio supported by 20% EPS growth projections

Is the valuation high? Yes. But in a bear market, investors pay for resilience—and Netflix has it in spades.

The verdict? Netflix is a buy for investors with a 3–5 year horizon, offering a rare blend of defensive qualities and growth potential in today’s turbulent markets.