Key Points

• Netflix is one of the few technology stocks that didn't experience a sell-off during the initial tariff announcements in April.

• Its stock trades at a premium to other companies in streaming and entertainment, but management's long-term vision might justify that.

• Several catalysts could push its shares even higher in the second half of 2025 and beyond.

• 10 stocks we like better than Netflix ›

2025 has more or less been a wash for technology stocks. The Nasdaq 100 index, which tracks the 100 largest non-financial companies on the Nasdaq exchange, is up 3% year to date.

Nevertheless, some technology stocks have proven resilient through the ups and downs of 2025. Shares of streaming and entertainment juggernaut Netflix (NASDAQ: NFLX) are up 37%, and they should have more to climb.

Let's dig into what's driving Netflix's market-beating returns and explore why the stock could soar to new highs.

Why did Netflix stock surge when other tech stocks plummeted earlier this year?

I see two primary reasons behind Netflix stock's gains throughout 2025.

First, Netflix is a rare example of a business that's relatively immune to tariffs. In theory, tariffs can lead to higher prices (inflation) for consumers, causing them to cut back on discretionary spending. However, Netflix offers viewers a number of subscription tiers based on price. In other words, it's unlikely that rising tariffs will lead to higher expenses or a wave of subscriber churn for Netflix.

In addition, earlier this year, management released a detailed plan outlining how the company plans to double the size of its business over the next five years -- with the goal of achieving a trillion-dollar valuation by 2030. This vision got investors excited, hence the pronounced buying activity since April.

Taking a look at Netflix's valuation

The chart below benchmarks Netflix against a peer group of other streaming and entertainment businesses on a price-to-sales (P/S) basis. With a P/S ratio of 13.3, Netflix is the clear outlier in this cohort with the next closest company, TKO Group Holdings, boasting a P/S multiple of less than half that amount.

Even looking at the bottom line, Netflix's price-to-earnings (P/E) multiple of 58 represents a notable premium to the S&P 500's 28.

Is Netflix stock a buy right now?

As of this writing, Netflix stock is trading at an all-time high of roughly $1,222 per share.

I almost always discourage the idea of buying a stock at a record high. Chief among my concerns is that when you buy near a high, you can get caught up in a momentum trade at an inopportune time.