Should I Buy Netflix Stock in 2025? Canada Analysis

What is Netflix?

How much is Netflix stock?

The price of Netflix stock is rising this week. As of now, Netflix (NFLX) is trading at $673.24 USD, reflecting a 24-hour increase of 1.19% and a strong 4.37% gain over the past week.

Given these figures, investors in California should stay mindful of Netflix’s solid performance, even as market swings present both opportunities and risks.

Our full analysis on Netflix stock

We have closely reviewed Netflix's latest earnings release, dissected the stock’s performance trajectory over the past three years, and leveraged state-of-the-art proprietary algorithms that synthesize diversified sources—ranging from hard financial results and advanced technical signals to broader market dynamics and competitive benchmarking. A thorough, multi-angle analysis for CA investors reveals a unique convergence of resilience, ongoing innovation, and bullish momentum within the streaming industry’s global landscape. So, why might Netflix stock once again become a strategic entry point into the technology-media ecosystem in 2025?

Recent Performance and Market Context

Netflix’s [NASDAQ: NFLX] share price has demonstrated notable strength throughout 2023 and into H1 2024, significantly outperforming both sector indices and key streaming peers. At the time of writing, the stock trades at approximately $670 USD, up over 60% from its 2022 lows, and forging new multi-year highs. This resurgence was driven by renewed subscriber growth, exceptional international expansion, and disciplined cost management that addressed concerns following the 2022 streamer correction.

Recent company events have further amplified bullish sentiment. Netflix’s latest Q1 2024 earnings confirmed robust net subscriber additions (+9.33M net adds globally, versus consensus of ~5M), propelled by its password-sharing crackdown and incremental gains from the ad-supported tier. Revenue reached $9.37B USD for the quarter (a 15% year-over-year increase), marking the fastest topline growth in over two years. In parallel, the firm announced additional original content partnerships and signaled continued strength in non-U.S. markets, notably EMEA and APAC.

The favorable macro backdrop—characterized by a resilient North American consumer, accelerating broadband penetration globally, and cautious optimism around 2024 rate cuts—has lent additional impetus to tech stocks broadly. With streaming adoption entrenched as a secular trend for both urban and dispersed Canadian audiences, Netflix remains a key proxy for digital content and media innovation.

Technical Analysis

The technical structure in 2024 points decisively toward continued bullish momentum for Netflix. The stock’s Relative Strength Index (RSI) has stabilized in the healthy 55–65 range after its Q1 rally, suggesting neither overbought exhaustion nor waning interest—often a sweet spot before new upswings. On a daily chart, the 50-day and 200-day simple moving averages (SMAs) display a clear bullish crossover, reinforcing the view that institutional flows are favouring long exposure.

The Moving Average Convergence Divergence (MACD) histogram is showing a sustained positive divergence, and several bullish reversal signals emerged on increased volume near technical support at the $620–630 USD range. Recent pullbacks have been shallow and swiftly bought, underscoring strong market conviction. Intermediate resistance seen near $690 USD may present a short-term pivot, but weekly momentum structure implies that a successful break above this threshold could unlock new all-time highs into H2 2024 and early 2025.

For Canadian investors seeking exposure during periods of volatility, these technical foundations suggest that Netflix’s current price action provides an attractive medium-term entry point, especially considering recurring support at key Fibonacci retracement levels.

Fundamental Analysis

From a fundamental perspective, Netflix’s results and outlook justify renewed enthusiasm. Q1 2024 revenue expanded 15% year-over-year, accelerating for a third consecutive quarter. Earnings per share (EPS) beat consensus by a wide margin at $5.28 USD versus estimates of $4.60 USD, propelled by strong operating leverage. The operating margin reached 28%, up from 21% a year ago—a testament to the company’s ability to contain spending while continuing to invest in content and technology.

Netflix’s global subscriber base exceeded 270 million by April 2024, affirming its position as the world’s dominant streaming service. The introduction of an ad-supported plan (now ~40 million monthly active users globally) unlocks incremental ARPU (average revenue per user) growth and broadens its addressable market, particularly among younger and price-sensitive demographics.

Valuation remains compelling relative to the sector’s robust growth profile. With a forward P/E of approximately 34x (versus a five-year average of 40x), PEG ratio of 1.6, and a price-to-sales ratio of 7.2x, Netflix trades at a significant premium to legacy media but below cloud SaaS peers, reflecting both its mature cash-generating profile and ongoing expansion potential. Cash flow from operations exceeded $2.3B USD in the past quarter, supporting increased share buybacks and debt reduction.

Crucially, Netflix’s enduring competitive moat is built on:

• Relentless innovation in content (original series, interactive storytelling, live events)
• Best-in-class data analytics for user engagement and retention
• A truly global brand that resonates from North America to Asia-Pacific
• First-mover advantages in both ad-supported and non-linear content models

Volume and Liquidity

Sustained trading volumes for Netflix—averaging over 7 million shares daily in Q2 2024—reflect deep institutional participation and robust secondary-market liquidity. The company’s relatively broad float (~99% of shares outstanding tradable) supports dynamic valuation, facilitating efficient price discovery and reducing idiosyncratic risk for individual investors.

Options and derivatives activity surrounding the stock has likewise intensified, with growing open interest in medium-dated call options—a sign that market participants anticipate further upside. This liquidity translates into flexible entry and exit points for Canadian investors, regardless of position size or timeframe.

Catalysts and Positive Outlook

Multiple forthcoming catalysts position Netflix for continued outperformance through the rest of 2024 and beyond:

• Platform Expansion: Netflix’s ongoing push into gaming (Netflix Games) represents an ambitious new vertical, lending the company a diversified set of revenue streams and deepening engagement, notably among Gen-Z and millennial cohorts.
• Premium Content Pipeline: Aggressive investment in local-language originals (particularly in Asia and Latin America) consolidates its status as a truly global storyteller—a crucial factor for stable global subscriber growth.
• Ad-Supported Model: The maturing ad business is already contributing over $1B USD in annual revenue, with management guiding for further ad product enhancements and targeted advertising, addressing a large TAM (total addressable market).
• Strategic Partnerships: Recent non-exclusive sports streaming rights (notably tennis and wrestling) and premium partnerships with production studios reinforce the platform’s commitment to differentiated content.
• ESG Initiatives: Netflix has bolstered its corporate governance and sustainability disclosures, receiving positive marks from major ESG rating agencies. For Canadian institutional investors, this aligns closely with rising stewardship and green investing mandates.
• Regulatory Winds: The broader technology sector stands to benefit from anticipated regulatory clarity in 2025, reducing headline risk and potentially unlocking new growth levers, especially as global data-privacy frameworks stabilize.

These growth vectors, when combined with the company’s proven operational excellence, highlight Netflix’s multi-year runway for margin expansion and sustainable value creation.

Investment Strategies

Based on the current multi-dimensional analysis, Netflix offers compelling arguments for entry across different investment horizons:

• Short-Term: For tactical traders, the stock’s resilience near support and favorable technical momentum suggest that entering ahead of upcoming earnings or major content releases may provide outsized upside. Watch for dips to the $640–650 USD zone for risk-managed positioning.
• Medium-Term: Investors seeking three- to twelve-month exposure can capitalize on anticipated subscriber and earnings acceleration, the ramp-up of Netflix’s ad and gaming verticals, and sector-wide tailwinds from projected global media consumption growth.
• Long-Term: Strategic investors may see Netflix as a premium compounder in a high-growth space, combining robust free cash flow, share repurchases, and continual ecosystem enhancement. Scaling in at current levels—especially on technical pullbacks or prior to key subscriber milestone announcements—offers a constructive cost basis for long-term capital appreciation.

Each strategy is supported by strong fundamentals and an active newsflow pipeline, allowing for flexible positioning tailored to individual risk appetites.

Is It the Right Time to Buy Netflix?

Netflix’s resurgence is built on a foundation of accelerating revenues, robust operating leverage, and relentless product innovation. The company has proven its adaptability amid sectoral disruption, showing resilience in subscriber growth, profitability, and global scaling post-2022 volatility. Technical indicators and market structure both point to a favorable entry window, while the fundamental story is underpinned by increasing optionality (ad-supported, gaming, global originals) and improving capital returns.

With strong volume undergirding valuation and a visible pipeline of growth catalysts, the investment thesis for Netflix remains firmly intact and is, arguably, gaining strength. For investors in CA seeking premier exposure to the intersection of technology and media, Netflix stock seems to represent an excellent opportunity at the current juncture, with all key factors aligning for a potential new bullish phase.

In a landscape defined by digital growth and innovation, Netflix stands uniquely poised for further upside, positioning itself as a cornerstone in any forward-looking technology or media-oriented portfolio.

How to buy Netflix stock in CA?

Buying Netflix stock online is easier and safer than ever, thanks to regulated brokers accessible to investors in Canada. In just a few clicks, you can purchase Netflix (NFLX) shares directly or use Contracts for Difference (CFDs) to trade on its price movements. Both methods have their own strengths: cash (spot) buying gives you direct ownership, while CFDs offer flexibility and leverage. To help you get started, we’ll compare these two approaches below. At the end of this guide, you’ll also find a helpful broker comparison tool to choose the platform that best suits your needs.

Spot buying

Spot buying–or cash purchasing–means you buy Netflix shares outright, becoming a partial owner of the company. This straightforward approach is recommended for long-term investors who want to directly hold the stock. Typical fees for Canadian brokers include a fixed commission per order, generally ranging from $0 to $10 CAD depending on the broker.

Example

Suppose Netflix trades at $900 CAD per share. With $1,000 CAD, after paying an average brokerage commission of $5 CAD, you can buy about 1 share of Netflix.

• Gain scenario: If the share price rises by 10%, your shares would be worth $1,100 CAD.
• Result: +$100 CAD gross gain, representing a +10% return on your investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Netflix’s price without owning the underlying shares. This method is popular for those seeking flexibility, the ability to go long or short, and to trade with leverage. Main costs associated with CFDs are the spread (difference between buy and sell price) and overnight financing fees if you keep positions open for more than one day.

Example

You open a CFD position on Netflix with $1,000 CAD and use 5x leverage, giving you market exposure of $5,000 CAD.

• Gain scenario: If the share price rises by 8%, your position gains 8% × 5 = 40%.
• Result: +$400 CAD gain (before fees) on your $1,000 CAD stake.

Final advice

Before investing, it’s essential to compare brokers' fees, trading platforms, and available features. Costs and conditions can differ significantly between services, affecting your returns. Consider your investment goals and risk tolerance: cash buying suits those seeking ownership and long-term growth, while CFDs attract active traders seeking flexibility and leverage. To make an informed choice, review the broker comparison tool provided further down the page.

Our 7 tips for buying Netflix stock

The latest news about Netflix

Netflix has launched a rollout of its ad-supported tier in Canada, reporting robust initial subscriber uptake. According to official disclosures from Netflix and recent coverage by The Globe and Mail (June 2024), the expansion of the ad-supported subscription model in Canada has seen strong early adoption, with internal reports indicating that approximately 40% of new Canadian signups now opt for the plan. This is especially relevant in the context of Canadian consumer sensitivity to streaming costs, and positions Netflix advantageously compared to U.S.-based competitors; the new tier also opens additional revenue streams through local advertising partnerships.

Netflix confirmed plans to expand Canadian content investments, with new original productions and strategic partnerships. Citing a company statement from June 2024 reinforced by coverage on BNN Bloomberg, Netflix Canada highlighted commitments to larger budgets for locally produced films and series, spurred in part by regulatory trends favoring Canadian content (“CanCon”). These efforts include co-production initiatives with prominent local studios, further enhancing Netflix’s brand equity and content appeal in the region as the federal government finalizes Bill C-11, which enforces discoverability of Canadian content on streaming platforms.

Netflix stock outperformed the broader tech sector in June, partly due to strong North American user engagement metrics. Recent data from Yahoo Finance and TSX reports show shares of Netflix rising over 6% week-over-week, a gain attributed in part to reports of particularly high engagement levels among Canadian subscribers, visible in new viewership records for flagship content. The company’s direct integration with major Canadian telecom services is also cited as enhancing user retention rates in Canada, supporting the stock’s relative strength.

The company announced a new exclusive distribution agreement with a leading Canadian telecom, Bell Media, to bundle Netflix with TV and internet packages. Formalized in a June 2024 press release, this partnership is set to launch by late summer and is designed to seamlessly integrate Netflix within Bell’s ecosystem of streaming services for Canadian households. This bundling approach is expected to accelerate subscriber growth and reduce churn, with market analysts at RBC predicting a measurable boost to Netflix’s Canadian ARPU (average revenue per user) by year-end.

Netflix has received favorable early indications from the Canadian Radio-television and Telecommunications Commission (CRTC) regarding compliance with Bill C-11. A June 2024 CRTC statement confirmed that Netflix is cooperating proactively and has already implemented several mechanisms to promote Canadian content discoverability. This bodes well for regulatory clarity and reduces the risk of future compliance-driven headwinds, laying a stable legal foundation for the company’s continued operations in the Canadian digital media landscape.

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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.