Netflix (NASDAQ:NFLX) is no stranger (things) to attracting gobs of viewers for content it both creates and licenses. The streaming pioneer has grown by leaps and bounds over the years, most recently reflected in its Q3 2025 year-over-year revenue growth of 17.2%.
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Today, the market’s focus will turn to Netflix; not because of its latest bingeable show, but rather due to its 10-for-1 stock split. NFLX’s share price is floating north of $1,100 after a bullish run over the past few years, making it harder for smaller investors to buy into the company’s growth story.
While the value of the company won’t be directly impacted by the split, it’s no stretch to imagine that more shares will be changing hands following the lowered share price. With all the excitement in the air, top investor Daniel Sparks also thinks the time is right to examine NFLX more closely.
“Clearly, the business is firing on all cylinders. But are shares priced attractively?” wonders the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
Sparks is struck by Netflix’s “undeniable momentum,” which he explains is due to a winning recipe of price hikes, membership growth, and increasing advertising revenue. The investor is particularly intrigued by the advertising segment, noting that this nascent and relatively small portion of Netflix’s business model is scaling quickly.
“That matters because ads can widen Netflix’s growth runway without relying solely on new subscribers and price hikes. And because advertising economics can be attractive, the fast-growing business will likely bolster profits meaningfully over time,” adds Sparks.
On that note, the investor is also pleased with the company’s improving operating margin, which is expected to jump up from 27% in 2024 to 29% for the current year.
Regarding the all-important valuation, Sparks deems NFLX’s Forward Price-to-Earnings ratio of 35x reasonable (“and even attractive”), especially given Netflix’s market leadership and growth.
“So, is Netflix stock a buy – even after a stock split? I think so,” sums up Sparks, who nonetheless urges investors to be mindful of the intense competition in the streaming space. (To watch Daniel Sparks’ track record, click here)
Netflix is a fairly popular pick on Wall Street as well. With 26 Buys, 7 Holds, and 1 Sell, NFLX enjoys a Moderate Buy consensus rating. Its 12-month average price target of $1,398.59 (before the split is factored in) implies growth of more than 25%. (See NFLX stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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