The S&P 500 has had a volatile year so far. However, the benchmark is up 4% in 2026 (as of April 17). And in the past three years, it has climbed a notable 72%.
But there’s a monster stock that continues to crush the market. Over the past three years, this business has seen its shares soar 191%. And they have risen more than 5% in 2026.
Keep reading to learn what company this is and whether it belongs in your portfolio.
Image source: The Motley Fool.
Despite ongoing economic uncertainty, it’s business as usual for this industry pioneer
It seems not a quarter goes by that Netflix (NFLX 9.71%) doesn’t report strong financial results. This is true even as the global economy deals with greater uncertainty.
For the first three months of 2026, the streaming service stock posted year-over-year revenue growth of 16%, better than internal expectations. Netflix is getting a small lift from its ad-supported tier, as advertising revenue is on track to total $3 billion in 2026, double last year’s total. Management also said that hours streamed increased, even though the Winter Olympics grabbed a lot of attention.
Today’s Change
(-9.71%) $-10.47
Current Price
$97.32
Key Data Points
Market Cap
$411B
Day’s Range
$95.10 – $98.73
52wk Range
$75.01 – $134.12
Volume
5M
Avg Vol
50M
Gross Margin
49.44%
Netflix recently implemented price hikes in the U.S. They “have gone well, reflecting the strong value we provide members,” according to the 2026 first-quarter shareholder letter. This value proposition is bolstered by the company’s latest initiatives. Netflix is showing more live events, has launched video podcasts, and is expanding into new gaming categories.
Profitability trends continue to be extremely encouraging, showcasing its scalable business model. Operating income jumped 18% in the first quarter to $4 billion, resulting in an operating margin of over 32%.
Is Netflix’s current valuation compelling enough to buy shares?
For investors, growth might be the most important variable to focus on. Due to its size, it’s unreasonable to expect Netflix to keep up the historical pace of its growth.
But management says that the business only commands 5% of global TV viewing time and that it has reached less than 45% of worldwide broadband households. There is still room to expand, although the gains will certainly decelerate in the future. It’s telling that Netflix expects to generate $51.2 billion in revenue in 2026, which would translate to a 13.3% increase.
Even though the streamer’s stock trades 26% below its peak, I view shares as being on the overvalued side of the equation right now, with a price-to-earnings ratio of 39. Netflix is a dominant force in the streaming landscape, but competitive intensity and slower growth mean the next decade will be more challenging than the last 10 years.
