Is Netflix Stock a Good Buy During This Pullback?

Netflix is making big moves in the advertising world, with a 2.5x increase in ad revenue in 2025 compared to the previous year. This growth is a significant part of the company’s overall revenue increase of 17% for the fourth quarter. The rise in ad revenue is catching the eye of investors looking for long-term opportunities, as it could boost revenue per member and improve margins.

Despite a recent drop in stock price, now might be a good time for investors to consider Netflix. The stock is trading at a forward price-to-earnings multiple of 27, which seems appealing considering analysts’ projections of more than 20% earnings growth annually over the next four years. If the stock maintains its current valuation, investors could potentially double their investment in the next four years.

Netflix’s operating margin is also on the rise. The company guided for a margin of 31.5% in 2026, up from its trailing 12-month margin of 29.6%. With Netflix continuing to show promising growth potential, especially in advertising, it’s worth keeping an eye on this streaming giant.