The S&P 500 has experienced significant volatility this year. However, as of April 17, the benchmark index has risen by 4% in 2026. Over the past three years, it has impressively increased by 72%.
Amidst this landscape, one remarkable stock stands out by significantly outperforming the market. Over the past three years, this particular company has seen its stock price skyrocket by an astounding 191%. Additionally, its shares have risen more than 5% in 2026 alone.
Continue reading to discover which company is making waves in the market and to evaluate if it should be part of your investment portfolio.
Image source: The Motley Fool.
How is Netflix Thriving Despite Economic Uncertainties?
It appears that hardly a quarter passes without Netflix (NFLX 9.71%) delivering impressive financial results. This trend continues even as the global economy grapples with increasing uncertainty and challenges.
In the first quarter of 2026, the streaming service stock achieved a remarkable year-over-year revenue growth of 16%, surpassing internal expectations. Netflix is benefiting from its ad-supported tier, with advertising revenue projected to reach $3 billion in 2026, effectively doubling the previous year’s total. Furthermore, management reported an increase in hours streamed, which remains strong despite the distraction of the Winter Olympics.
Today’s Change
(-9.71%) $-10.47
Current Price
$97.32
Vital Data to Know
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%
Recently, Netflix has successfully implemented price increases across the U.S. market. According to the first-quarter shareholder letter for 2026, these changes “have gone well, reflecting the strong value we provide members.” This value proposition is further enhanced by the company’s latest initiatives, which include showcasing more live events, launching video podcasts, and expanding into diverse gaming categories.
The trends in profitability remain highly encouraging, highlighting the effectiveness of its scalable business model. Operating income surged by 18% in the first quarter, reaching $4 billion, which resulted in an impressive operating margin exceeding 32%.
Should You Consider Investing in Netflix Based on Its Current Valuation?
For potential investors, focusing on growth is likely the most crucial factor. Given Netflix’s substantial size, it is unrealistic to expect the company to maintain its historical growth rates indefinitely.
However, management indicates that the business currently represents only 5% of global television viewing time and has reached less than 45% of broadband households worldwide. This observation suggests that there is still significant room for growth, even though it is anticipated that gains will slow down in the future. Notably, Netflix expects to generate $51.2 billion in revenue for 2026, which would reflect a 13.3% increase.
Despite the fact that the streaming service’s stock is currently trading 26% below its peak, I consider its shares to be on the high side of valuation at the moment, with a price-to-earnings ratio of 39. Netflix continues to be a dominant player in the streaming industry, but the increasing competitive landscape and slower growth rates indicate that the next decade may present more challenges compared to the previous ten years.
Sophie Harrington is an accomplished author and financial writer at Oxford Wise Finance, where she explores a wide range of general topics related to personal finance and economic literacy. With a passion for demystifying complex financial concepts, Sophie empowers her readers to make informed decisions about their financial futures. Her engaging writing style blends insightful analysis with practical tips, making finance accessible to everyone. In addition to her contributions to the blog, Sophie frequently speaks at workshops and seminars, helping to foster a greater understanding of financial wellness in her community.
