The Stock Market Is Historically Pricey: Here's Why You Can Trust Netflix to Deliver

Motley Fool
2025.09.27 16:22
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The stock market is currently experiencing high valuations, with the S&P 500's price-to-earnings ratio at 28, raising concerns about a potential market bubble. However, Netflix is highlighted as a resilient investment, having recovered from subscriber declines in 2022. The company benefits from global diversification, a strong product offering, and an ad-supported subscription model that is expected to boost revenue. Despite its high price-to-earnings ratio of 55, Netflix's growth potential through price increases and international expansion positions it well for continued success, even amid market volatility.