Since reaching all-time highs last summer, Netflix shares have tumbled roughly 30%, wiping out the entirety of the stock’s 2025 gains. Despite this downtrend, HSBC analyst Mohammed Khallouf has labeled the recent pullback a buying opportunity, arguing that takeover fears related to Warner Bros. Discovery are overblown. Khallouf maintains a conviction-buy rating, citing Netflix’s resilient subscription base and accelerating advertising business as catalysts for a rebound ahead of the next quarterly report.

Netflix continues to lead the global streaming market with over 300 million paid memberships across more than 190 countries. While the company no longer reports detailed quarterly subscriber additions, management highlights broad-based growth in Latin America and Asia Pacific, where price adjustments and new mobile-only plans have driven uptake. In Q3 2025, the service signed up an estimated 6.2 million net new members, a figure consistent with levels seen during the same period in 2024, underscoring the brand’s enduring appeal even as competition intensifies.

Over the past five quarters, Netflix’s top line has climbed from $9.825 billion in Q3 2024 to $11.510 billion in Q3 2025, representing year-over-year revenue growth of 17.2% in the latest period. EPS over that span has fluctuated—$5.40, $4.27, $6.61, $7.19, and $5.87—reflecting ongoing investments in content and technology. Crucially, Netflix’s newly launched in-house adtech platform, Netflix Ads Suite, is on track to more than double advertising revenue in 2025, helping to bolster margins as the company phases in tiered subscription pricing and enforces stricter password-sharing policies.