It's been a rough year for many stocks as the Trump administration's unpredictable tariffs, the escalating trade war, sticky inflation, and other headwinds rattled the markets. However, one stock that bucked that downturn was Netflix (NFLX 4.48%), which rallied nearly 90% over the past 12 months as it dazzled the bulls with its robust growth rates. Let's see why Netflix kept expanding in this challenging environment -- and whether its stock is still worth buying today.

What happened to Netflix over the past year?

When Netflix's revenue rose only 6% in 2022, the bears claimed the streaming leader's high-growth days were over. That year, its growth was affected by the Ukrainian war, competition from Disney and other rivals, and password sharing.

Image source: Getty Images.

Yet Netflix's revenue rose 7% in 2023 and 16% in 2024 as it raised its prices, rolled out new paid password sharing plans, launched a cheaper ad-supported tier, and locked in more subscribers with popular shows including Griselda, 3 Body Problem, Bridgerton, Fool Me Once, Squid Game 2, and La Palma. That acceleration indicated its business was still firing on all cylinders.

Over the past year. Netflix continuously gained new subscribers (but stopped disclosing that metric in 2025), its revenue consistently grew by the double digits, and its operating margin expanded. Its earnings per share (EPS) also surged by the double and triple digits.

Data source: Netflix. YOY = Year-over-year. *Stopped disclosing subscribers in 2025.

By comparison, Disney served only 125 million Disney+ subscribers, and 178 million combined Disney+ and Hulu subscribers, at the end of the first quarter of 2025. Therefore, Netflix's ability to keep expanding its market-leading audience while growing its margins and earnings suggests that economies of scale are kicking in. By comparison, Disney's streaming business only turned profitable for the first time in the third quarter of 2024.

What does Netflix expect to happen in 2025?

For 2025, Netflix expects the return of three of its most popular shows -- Squid Game, Wednesday, and Stranger Things -- to fuel its growth. It expects hit new shows such as Adolescence and a slate of new original movies to generate additional tailwinds.

For the first quarter, Netflix expects its revenue to rise 15.4% year over year, its operating margin to expand 610 basis points to 33.3%, and its EPS to increase 44.1% to $7.03. Tariffs, inflation, and other macro headwinds shouldn't directly affect the market's demand for Netflix's streaming services, but it could still be indirectly affected by higher production costs, weaker ad spending in a challenging environment, and wild currency fluctuations against the U.S. dollar.

For the full year, analysts expect Netflix's revenue and EPS to grow 14% and 29%, respectively. At $1,040 a share, it trades at 41 times this year's earnings. It isn't a bargain -- but it also doesn't seem overvalued relative to its long-term growth potential.

Is Netflix's stock still worth buying?

Netflix faces plenty of competition, but it's proved time and time again that it can maintain its lead with its algorithm-driven program recommendations and addictive original content. That's why it's arguably the only brand that has become synonymous with premium streaming videos. Netflix's stock might seem a bit too hot to handle as it hovers near its all-time highs, but I think it's still safe to accumulate as the broader market swoons. Its core business is largely insulated from the tariff chaos, and it should keep growing over the next decade as streaming media finishes off linear TV services.