I never possessed Netflix (NASDAQ: NFLX) shares either with self -investing personal pension (SIPP) or shares and ISA sharing. With the share price of 1010 % over the past decade, this was an expensive error.

However, I still see five strong reasons to consider buying them now. Here they are.

It is still growing

The only thing that might put investors is the size of Netflix. She had more than 300 million paid memberships at the end of 2024. How many chapters remain in this epic growth story?

It is a legitimate question. But we have just seen in the second quarter (July 17) that the broadcast giant continues to progress. Revenue increased by 16 % year on an annual basis to $ 11.08 billion, driven by more members, high subscription prices (more below) and increased advertising revenues (Ditto).

The revenues in the Asia Pacific region jumped by 24 %. The operating margin improved by 7 % to 34 %, while the free cash flow increased by 87 % to $ 2.3 billion.

In the future, the administration sees the revenues of the entire year $ 44.8 billion-45.2 billion dollars (higher than it was previously thought). It would represent a strong growth of about 15 % to 16 %.

Content

Another reason I am optimistic is that Netflix has something for everyone. New animation movie KPOP hunters are devil It is a global feeling, while Teenager Even a discussion in Parliament in the UK earlier this year.

In Q2, the third season of Squid game He took a look at the eye 122 meters, while Outside of the legislation of national legislation From Germany (89 meters of views) and the film in Spanish The bad effect (46 m) Both went well.

It should be noted that the above three examples are the content of a non -English language, which now constitutes more than a third of the Netflix offer.

In the second half, season two Wednesday and Strange things The final will be released. Safe to say, Netflix is still the tyrant content.

Pricing

On the weekend, I paid 24.99 pounds to see a USyk Vs Dubois 2 on DAZN. But in September, I will be able to enjoy the Caneo Vs Crawford Boxing Mega-Fight Live as part of my Netflix subscription. This is a great value, in my eyes.

Netflix raised subscription prices in January, and this did not result in a collective cancellation. Thus, I think it has a lot of the remaining pricing power of the fold.

I mean, the cheapest plan, criteria with ads, only 5.99 pounds per month today. This is less than fish and potatoes!

New revenues

When talking about ads, the company has completed the ADS Netflix collection, which is the advertising device technology platform. The administration expects the revenue of the dual global advertising this year almost, before reaching $ 9 billion by 2030.

The main danger that I see here is the evaluation. After a rise of 37 % years so far, the arrow is traded with 48 times futures. If the growth is unexpectedly slowing, for example, because the economic contraction affects the global advertising market, Netflix shares can decline sharply.

The company also faces increasing competition for the younger fans, especially from Tiktok and YouTube.

However, the long -term targeted advertisement is a strong new revenue driver, especially since Netflix moves to live sports.

artificial intelligence

Finally, Netflix has recently used the Trucitomic intelligence to produce visual effects for the first time in one of the original series (Eternau). Co-CEO TED SARANDOS commented:Artificial intelligence represents an incredible opportunity to help creators make movies and a better series, not just cheaper“

As artificial intelligence improves over time, I expect to reduce production costs, increase creative productivity, and finish margins of profit.