Analyst Highlights Netflix's (NFLX) 'Biggest Advantage' - Can The Stock Keep Rising Amid Competition?

Netflix Inc (NASDAQ:NFLX) is one of the 10 Buzzing Stocks to Watch as AI Trade Makes a Comeback.

MNTN CEO Mark Douglas recently talked about Netflix during a program on CNBC. He believes Netflix has an edge over its competitors.

“I think the biggest advantage Netflix Inc (NASDAQ:NFLX) always has, it’s the first place most people think to go when they turn on their TV. And—and it’s just an incredible advantage. We’ve talked about this before. It allows them to turn like a female fight, which typically in the past hasn’t had great ratings, into the one of highest rated fights of all time, another form of their live content. So, as long as you have consumers coming to you first, you want a mixture of these top tier shows, but you also want new content that isn’t that expensive to produce, like live programming, like dating shows, like, you know, soccer, football in Europe and things like that that you can produce and put out there and attract those viewers worldwide.”

Netflix shares were in the red early Friday despite reporting a strong Q2. Revenue rose nearly 16% year over year and beat estimates, while operating margin climbed to 34.1% from 27.2%. The company raised its full-year revenue forecast to $44.8–$45.2 billion from $43.5 billion to $44.5 billion. The stock is up 44% so far this year. Netflix's P/E ratio of 60 is significantly higher than Disney's and Amazon's. Amid rising competition and high valuation, the stock could struggle to keep momentum in the absence of new catalysts. Photo by Souvik Banerjee on Unsplash

ClearBridge Large Cap Growth Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its second quarter 2025 investor letter:

“Netflix, Inc. (NASDAQ:NFLX), one of the Strategy’s largest active weights, saw its shares rise due to overall continued robust execution with double-digit revenue growth, driven by a balance of subscriber growth and price, and continued margin expansion. We took some profits in the position but remain confident in the company’s long-term strategy, strong market position and attractiveness of the global streaming market.”

While we acknowledge the potential of NFLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.