Netflix, Inc. (NFLX): A Bull Case Theory

We came across a bullish thesis on Netflix, Inc. on Accrued Interest’s Substack by Simeon McMillan. In this article, we will summarize the bulls’ thesis on NFLX. Netflix, Inc.'s share was trading at $1,218.47 as of September 23rd. NFLX’s trailing and forward P/E were 51.92 and 38.91, respectively according to Yahoo Finance.

Netflix continues to demonstrate its strength as a leading global streaming platform, with its August share of U.S. TV viewership at 8.7%, slightly below the all-time high of 8.8% reached in July but still marking the second-highest month on record. Importantly, viewership grew 10% year-over-year, up from 7.9% in August 2024, reinforcing its position as the solid #2 behind YouTube. While the data suggests Netflix may be facing a natural ceiling around 9% of total viewership, the addition of live sports is expected to drive further penetration, positioning the company to break above this threshold over time.

The streaming giant continues to benefit from a diversified content model that combines original programming with acquired series, ensuring steady engagement across demographics. During the measured interval, Netflix’s top-performing titles—originals such as Wednesday, KPop Demon Hunters, and The Hunting Wives, along with acquired hit Sullivan’s Crossing—accounted for over 22 billion viewing minutes collectively across five weeks. This performance highlights Netflix’s ability to build cultural moments around originals while also leveraging outside content to expand its audience.

The company’s capacity to deliver consistent growth from both fronts underscores the resilience of its business model and its ability to deepen user engagement even as competition intensifies. With incremental drivers like sports rights, a broad content pipeline, and international expansion, Netflix remains well positioned for further upside, especially if it surpasses the 9% share ceiling that has thus far capped its U.S. viewership. The risk/reward remains favorable as the platform combines growth with durability in consumer attention.

Previously we covered a bullish thesis on Netflix, Inc. (NFLX) by Margin of Sanity in May 2025, which highlighted the hidden value in Netflix’s amortized content library supporting long-term engagement. The company’s stock has appreciated approximately by 6.47% since our coverage. The thesis still stands as the library’s value remains underappreciated. Simeon McMillan shares a similar perspective but emphasizes Netflix’s growing viewership and sports expansion.

Netflix, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 133 hedge fund portfolios held NFLX at the end of the second quarter which was 150 in the previous quarter. 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 doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HGTY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.