Netflix’s Lofty Valuation Has Even Bullish Investors Nervous

Netflix Inc. investors face a dilemma: Continue to bet on a stock that has delivered best-in-class returns over the past year or reconsider shares that increasingly look like they’re priced for perfection.

The streaming giant’s stock price has nearly doubled over the last 12 months amid growth from advertising sales, subscription price increases and limited exposure to tariffs. While that makes it one of the best performing S&P 500 members over that span, it’s also boosted its valuation to 45 times expected earnings for the next year. In comparison, Nvidia Corp. is priced at 32 times while the Nasdaq 100 is at 27 times.