I have never had Netflix (NASDAQ: NFLX) Actions for my personal personal retirement (SIPP) or ISA shares and shares. At the price of shares of 1,010% over the past decade it was a costly mistake.

However, I still see five sturdy reasons to consider buying it. Here they are.

It is still growing

One thing that could reject investors is Netflix size. At the end of 2024, he had over 300 m. How many subsequent chapters were in this epic history of growth?

This is a legal question. But we just saw in Q2 (reported on July 17) that the streaming giant is still developing. Revenues increased by 16% in a year to USD 11.08 billion, driven by more members, higher subscription prices (more on this subject below) and increased advertising revenues (Ditto).

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

Looking to the future, the management sees full annual revenues of USD 44.8 billion-USD 45.2 billion (higher than previously thought). This would like a solid raise by about 15-16%.

King of content

Another reason I am stubborn is that Netflix has something for everyone. His up-to-date animated film KPOP Demons Hunters is a global sensation while Adolescence She even caused a debate in the UK parliament at the beginning of this year.

In Q2, the third season Squid game raised the stunning 122 million views, a Extraterritorial From Germany (views 89 million) and a film in Spanish Bad influence (46 m) They both went well.

It is worth noting that the three examples are the content of a non -English language, which currently accounts for over a third of all Netflix watching.

In the second half the second season Wednesday and Stranger things The final will be issued. It can be said that Netflix remains content.

Price power

At the weekend I paid £ 24.99 for watching Uyk vs Dubois 2 on Dazn. But in September I will be able to enjoy Canelo vs Crawford Boxing Mega-Fight Live as part of my Netflix subscription. In my eyes it is great value.

Netflix raised subscription prices in January, which did not cause mass appeals. Therefore, I think it has a lot of price power to bend.

I mean that the cheapest plan, standard with advertisements, today costs only £ 5.99 per month. It’s less than fish and tokens!

New revenues

Speaking of ADS, the company has completed the implementation of Netflix Ads Suite, its reserved advertising platform. Management is expecting double -global advertising revenues this year before it reaches USD 9 billion by 2030.

The main risk I see here is the valuation. After a height of 37% so far the actions are turned on 48 -earnings forward. If the growth unexpectedly slows down, say, because the deterioration of the economic situation affects the global AD market, Netflix shares may go back.

The company is also in the face of growing competition for younger recipients, especially with Tiktok and YouTube.

However, long -term advertising is targeted by a up-to-date revenue driver, especially since Netflix goes on to sport live.

Artificial intelligence

Finally, Netflix recently used generative artificial intelligence to create visual effects for the first time in one of the original series (Eternal). The Ted Sarandos coefficient commented: “AI is an amazing opportunity to help developers improve movies and series, not just cheaper. “

When AI improves over time, I expect it to reduce production costs, raise creativity, and eventually intensify the margins of profit.