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Meta, Netflix, Robinhood Markets and DoorDash stand out as founder-run companies with strong vision, innovation, and long-term growth drivers.

Netflix's recent use of generative AI to create a building collapse scene in the sci-fi show "El Eternauta" ("The Eternaut") marks more than a technological milestone. It reveals a fundamental psychological tension about what makes entertainment authentic.

In 2Q25, Netflix's revenue grew by 16% year-on-year to $11.08 billion. During this period, margins expanded substantially. Operating and net income grew by 45.02% and 45.55%. Despite its maturing business, NFLX's current initiatives, such as its local for local strategy and Netflix Houses, will continue to support the company's topline growth. Although competition intensified, NFLX has managed to defend its position and emerge as a FCF powerhouse. Currently, NFLX has a FCF margin of 20.37%, outperforming the industry average of 9.85%.

I'm concerned about the overheated stock market and recommend rotating out of momentum winners like Netflix into safer assets. Despite Netflix's strong Q2 earnings, its stock fell, signaling investor fatigue with its high valuation and reliance on price hikes for growth. Netflix's modest underlying viewership and subscriber growth raise doubts about sustaining double-digit revenue growth without further price increases.

Netflix reported a good quarter, with EPS and revenue beating estimates by +2% and fractionally, respectively, while operating income came in 3% ahead of the consensus. It also raised guidance for calendar 2025. Revisions post the July 17th earnings release for forward free cash flow estimates continue to track higher. Management addressed the heavily tilted back-half of 2024 releases which have skewed the company's operating margin, and they noted that while the operating margin guidance for NFLX was raised once again after the July 17th earnings release, the full-year operating margin will be higher than what was seen as of the Q2 '25 number.

Netflix (NFLX 0.00%) recently reported another strong quarter, a testament to the company's ability to continually innovate and find ways to grow. It has been successful in making its own movies and shows, offering ads, and cracking down on password sharing -- all moves that may not have been all that convincing when they were first announced.

Let's start with an important caveat. Since investors have different goals, preferences, risk tolerances, and available capital, it's challenging to choose a stock that everyone would universally consider a smart buy.

In the past decade, Netflix (NFLX 0.00%) shares have soared 955%. Just this year (as of July 23), they are up 32%.

Former NBC Cable President Tom Rogers is raising concerns about Netflix amid a competitive streaming environment.

Netflix is quietly searching for an exec to lead its video podcast efforts. The streamer is chasing YouTube, which has cemented itself as a video podcast titan.