- - 1 Reason I'm Never Selling Netflix Stock

Anders Bylund, The Motley FoolDecember 22, 2025 at 8:03 AM

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Key Points -

Netflix has gained more than 24,000% since June 2006, turning a modest investment into a life-changing nest egg.

The company killed the DVD rental chains and now dominates streaming; game-changing adaptability is its superpower.

The stock's hypergrowth days may be over, but its role as a long-term portfolio anchor remains strong.

10 stocks we like better than Netflix ›

I have held Netflix (NASDAQ: NFLX) stock in one account or another since 2006.

That summer, I wrote a 5,000-word overview of the video rental industry for another media outlet. It took me weeks to research that piece, including visits to the leading video rental stores around town and a phone interview with Netflix press chief Steve Swasey.

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And by the end of that process, I was convinced that the movie industry was destined for fundamental changes -- and that Netflix would lead the charge into whatever was next. I had to own that stock, pronto.

That insight has served me well over the years. As of Dec. 19, 2025, Netflix's stock has soared more than 24,000% since June 2006.

The company's relentless creativity turned my modest investment into a life-changing nest egg. In the interest of rebalancing my portfolio, I have sold a few shares over time. But Netflix remains the largest holding in my investment accounts, and it will probably stay that way forever (for all intents and purposes).

People walking around a large, red Netflix logo.

Image source: Netflix.

Netflix's innovation engine keeps humming

I'm not holding on to Netflix stock out of pure nostalgia. The company isn't done building its entertainment empire yet. Netflix will probably look radically different in 10 or 20 years, but its innovative spirit should keep the business relevant and thriving as the industry continues to change.

In fact, I expect Netflix to keep rewriting Hollywood's rulebook, over and over.

You've seen it before. Netflix's exposure to VHS tapes may be limited to a few scenes in Stranger Things and That '90s Show,, but its iconic red DVD mailers drove the tape-rental chains out of business. The company kickstarted digital video streaming, shifting gears as broadband internet connections became widely available.

Fourteen years after the Qwikster-branded separation of DVD mailers and online streaming, Netflix is still the largest and most profitable video-streaming service in the world. Industry veterans Walt Disney (NYSE: DIS), Warner Bros. Discovery (NASDAQ: WBD), and Paramount Skydance (NASDAQ: PSKY) combined have fewer digital subscribers than Netflix.

The next satisfying surprise could be anything

I don't know what's next for Netflix, and that's kind of my point. Whether the proposed buyout of Warner Bros. Discovery succeeds or fizzles out, Netflix will continue to tread unexpected new paths.

The next big thing might be a Warner-infused combo of HBO's production muscle and Netflix's global platform. It could be a game-changing video game service. Netflix might even spin a substantial business around the newfangled real-world entertainment hubs known as Netflix House, making malls cool again with Squid Game and Wednesday-themed experiences. I'm not holding my breath for this one, but you never know.

And I love it that I can't tell where Netflix is going. As I mentioned earlier, Netflix is a serial innovator, and that's how you sustain a business for decades. Meanwhile, Netflix's stock is probably all done with the market-crushing hypergrowth of the first two decades. The stock serves a different, more mature role in my portfolio these days.

And that's all right. Those Netflix shares aren't going anywhere, unless they soar again and force another rebalancing. Cry me a river, right?

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Source: “AOL Money”