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Netflix Has No Dividend. Here's Why Long-Term Investors Should Own It Anyway.

Despite its recent headwind, the streaming giant still offers more growth potential than plenty of other tickers categorized as growth stocks.

Netflix, the streaming giant currently trading on the NASDAQ under the ticker symbol NFLX, has long since passed its peak growth period. Analysts and investors now closely monitor the company's quarterly performance, with the most recent second-quarter results showing a 13.4% year-over-year decline in revenue to $12.56 billion. This weak growth rate, the lowest in the past four quarters, fell short of analysts' lowered expectations of $12.59 billion.

Furthermore, Netflix's own revenue guidance for the current quarter is only expected to outperform the third-quarter of 2025 by 11.7%. As a result, Netflix's stock has struggled since April, when the streaming industry began to transition from its growth phase to a more mature phase. Despite its absence of dividends, long-term growth investors may still consider owning a stake in Netflix, due to the following reasons.

Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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