Netflix's performance in 2025 has given investors new hope. This streaming giant has steadily driven revenue growth by increasing advertising, raising prices, and enhancing user engagement. With the improvement in subscription user engagement and new growth supported by advertising, these factors are providing strong momentum for the company.

Recent data shows that Netflix has demonstrated significant operational leverage. Second-quarter earnings increased by approximately 16%, reaching $11.1 billion, while operating income surged by 45% to $3.8 billion. This growth is not only due to healthy membership growth and price increases but also benefited from favorable exchange rate changes. Management has raised its full-year revenue guidance for 2025, indicating market expectations for the sustainability of its growth.

Netflix's advertising business is also steadily expanding. The company has completed the deployment of its internal advertising technology and has made some progress in the U.S. market. Advertisers and investors are filled with expectations for the potential of this area, not only because it can create incremental revenue for Netflix, but also because its impact on user experience can be said to be minimal.

Looking ahead, Netflix seems to have established a solid foundation for profit growth. Although the stock valuation is relatively high, market expectations remain optimistic as operating profits continue to rise, and advertising, pricing, and user engagement are all contributing to increased revenue. While the advertising business is still in its early stages, the expected improvements in technology suggest that the income generated will be more substantial, and it will not significantly impact the member experience.

Although competition is fierce, Netflix steadily secures its position through active content investment and innovation. Patience is key for investors. While today's earnings may not be as glamorous as in the past, Netflix's fundamentals seem solid in the long run. With stable margin expansion and new revenue streams, the company still holds the potential to provide long-term attractive returns for holders. In this light, slow and steady growth can indeed be a wise investment strategy.