Netflix's Growth Days May Be Behind It, But Long-Term Investors Should Still Consider Owning It

Netflix's (NASDAQ: NFLX) growth days may be behind it, but that doesn't necessarily mean it's a bad investment for long-term growth investors. Despite its complete lack of dividends, the streaming giant remains a solid buy for two key reasons: the streaming business is here to stay, and Netflix is positioned to continue dominating it.

The Streaming Business is Here to Stay

The streaming business has become an integral part of modern entertainment, and it's not going away anytime soon. In fact, the worldwide streaming market is set to grow at an average annual rate of nearly 11% through 2031, according to an outlook from Mordor Intelligence. This growth is driven by the increasing demand for on-demand entertainment content, and Netflix is well-positioned to continue leading the charge.

Netflix's Dominant Position in the Streaming Market

Netflix is the leading streaming name in the United States, and its European and Middle East arm's revenue improved 11% on a currency-neutral basis last quarter. The company's Latin America arm grew 16% in the same period, and its relatively small Asia/Pacific operation experienced a neutral sales growth of 18% during the second quarter of 2026. This is encouraging, particularly given that Netflix currently serves fewer than half of the planet's broadband customers, and its programming only accounts for a tiny fraction of the world's total television viewing time.

Why Netflix is a Reliable Business with a Powerful Brand Name

Netflix's powerful brand name is a key factor in its continued growth potential. As the first name in the streaming business, Netflix is the yardstick by which consumers measure all other streaming services. The brand name itself is almost synonymous with the word "streaming," making it the name consumers consider first. This gives Netflix its pick of potential partners, if and when it chooses to forge such relationships.

Netflix's Sheer Size and Scale

Netflix's sheer size and scale are another key factor in its continued growth potential. The company's wider profit margins are a testament to its ability to spend as much as it needs to in order to remain ahead of its competitors. This is particularly important in the streaming industry, where the broad slowdown is making it more difficult for rivals to achieve the subscriber growth needed to better compete with the industry's titan.

What to Watch Next: Netflix's Future Growth Opportunities

While Netflix's future numbers may look weaker, the company's growth potential is still significant. The company's ad-supported option is a key factor in its continued growth, and its ability to leverage its powerful brand name in a number of ways beyond the conventional delivery of on-demand entertainment content is a major advantage. This includes a deeper dive into theatrical films, the licensing and monetization of home-grown intellectual property, video gaming, and more.

Conclusion

While Netflix's growth days may be behind it, the company remains a solid buy for long-term growth investors. Its dominant position in the streaming market, powerful brand name, and sheer size and scale make it a reliable business with a significant growth potential. Even without dividends, Netflix is a stock worth considering for investors looking to ride out the ups and downs of the streaming industry.