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1 Reason I’m Never Selling Netflix Stock

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By Ronald Tech

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.

See also  <!DOCTYPE html><html lang="en"><head> <meta charset="UTF-8"> <meta http-equiv="X-UA-Compatible" content="IE=edge"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title>Wealth Tax: Debating the Top Tax Bracket</title></head><body> <h2>Debate Over the Wealth Tax</h2> <p>Are the wealthy getting away with not paying their fair share of taxes, or are they carrying an unfair burden? The debate over the top tax bracket rages on as concerns about income inequality and the concentration of wealth at the top of the economic ladder continue to make headlines. Senators Bernie Sanders and Elizabeth Warren have both proposed a wealth tax on the ultra-rich, while even multi-billionaire Warren Buffett has vocally expressed support for the idea, suggesting that it is fair for wealthy Americans to be taxed at a higher rate.</p> <p>Currently, the top federal income tax rate stands at 37%, applicable to incomes of $539,000 and higher for single taxpayers and $647,850 and higher for couples filing jointly. However, historical data reveals that the top marginal tax rate has been significantly higher in previous eras. In 1944 and 1945, it peaked at a staggering 94%, and in the late 1980s, it hit a low of 28% under former President Ronald Reagan.</p> <h2>Historical Context and Present Day</h2> <p>The taxation of the wealthy has fluctuated significantly throughout U.S. history, demonstrating both higher and lower levels of taxation than the current status. This historical perspective adds complexity to the ongoing debate regarding whether the rich are paying their fair share of taxes. Despite the disputes, recent data from the IRS sheds light on the current tax scenario.</p> <h2>Top 1% Tax Contributions</h2> <p>In 2020, the top 1% of taxpayers—those earning $561,351 or more—contributed a significant 42.3% of the total tax revenue collected. This translates to the top 1% paying more income taxes than the bottom 90% combined. Astonishingly, the top 1% paid a staggering $723 billion in income taxes, while the bottom 90% collectively contributed $450 billion.</p> <h2>State-Level Analysis</h2> <p>Examining the tax burden on the wealthiest individuals at the state level yields interesting findings:</p> <h3>Alabama</h3> <ul> <li><strong>Minimum income to be considered 1%</strong>: $404,560</li> <li><strong>Average income of the 1%:</strong> $1,107,769</li> <li><strong>Average income tax paid by the 1%:</strong> $263,845</li> <li><strong>Average tax rate of the 1%:</strong> 23.82%</li> </ul> <h3>Alaska</h3> <ul> <li><strong>Minimum income to be considered 1%</strong>: $466,905</li> <li><strong>Average income of the 1%:</strong> $999,772</li> <li><strong>Average income tax paid by the 1%:</strong> $253,754</li> <li><strong>Average tax rate of the 1%:</strong> 25.38%</li> </ul> <h3>Arizona</h3> <ul> <li><strong>Minimum income to be considered 1%</strong>: $485,146</li> <li><strong>Average income of the 1%:</strong> $1,464,848</li> <li><strong>Average income tax paid by the 1%:</strong> $369,426</li> <li><strong>Average tax rate of the 1%:</strong> 25.22%</li> </ul> <h3>Arkansas</h3> <ul> <li><strong>Minimum income to be considered 1%</strong>: $387,666</li> <li><strong>Average income of the 1%:</strong> $1,483,925</li> <li><strong>Average income tax paid by the 1%:</strong> $313,266</li> <li><strong>Average tax rate of the 1%:</strong> 21.11%</li> </ul> <h3>California</h3> <ul> <li><strong>Minimum income to be considered 1%</strong>: $726,188</li> <li><strong>Average income of the 1%:</strong> $2,430,790</li> <li><strong>Average income tax paid by the 1%:</strong> $655,180</li> <li><strong>Average tax rate of the 1%:</strong> 26.95%</li> </ul> <h3>Colorado</h3> <ul> <li><strong>Minimum income to be considered 1%</strong>: $609,919</li> <li><strong>Average income of the 1%:</strong> $1,799,148</li> <li><strong>Average income tax paid by the 1%:</strong> $465,284</li> <li><strong>Average tax rate of the 1%:</strong> 25.86%</li> </ul></body></html><!DOCTYPE html><html lang="en"><head> <meta charset="UTF-8"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title>Analysis of Minimum Income of the Wealthiest 1% and Average Tax Rates by State</title></head><body> Analysis of Minimum Income of the Wealthiest 1% and Average Tax Rates by State

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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