From Seekingalpha · Value Capital Research · · 1m
Netflix Stock Drop Creates Buying Opportunity
Netflix shares fell after earnings but analysts see a chance to buy at lower prices.
In brief
Netflix shares fell after earnings but analysts see a chance to buy at lower prices. Netflix's stock dropped after earnings but value investors see a buying opportunity. Originally reported by Seekingalpha.
Netflix shares drop after earnings
Netflix shares declined after its third-quarter 2026 earnings report as investors were disappointed by weaker-than-expected fourth-quarter guidance and a downward revision of the advertising revenue outlook.
Analyst sees buying opportunity
Value Capital Research analyst sees the recent correction as an attractive entry point for investors.
Strong subscription business
Netflix's subscription business shows strong retention and pricing power supported by content investments and solid engagement, especially in international markets.
Advertising revenue outlook cut
Advertising revenue outlook was cut but execution delays, not demand, are the main issue; long-term ad growth remains compelling with global expansion and tech enhancements.
Current valuation at 18x FY26 EPS
Current valuation at ~18x FY26 EPS is well below historical averages, and ongoing buybacks should be accretive to shareholder returns.
The big picture
Netflix's stock dropped after earnings but value investors see a buying opportunity.
