# Netflix Stock Drop Creates Buying Opportunity

> Netflix shares fell after earnings but analysts see a chance to buy at lower prices.
- Title: Netflix Stock Drop Creates Buying Opportunity · Seekingalpha
- Summary: 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…
- Keywords: netflix, stock, sell-off, buying opportunity, earnings, value investing, money, business, Drop, Creates, Buying, Opportunity
- Source: Seekingalpha — https://seekingalpha.com/article/4956148-netflix-sell-off-creates-a-buying-opportunity
- Author: Value Capital Research
- Published: 2026-10-22T03:58:25+00:00
- Read time: 1 min
- Topics: netflix, stock, sell-off, buying opportunity, earnings, value investing, money, business
## 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.
## Key takeaway

Netflix's stock dropped after earnings but value investors see a buying opportunity.