Down 25%, Is It Finally Time to Buy Netflix (NFLX) Stock?
Netflix shares are down 25% in 2026, but the company has averaged annual gains of 21% over the past 15 years. Is this a good opportunity to invest in Netflix?
Intelligence analysis by Llama
Despite a 25% decline in 2026, Netflix's shares are attractively priced, with a forward-looking price-to-earnings ratio of 22, below its five-year average of 31. The company has been broadening its offerings, including live sports broadcasts, games, and podcasts.
Imagine you have a favorite TV show that you love watching. Netflix is like a big library of shows that you can watch whenever you want. But sometimes, Netflix might not have new episodes of your favorite show for a long time, and that can be frustrating. Some people are worried that Netflix is relying too much on raising the prices of its service to make more money, rather than finding new ways to make its shows better.
Analysis
A $60B Vote of Confidence
Netflix has been a powerhouse performer, but its growth appears to be slowing. Shares of Netflix are attractively priced right now. The company has averaged annual gains of 21% over the past 15 years, but in 2026, shares are down 25%. This decline has led some investors to question whether it's time to buy Netflix stock.
Why Invest in Netflix?
Netflix is a streaming powerhouse, along with Amazon's Prime Video service. Per Evoca.tv, Netflix's recent U.S. streaming market share was 21%, vs. 22% for Amazon Prime Video. The company has boasted that 'We are entertaining over half a billion people in more than 190 countries and 50 languages...'
Why Might You Not Invest in Netflix?
Of course, there are some concerns to consider. There have been reports of Netflix losing viewers between seasons of various shows due to too long a wait for the next season. Also, some worry that it's relying on price increases for growth more than it should. Be sure to look at the whole picture before deciding whether to invest in Netflix.
Key points
- Netflix shares are down 25% in 2026, but the company has averaged annual gains of 21% over the past 15 years.
- The company has been broadening its offerings, including live sports broadcasts, games, and podcasts.
- Netflix's shares are attractively priced, with a forward-looking price-to-earnings ratio of 22, below its five-year average of 31.
If Netflix can find a way to balance its pricing strategy with the quality of its content, it could see a significant increase in its stock price. Additionally, the company's recent efforts to expand its offerings, such as live sports broadcasts and games, could attract new customers and boost revenue.
If Netflix continues to lose viewers due to its content strategy, it could lead to a decline in its stock price. Additionally, the company's reliance on price increases for growth could lead to a decrease in customer satisfaction and ultimately, a decline in revenue.
