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Netflix shares drop 12% post-earnings but remain a strong buy on growth and margin outlook

Analyst Insights
21 Apr 2026
Seeking Alpha
View Source
Bullish
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Netflix's stock fell 12% after its Q1 FY2026 earnings report, despite beating revenue expectations due to currency benefits. The company did not raise its full-year guidance as constant-currency revenue was below forecast. However, Q2 amortization expenses are expected to peak and then decline, which should improve margins and earnings later in the year. With ad revenue projected to double and strong free cash flow supporting share buybacks, the recent selloff is seen as a buying opportunity rather than a sign of major growth concerns.

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