Investment
Features
FeesSafety
Academy
More
Pluang+

Netflix shares drop 40% in a year despite strong earnings growth, offering a buying opportunity.

Analyst Insights
08 Jul 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Netflix shares have fallen over 40% in the past 12 months, significantly underperforming the market and other tech stocks. This decline appears disconnected from its strong operating performance, including 18% year-over-year EBIT growth and resilient membership economics. The stock trades at a 34% discount to its 5-year average valuation, supported by strong operating leverage, low customer churn, and accelerating advertising revenues expected to double to $3 billion. Upcoming catalysts such as Q2 earnings, ad fill rate expansion, and potential gaming revenue suggest significant upside potential, leading to a Strong Buy rating.

More News (NFLX)

banner-footerbanner-footer

Invest & Trade with
#1 Award-Winning Investment Super App