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Netflix earnings grow faster despite slower revenue, signaling undervaluation at 20x earnings.

Company Fundamentals
27 Oct 2026, 19:30 WIB
Seeking Alpha
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Bullish
Netflix earnings grow faster despite slower revenue, signaling undervaluation at 20x earnings.

Netflix's earnings are accelerating even as its revenue growth slows, driven by scale advantages in content economics. The company sees significant potential in advertising as a new revenue stream, despite it being in early stages. Concerns about watch-hour declines have not impacted customer retention or profitability. Trading at about 20 times earnings, Netflix appears undervalued relative to its earnings power, making it an attractive investment opportunity according to the analyst.

As of Oct 27, 2026 23:41 WIB, Netflix shares trade at USD 62.71 on Pluang, down 1.86% for the day. Despite the slight price dip, the stock shows strong investor interest with 86% of Pluang orders buying and a typical hold time of 127 days. The company’s market cap stands at $266.08 billion, underscoring its significant scale in the media sector.

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