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Netflix shares fall 29% YTD despite strong Q3 earnings and buybacks, ad revenue outlook dampens hopes for rebound.

Company Fundamentals
23 Oct 2026
24/7 Wall Street
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Bearish
Netflix shares fall 29% YTD despite strong Q3 earnings and buybacks, ad revenue outlook dampens hopes for rebound.

Netflix's stock has dropped 29% this year despite a strong Q3 earnings beat, record stock buybacks, and improved margins. The decline is driven by weaker-than-expected advertising revenue guidance and a cautious Q4 revenue forecast, overshadowing the positive headline numbers. Netflix's future performance hinges on the success of its ad-supported tier, which is expanding globally but has faced rollout delays. Investors are advised to remain cautious until the next earnings report reveals clearer signs of growth and execution in the ad business.

Netflix shares are trading near their 52-week low at USD 65.91, down 1.70% as of Oct 24, 2026, 02:01 WIB on Pluang. Despite the stock's 29% decline this year mentioned in the article, current Pluang order activity shows a strong sell sentiment with 78% of orders to sell versus 22% to buy. The typical hold time of 127 days suggests investors are holding positions for the medium term amid ongoing uncertainty about Netflix's ad-supported tier and revenue outlook.

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