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Netflix shares drop post-earnings but remain a Buy on strong long-term growth and valuation.

Analyst Insights
21 Oct 2026
Seeking Alpha
View Source
Bullish
Netflix shares drop post-earnings but remain a Buy on strong long-term growth and valuation.

Netflix shares fell after its Q3 2026 earnings report due to weaker Q4 guidance and reduced ad revenue outlook. Despite this, the company shows strong subscription retention, pricing power, and international engagement driven by content investments. Advertising revenue delays are due to execution issues, not demand, with long-term ad growth prospects still promising. Valuation is attractive at about 18 times FY26 earnings, below historical averages, and ongoing share buybacks should enhance shareholder returns, making it a compelling Buy opportunity.

Netflix shares are currently trading at their 52-week low of USD 65.04 on Pluang, down 5.27% in the past day. The stock sees a nearly even split in order activity with 53% selling and 47% buying as of Oct 22, 2026 11:11 WIB.

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