Netflix uvádí, že více než třetina sledovanosti už připadá na obsah v jiných jazycích a v první polovině roku 2026 diváci zhlédli přes 97 miliard hodin. Globální lokální produkce má posilovat růst a udržet vyšší příjmy.
Key Takeaways Netflix's global content strategy is expanding audiences, engagement and long-term revenue drivers.More than one-third of viewing comes from non-English programming, aiding acquisition and retention.Members watched over 97 billion hours in first-half 2026 as Netflix expanded its global content pipeline. Netflix’s (NFLX - Free Report) global content strategy is making its growth more durable by expanding its international audience, strengthening engagement and diversifying its revenue and engagement drivers across global markets. The company continues to invest in local-language originals across major markets such as South Korea, India, Spain, South Africa and Mexico, with several regional productions evolving into global hits. Management noted that more than one-third of all viewing now comes from non-English programming, underscoring the increasing role of international content in driving subscriber growth and engagement.
This diverse content portfolio also strengthens multiple revenue drivers. Netflix estimates it has penetrated less than 45% of global households, captured only about 7% of its addressable revenue opportunity and accounts for roughly 5% of global TV viewing, highlighting significant room for international expansion. A broader mix of local and global programming supports this opportunity by improving subscriber acquisition and retention, enhancing pricing power and expanding the advertising business. Importantly, Netflix continues to grow content spending at a slower pace than revenue growth, reflecting disciplined investment as it scales its global library.
Supporting this strategy, Netflix's July 2026 "What We Watched: First Half of 2026" report disclosed that members watched more than 97 billion hours in the first half of the year. Looking ahead, the company continues to strengthen its worldwide content pipeline with new international productions such as Go Team! (Spain), Four Hands, Two Sonatas (South Korea), Operation Safed Sagar (India), Badly in Love Season 2 (Japan) and Nando Between Two Worlds (Brazil), alongside major franchises including Lupin Part 4, The Gentlemen Season 2, Avatar: The Last Airbender Season 2 and Peaky Blinders: The Immortal Man. This balanced mix of successful local originals and global franchises reinforces user engagement and supports more durable long-term revenue growth.
Netflix Faces Stiff Competition From Key RivalsDisney (DIS - Free Report) is challenging Netflix by expanding Disney+ internationally, increasing investment in local content and strengthening its technology. In contrast to Netflix's 'content-first' model, Disney combines globally recognized franchises and cross-platform IP with locally produced original programming. It leverages Disney parks, sports and merchandise marketing to deepen engagement while simultaneously expanding its operations beyond the United States.
Warner Bros. Discovery (WBD - Free Report) competes with Netflix by rapidly expanding HBO Max globally, investing in international launches, and combining its century-old film and television library with local-language original programming. WBD prioritizes curated, high-quality content over sheer volume and leverages iconic franchises and local hits to drive subscriber growth and strengthen global engagement.
NFLX’s Price Performance, Valuation & EstimatesShares of Netflix have declined 26.5% year to date, underperforming both the Zacks Broadcast Radio and Television industry and the Zacks Consumer Discretionary sector’s fall of 21.9% and 11.5%, respectively.
NFLX’s YTD Share Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Netflix appears overvalued, trading at a forward 12-month price-to-earnings ratio of 18.43X, higher than the sector’s 16.12X. NFLX carries a Value Score of D.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NFLX’s 2026 earnings is pegged at $3.59 per share, down by a penny over the past 30 days. This indicates a 41.9% increase from the previous year.
Image Source: Zacks Investment Research
NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acumen Wealth Advisors v 1. čtvrtletí zvýšila podíl v Netflixu o 3 252,2 % a nakoupila dalších 24 489 akcií. Po transakci držela 25 242 akcií v hodnotě 2,427 mil. USD.
Acumen Wealth Advisors LLC lifted its position in Netflix, Inc. (NASDAQ:NFLX – Free Report) by 3,252.2% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 25,242 shares of the Internet television network’s stock after acquiring an additional 24,489 shares during the period. Acumen Wealth Advisors LLC’s holdings in Netflix were worth $2,427,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also bought and sold shares of the company. Brighton Jones LLC grew its position in shares of Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after purchasing an additional 257 shares during the period. Revolve Wealth Partners LLC raised its holdings in Netflix by 16.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock worth $912,000 after buying an additional 144 shares during the period. Sivia Capital Partners LLC lifted its stake in Netflix by 21.2% in the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after buying an additional 246 shares in the last quarter. Strategic Investment Advisors MI lifted its stake in Netflix by 18.9% in the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock valued at $1,036,000 after buying an additional 123 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its holdings in shares of Netflix by 12.1% in the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock valued at $2,832,000 after buying an additional 228 shares during the period. Institutional investors own 80.93% of the company’s stock.
Wall Street Analyst Weigh In A number of brokerages recently commented on NFLX. Stephens started coverage on shares of Netflix in a report on Friday. They set an “overweight” rating on the stock. Pivotal Research lowered their target price on Netflix from $96.00 to $70.00 and set a “hold” rating for the company in a report on Friday, July 17th. BMO Capital Markets downgraded Netflix from an “outperform” rating to a “market perform” rating in a research note on Monday. Barclays dropped their price target on Netflix from $85.00 to $80.00 and set an “equal weight” rating on the stock in a research note on Friday, July 17th. Finally, Moffett Nathanson reduced their price objective on Netflix from $120.00 to $115.00 and set a “buy” rating for the company in a research report on Wednesday, June 17th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $104.21.
View Our Latest Research Report on Netflix
Key Netflix News Here are the key news stories impacting Netflix this week:
Positive Sentiment: Netflix delivered an earnings beat and continues to post double-digit revenue growth, while bulls argue the selloff has made the stock look inexpensive on earnings and cash flow. Netflix “Is Not a Broken Company” and Trades At Just 19x Earnings. Jim Cramer Says Start Buying Positive Sentiment: Several analysts and commentators say the post-earnings drop may have created a buying opportunity, citing Netflix’s ad business, live content ambitions, international growth, and strong free-cash-flow potential. Netflix (NFLX) Stock Still Looks Cheap On Cash Flow And Earnings Positive Sentiment: Phillip Securities upgraded Netflix from “moderate buy” to “strong-buy,” with one analyst saying engagement shows no signs of slowing and setting a higher price target than the current trading level. Netflix, Inc. (NFLX) is Attracting Investor Attention: Here is What You Should Know Neutral Sentiment: Wall Street coverage remains active and largely mixed-to-bullish, with some reports pointing to meaningful upside in consensus price targets even after the recent slide. Netflix Fell 45% Over 12 Months But This Ratings House Sees A Doubling Share Price Negative Sentiment: Investors are worried about softer revenue guidance, slowing growth momentum, and Netflix making viewership metrics harder to track, which raises questions about transparency and future monetization. Netflix (NFLX) Could Be 18% Undervalued After Soft Guidance Raised Fresh Growth Questions Negative Sentiment: Multiple articles described the stock’s recent action as a sharp post-earnings crash or “miserable stretch,” reflecting concern that the latest quarter did not convince investors that growth will reaccelerate soon. Netflix just made its slowdown harder to measure Insider Transactions at Netflix In other Netflix news, Director Bradford L. Smith sold 35,990 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the transaction, the director owned 79,690 shares of the company’s stock, valued at $6,177,568.80. The trade was a 31.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total value of $2,402,636.64. Following the sale, the chief executive officer owned 284,804 shares in the company, valued at approximately $25,054,207.88. This represents a 8.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 899,839 shares of company stock valued at $80,141,661. 1.24% of the stock is owned by insiders.
Netflix Stock Up 1.6% Shares of NFLX stock opened at $68.67 on Wednesday. The firm’s fifty day moving average price is $79.42 and its two-hundred day moving average price is $86.49. The company has a current ratio of 1.14, a quick ratio of 1.41 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. The firm has a market capitalization of $285.94 billion, a P/E ratio of 21.61, a PEG ratio of 0.85 and a beta of 1.52.
Netflix (NASDAQ:NFLX – Get Free Report) last announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.01. The company had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.72 EPS. On average, equities analysts predict that Netflix, Inc. will post 3.6 EPS for the current fiscal year.
Netflix Profile (Free Report)
Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.
The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.
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Netflix po výsledcích prudce oslabil, ale Jim Cramer ho označil za „nepoškozenou“ firmu a vidí v 19násobku očekávaného zisku vstupní příležitost. Doporučuje začít s malou pozicí a postupně přikupovat.
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Jim Cramer used his Tuesday, July 20, CNBC Mad Money segment to defend Netflix (NASDAQ:NFLX | NFLX Price Prediction) after a punishing post-earnings sell-off, telling viewers the streamer’s slide into the high-$60s makes the stock worthy of a closer look.
“This is not a broken company. It’s one of the best companies around with one of the best products, and the numbers are still better than most,” Cramer said, framing the stock’s 19x forward earnings multiple as an entry point patient investors have been waiting for.
Netflix shares are down 8.44% over the past week, 12.64% over the past month, and 44.1% over the past year, closing Tuesday at $68.67. That’s a sharp reset from levels near $95.55 at the start of April.
Netflix Beat Estimates, but Investors Still Sold the Stock Netflix’s Q2 2026 report on July 16 delivered EPS of $0.80 versus the $0.7883 estimate on revenue of $12.56 billion, up 13.37% year over year, with an operating margin of 33.4%. Growth was broad-based, with Latin America up 21%, Asia Pacific up 16%, EMEA up 14%, and North America up 10%. Netflix narrowly missed on Wall Street’s revenue expectations.
However, Netflix fell from $73.985 at the filing to $68.20 within an hour. Cramer conceded the quarter was a disappointment with a weakening content slate, but pushed back on the idea that the company is now fundamentally broken.
Netflix’s Advertising Revenue Could Double to $3 Billion Cramer shared Netflix’s bull case based on an uptick in advertising revenue. “Advertising revenues should roughly double to $3 billion this year, and management believes the gap between the economics of the ad-supported and the ad-free plans is narrowing,” he said, pointing to a gap now under 45%. On the earnings call, co-CEO Gregory Peters described that closing gap as “near-term, unrealized revenue growth” the company can harvest.
The Company Captures Only 5% of Global Television Viewing Then came the runway argument. “Penetration of its addressable broadband households captures only about 7% of the entertainment revenue available in those markets, and accounts for just about 5% of global television viewing, so there’s still plenty of room for growth,“ Cramer said. CFO Spencer Neumann noted Netflix is approaching 1 billion people in audience with household penetration under 45% of ~800 million addressable households.
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Netflix Repurchased a Record $4.7 Billion of Stock Additionally, Netflix repurchased $4.7 billion of stock in Q2, its largest buyback quarter ever, with roughly $27 billion in remaining authorization after April’s $25 billion refresh. Cramer characterized it as one of the largest corporate buyback programs in America, alongside investments across ads, games, live programming, podcasts, sports, and AI.
Cramer Says Buy a Small Position and Add “Pyramid Style” Cramer advocated for interested investors to start a small position and scale up over time. “I’d put a small position here and then gradually add on to weakness in pyramid style, because I wouldn’t be surprised if the weakness sticks,” he said.
Polymarket’s active weekly market assigns roughly 81% probability that NFLX closes the week of July 20-24 in the $60-$70 range, and the July monthly market puts the highest conviction at $65 with 0.405 probability.
Reddit sentiment mirrors the split Cramer is trying to bridge. Aggregate sentiment scores dropped to 24 on Monday afternoon, while a widely upvoted r/stocks thread titled “Netflix beat earnings, did its biggest buyback and then restricted access to its engagement data and fell 12% through two days” captured the frustration. Wall Street’s average analyst price target sits at $97.91 with 37 Buy and 13 Hold ratings, which represents significant upside from the stock’s current price of $68.67.
What To Watch Cramer believes Netflix’s sell-off has created an attractive entry point, but he cautioned that the stock could remain weak in the near term. His strategy is to start with a small position and gradually buy more if shares continue to fall.
The bull case now depends on Netflix doubling advertising revenue to $3 billion, restoring engagement growth, and meeting its Q3 guidance. If the company delivers, its global growth runway, record share repurchases, and 19x forward earnings multiple could make the current decline a long-term buying opportunity.
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Spolugenerální ředitel Netflixu Ted Sarandos řekl, že firma je „především stavitel, ne kupující“, a velké akvizice mají velmi vysokou laťku. To tlumí spekulace o brzkém převzetí.
Netflix (NFLX +0.53%) investors were disappointed with the company's most recent earnings results. Although the streaming giant continues to grow at a decent pace, it clearly isn't enough to win over growth investors, especially with it projecting its growth rate to decline to 12% for the current quarter (down from 13%).
One opportunity for Netflix to reignite its growth could be via an acquisition. The streaming company failed to acquire assets from Warner Bros. Discovery earlier this year, but Netflix's name continues to pop up in rumors. Investors may be eagerly anticipating news of a deal, in the hopes that it can pave the next wave of growth for the business. But co-CEO Ted Sarandos appeared to have poured cold water on that, stating on the company's earnings call that "we're primarily builders, not buyers."
Image source: Getty Images.
Why Netflix might not go the M&A route Sarandos made it clear on the company's recent conference call that while Netflix may not necessarily be averse to pursuing mergers & acquisitions (M&A), it would have to make a lot of sense for the business to consider one: "Our track record is clear that we have a very high bar to do any big M&A." CFO Spence Neumann also said, "we invest in the business both organically and opportunistically through M&A."
The key word there is opportunistically. When it pursued Warner Bros., Netflix had a great opportunity to acquire top assets and content, including HBO. And it pursued the deal aggressively until it no longer made sense to do so, as the valuation climbed amid a bidding war with Paramount Skydance.
While an acquisition could certainly help Netflix's business grow, management's focus on building rather than simply buying reflects what the company has done over the years. It has reinvested in its own growth, building its content and varied offerings rather than relying on acquisitions. It has yielded strong results as the business has grown tremendously over the years, and may continue to do so for the foreseeable future.
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Is Netflix stock a buy? This year, Netflix's stock has declined by around 30%, as investors have appeared to have lost confidence in the company's path forward. While the market initially breathed a sigh of relief when Netflix walked away from the Warner Bros. deal earlier this year, the rally was short-lived, as concerns about what the company would do with co-founder Reed Hastings leaving the company began to weigh on the stock.
Uncertainty can significantly reduce a stock's value and also create attractive buying opportunities along the way. With Netflix trading near its 52-week low, it may be one of the best growth stocks for long-term investors to buy right now.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
Shares of Netflix (NFLX 1.96%) recently closed at approximely $69, putting the streaming giant down 26% in 2026. The slide is part of a longer and more painful 48% decline over the past year or so. Netflix has generated life-changing returns for investors, so it has a strong reputation on Wall Street and hasn't fallen this far very often in the past decade.
But catching falling knives can be a dangerous game. What seems like the ultimate buying opportunity can easily punish overeager buyers. Here's what to make of the company after its latest plunge following its second-quarter earnings report release last week.
Image source: The Motley Fool.
Wall Street is sounding the alarm on slowing growth The market saw Netflix as a fast-growing darling for years. However, those days might be over. Netflix's revenue growth is suddenly slowing. Revenue grew by 17.6% in the fourth quarter of 2025, followed by 16.2% in the first quarter of 2026, and 13.4% in the second quarter. Making matters worse, management guided for only 11.7% growth in the current quarter, yet another deceleration. Wall Street tends to emphasize quarterly performance, which is working against Netflix at the moment, to be sure.
That's not always healthy, especially for long-term investors. That said, Netflix's slowing growth is definitely becoming a trend. It's worth considering the competitive landscape Netflix must contend with, which includes video games and social media, not just other streaming services. Unfortunately, it's not yet clear whether this is a blip for Netflix or if the business has peaked. Making that distinction will be even harder due to Netflix's decision to offer less transparency into subscriber and viewership data.
Here's why the selling might be overdone Multiple things can be true. Netflix absolutely deserves a lower valuation if its growth is stalling. At the same time, the market might be taking things too far. Even as parts of the business mature, Netflix could still have a very long runway to monetize its users. The company has delved into live sports over the past few years and is monetizing price-sensitive subscribers through ad-supported memberships.
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It's also worth mentioning that Netflix hasn't had very many blockbuster hits recently. That's not ideal, but the next Squid Game or KPop Demon Hunters sensation could suddenly reignite growth at any given moment.
In the meantime, the stock has fallen to just 19 times 2026 earnings estimates. Analysts still see Netflix growing earnings by an average of 21% to 22% annually over the next three to five years. Buying Netflix here is probably a home run if the company grows even close to that. Even assuming annualized growth comes in closer to 10%-12%, the stock could still deliver solid long-term returns from its current price point.
Is this the ultimate buying opportunity? Perhaps not; the stock could easily go lower. But it's easy to like Netflix stock here.
TV specialist Netflix (NFLX 1.99%) reported its second-quarter results on Thursday, and the report itself was uneventful. Revenue rose 13% year over year to $12.6 billion, matching management's forecast, and operating margin came in slightly ahead of plan.
Shares still fell about 7% on Friday, to $68.95 -- within a few dollars of their 52-week low.
The drop extends a miserable stretch. Netflix stock has lost more than 40% of its value over the past year, and it's down about 46% from its 52-week high of $126.71.
The sell-off has also produced a valuation that would have seemed unthinkable a year ago. The streaming giant trades at about 22 times earnings.
So, is the beaten-down growth stock finally a bargain?
Image source: Netflix.
A solid quarter by almost every measure There wasn't much to criticize in the report. Second-quarter revenue growth was driven primarily by membership growth, pricing, and increased ad revenue, and the company delivered double-digit gains in every region. Operating income rose 11% year over year to $4.2 billion, though the company's operating margin of 33.4% narrowed slightly from 34.1% in the second quarter of 2025. And earnings per share climbed 11% year over year to $0.80.
The full-year outlook is intact, too. Management narrowed its 2026 revenue forecast to a range of $51.0 billion to $51.4 billion, representing 13% to 14% growth, and it kept its operating margin target of 31.5%, up from 29.5% in 2025.
That forecast implies operating income growth of more than 20% this year. Netflix also still expects a rough doubling of its advertising revenue in 2026, to about $3 billion.
And the company is notably returning cash to shareholders at a record pace. Netflix repurchased $4.7 billion of its stock in the second quarter (its largest quarter of buybacks ever), and it still has $27.1 billion of repurchase capacity after its board added $25 billion to the program in April.
Clearly, the business itself is doing fine.
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The problem is the trend The problem is Netflix's growth trajectory. In the fourth quarter of 2025, revenue grew 17.6% year over year. Growth slowed to 16.2% in the first quarter of this year, then to 13.4% in the second. And management's third-quarter forecast calls for growth of about 12%.
Each step down is small. But that's three straight quarters of deceleration, with no floor yet in sight -- and some of it, I suspect, is simply the arithmetic of size catching up with the company.
Investors paid a premium for Netflix stock for years because its growth rate kept defying its size. As the growth rate has come down, the market has been repricing the stock from a premium growth story to something closer to a maturing one.
There is a caveat to the 22-times-earnings figure, however. Netflix's trailing profits include a one-time $2.8 billion termination fee the company collected in the first quarter after its deal for Warner Bros. Discovery's studio assets fell apart, and that windfall flatters the multiple.
Shares trade at about 20 times forward earnings. For a company forecasting operating income growth of more than 20% this year, that's arguably a fair price -- maybe even a modest one. But a multiple like this only stays fair if growth stabilizes somewhere near management's forecast. Valuations built on decelerating growth can keep compressing.
Of course, there are also reasons to wonder whether it stabilizes. Members watched more than 97 billion hours on the service in the first half of 2026, up 2% year over year. That's healthy engagement, but pricing is still one of the main drivers of revenue growth these days. The company also describes the entertainment industry as "dynamic and competitive," and it's fighting for viewing time against deep-pocketed rivals.
So, with shares a few dollars off their low and the froth mostly gone, is it finally time to buy? Not for me. The valuation is the most reasonable it has been in years, but the one thing that would make me comfortable paying even 20 times forward earnings (evidence that the growth step-down is leveling off) isn't in the numbers yet. After all, management's own forecast says the slowdown continues at least through the third quarter.
I'll keep watching for that floor. If revenue growth stabilizes in the low double digits while the operating margin keeps expanding, today's price could look cheap in hindsight. But until the trend turns, I'm staying on the sidelines.
Phillip Securities zvýšila doporučení pro Netflix z „accumulate“ na „buy“ a ponechala cílovou cenu 110 USD. Akcie jsou po pátečním propadu o 7 % za poslední rok níže o 46 %.
After a year of poorly received financial updates, Netflix (NFLX 3.13%) was bound to catch a break eventually. The premium streaming pioneer saw its shares tumble 7% on Friday after following up mixed financial results with uninspiring guidance, with the stock down 46% over the past year, but at least one Wall Street pro sees the markdown as a buying opportunity.
Helena Wang at Phillip Securities upgraded the beleaguered stock over the weekend. The move comes after at least 14 analysts slashed their price targets on Friday and another chimed in with a ratings downgrade. The move is timely for a stock that has shed nearly half of its value since hitting an all-time high last summer. Let's take a closer look.
Image source: Getty Images.
Success is relative Wang's move is notable for two reasons, after a flurry of pessimistic Wall Street notes heading into the weekend. Wang's is the lone upgrade so far, bumping her firm's opinion from "accumulate" to "buy." The Philip Securities analyst is also sticking to her earlier price target of $110.
With Netflix stock now sliding following its past five quarterly updates since peaking in June of last year, Wang's upgrade offers a refreshing break from the chart's reality. Netflix is clearly out of favor, despite its ongoing market dominance -- no one else comes to Netflix's paying audience of more than 300 million homes worldwide. This upgrade won't turn momentum around overnight, but it still offers encouragement to investors after a brutal year for the industry trailblazer.
Wang's decision to stick to her earlier target of $110 may not have seemed like much a few months ago, when the shares were higher, but now her unchanged price goal translates into near-term upside of 60% from Friday's close.
The analyst points out that membership trends remain positive and that members aren't flinching at the steady diet of rising subscription rates. Newer streaming services are just starting to turn profitable, but Netflix has consistently been in the black since adding a streaming option to its original disc-based platform almost 20 years ago.
Wang believes that engagement remains strong at Netflix and that profitability can accelerate as it expands its ad-supported monetization. The latter contrasts with analysts who were worried about Netflix's admission during last week's earnings call that it's exploring free ad-supported tiers in some countries outside the U.S. market.
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Field of streams Philip Securities isn't one of the largest firms following Netflix, and the bullish read of the report has been an exception to the rule. However, the upgrade over the weekend is a valuation call in light of the stock's recent markdown.
Netflix is cheap, historically speaking. It kicks off this week at just 19 times this year's projected earnings. Analysts may whittle those profit targets lower in the coming days, but you rarely find Netflix at a forward earnings multiple in the teens.
Analysts were already souring on Netflix even before the numbers became official late last week. A couple of Wall Street pros were putting out cautious notes in the days leading up to the big reveal, not an ideal situation for a stock that was already sorely lagging the market.
There are some near-term concerns. Its revenue guidance for the current quarter -- just shy of 12% year-over-year growth -- would be its weakest showing in three years. With Netflix out of favor, it may feel pressured to strike a dilutive buyout deal with a smaller rival. The stock has to practically double from today's price to return to the all-time high it reached 13 months ago, but there's still time for a Hollywood ending for Netflix.
Mark Mahaney z Evercore ISI si myslí, že „sentiment na Netflixu je nejslabší za poslední čtyři roky“. Řekl to v komentáři ke zveřejněným výsledkům této společnosti s tím, že se čekalo zklamání, a to se také dostavilo. Dobrým signálem také není to, když nějaká firma omezuje dostupnost informací, a to dělá Netflix, když nepodává tolik čísel ohledně vývoje sledovanosti.
Mahaney si myslí, že Netflixu sílí konkurence, jednak ze strany jiných streamovacích platforem a také ze strany rostoucí popularity krátkých videí. Dochází tak k pokračujícímu tlaku na pokles ARPU, tedy průměrného příjmu ze zákazníka, a tlaku na marže pramenícímu z intenzivnější konkurence. Netlix na druhou stranu dokazuje, že je schopný nabízet mimořádně zajímavý obsah a analytik jej a jeho akcii stále považuje za velmi kvalitní. S tím, že obrat v sentimentu a fundamentu ale zřejmě přijde až příští rok.
Mohl by Netflix udělat pro růst akcie „něco dramatičtějšího“? Na tuto otázku analytik odpověděl, že svým způsobem tak činí větším zaměřením na živé přenosy sportovních událostí. A zopakoval, že „v následujících 3 – 6 měsících bude akcie pod tlakem, ale má nastartováno na skok v roce 2027.“ Rich Greenfield z Lightshed Partners na CNBC řekl, že investoři u Netflixu začali předpokládat, že jako společnost už nebude dál růst. „Zpochybňují jeho růstový potenciál… Už dva lidé mi psali, že Netflix je mediální společností starého typu.“
Podle tohoto experta se situace může změnit jen časem tím, že Netflix zase dokáže růst. Investoři ale podle něj momentálně trpělivost nemají, ačkoliv firma tvrdí, že je stále v rané fázi svého rozvoje. Greenfield si přitom myslí, že bude klesat počet konkurentů kvůli různým fúzím, ale „nic z toho nyní nemá velký význam“. I on se však domnívá, že omezení informací není pozitivním krokem, „investoři si pak myslí, že společnost něco skrývá.“
Ross Gerber z Gerber Kawasaki Wealth and Investment Management na Bloombergu řekl, že Netflix udělal velký pokrok v oblasti sportu, ale zřejmě tu nechce dál masivně expandovat. K tomu dodal: „Streamovací byznys nyní dosáhl určitého maxima, je tu dost platforem, hodně obsahu, hodně konkurence. Není to chyba Netflixu, ale konkurence je silná… Dobrou nabídku má třeba HBO.“ Příležitostí pro Netflix by mohly být jednak hry a také distribuce obsahu do kin. To by mohlo generovat „miliardy dolarů ročně“, nikdo by přitom podle něj neměl problém s tím, že na samotnou platformu by se filmy dostaly později.
Gerber podle svých slov nedávno akcie nakoupil, protože se domnívá, že management Netflixu je velmi dobrý a „jen se musí dostat přes současné náročné období“. Má dostatek kapitálu, aby expandoval a „budeme ho dál sledovat my i naše děti… Odhadujeme jeho hodnotu výrazně výš, než je současná cena akcie.“ Minulost také podle Gerbera ukazuje, že firma se s problémy dokázala vždy vypořádat.
Netflix minulý týden klesl kvůli obavám, že vedení je vůči investorům méně transparentní. Firma od roku 2027 sníží zveřejňování údajů o sledovanosti ze dvakrát ročně na jednou za rok.
Shares of Netflix (NFLX 7.26%) sank last week on concerns that the streaming giant's leadership team was becoming less transparent with investors.
Image source: The Motley Fool.
Q2 results weren't the issue Netflix's revenue rose 13% year over year to $12.6 billion in the second quarter, fueled by gains in membership and advertising sales, along with streaming plan price increases.
Management noted that the video platform's view hours increased 2% in the first half of 2026 compared to 1.5% in 2025, despite the draw of the Winter Olympics and the World Cup offered by other TV and streaming networks.
All told, Netflix's operating income and earnings per share climbed 11% to $4.2 billion and $0.80, respectively.
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Declining transparency is disconcerting to investors Netflix narrowed its full-year revenue outlook to $51 billion to $51.4 billion, signifying growth of 13% to 14%. This guidance includes a forecast for ad revenue to double to $3 billion.
The company also expects operating margin to rise to 31.5% from 29.5% in 2025. Operating income, in turn, is projected to rise by more than 20%.
Importantly, Netflix said member engagement remains "healthy," driven by the success of popular original series such as I Will Find You and Swapped.
Yet investors were perplexed by management's decision to reduce the frequency of its closely followed "What We Watched" reports from twice a year to once a year, beginning in 2027.
If engagement trends are strong, why stop reporting viewership data?
Netflix says it wants to focus investors' attention on revenue growth, improving profitability, and free cash flow generation.
But experienced investors know that when a company stops sharing key data, it's usually because its performance in those metrics is weakening.
Netflix po výsledcích za 2. čtvrtletí klesl v poobchodní fázi o 8,2 % kvůli slabému výhledu na 3. čtvrtletí. Tržby mu rostou hlavně díky zvyšování cen.
Netflix (NFLX 7.26%) was down 8.2% in after-hours trading on July 16 at 5:53 PM EDT -- falling to $68.23 per share as investors digested its second-quarter 2026 earnings and weak third-quarter guidance. The problem is abundantly clear -- most of Netflix's revenue growth is coming from price increases.
Netflix's third price increase in less than three years marked a 12.5% jump in U.S. ad-supported monthly pricing, an 11.1% boost in U.S. standard monthly pricing, and an 8% increase in U.S. premium monthly pricing. In its latest quarter, Netflix reported a 13.4% year-over-year increase in revenue and is guiding for a 11.7% year-over-year increase in third-quarter revenue. Which sounds good on paper, until you factor in the glaring reality that price increases are the majority of revenue growth.
Here's what the results mean for investors, how they help paint the picture of why Netflix pursued major acquisitions, and if the growth stock is a buy now.
Image source: Netflix.
Competition for capturing user screen time is intensifying In February, Netflix declined to raise its offer to buy Warner Bros. Discovery, losing the bid to Paramount Skydance. Netflix was also in the hunt to buy Roku before being outbid by Fox Corp. in June.
The moves were somewhat alarming, given Netflix's history of organic growth through licensing and producing its own content. But investors have been concerned that Netflix's viewer engagement is under pressure from a slew of competitors in traditional media, streaming services, gaming, and user-generated content on platforms like Alphabet-owned YouTube.
At its core, Netflix's business model is to have subscription revenue exceed content costs. The more subscription revenue, the more demand for content. And as its global subscriber base has grown and Netflix has aggressively raised prices, there's more pressure for it to produce high-quality, engaging content.
In its July 16 shareholder letter, Netflix emphasized the importance of content quality:
We've used "engagement" as a shorthand for the value we deliver members. But, as we've developed an increasingly sophisticated understanding of how consumers ascribe value to our service, we know not all hours are equal. Time spent is just one aspect of strong engagement -- quality and variety also matter. The key is to improve across all of those dimensions: quality, variety, and quantity.
In practice, Netflix's definition of quality seems to revolve around proven content, such as Warner Bros. Discovery's intellectual property, including franchises like the DC and Harry Potter universes, Game of Thrones, Looney Tunes, and more. Proven content also includes Netflix's push into sports through the latest MLB Home Run Derby on July 13 and marquee NFL games like opening week, Thanksgiving Eve, Christmas Day, and week 18.
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Two sides to the Netflix narrative The glass-half-empty view of Netflix is that the company is desperately trying to buy content at premium prices to keep subscribers engaged and justify price increases. And that Netflix could eventually resemble a modern-day network with an emphasis on live-streamed events rather than pre-produced shows and movies. Netflix's quarter after quarter of slowing growth and dependence on price increases is fueling that narrative, which is why the stock is tanking.
However, the glass-half-full view on Netflix is that the company is simply bigger than it used to be and has the deep pockets to branch into new markets rather than relying heavily on its own content. To its credit, Netflix isn't willing to pay any price for content, as evidenced by its willingness to be outbid by much smaller companies in Paramount-Skydance and Fox. And Netflix has collected a sizable consolation prize in the process through its $2.8 billion termination fee from Warner Bros. Discovery.
Netflix's latest results are disappointing, and it was a mistake in hindsight to raise prices so much in just a few years. But the stock's decline reflects that pessimism -- with Netflix sporting its lowest valuation in years -- trading at just 19.1 times 2026 full-year earnings estimates as of its after-hours price at the time of this writing.
Netflix is no stranger to taking risks Netflix has always been a risk-taking company, from disrupting Blockbuster through mail-order DVDs to pioneering the modern streaming platform to producing award-winning live-action and animated series and movies. Each evolution has been riddled with bumps along the way and periods of investor loss of confidence. And right now, Netflix is enduring another such period as investors question the price it is willing to pay for quality entertainment and if it's making the right choices with sports and pushing into daytime and mobile device viewing.
So while it's understandable if some investors want to wait for the dust to settle and for Netflix to regain its footing, folks who are confident in Netflix's long-term strategy are getting an impeccable opportunity to buy the streaming service stock at a dirt-cheap price.
Netflix ve 2. čtvrtletí zvýšil tržby o 13 % meziročně na 12,6 miliardy USD, ale výhled naznačil další zpomalení růstu. Akcie po výsledcích v after-hours klesly asi o 9 %.
On July 18, 2016 (about ten years ago to the day), Netflix (NFLX 6.90%) shares closed at a split-adjusted $9.88. A $10,000 investment at that price would have bought about 1,010 shares, and with the stock at about $68 as of this writing, that stake would be worth about $68,500 today. That works out to a compound annual return of about 21%. The same $10,000 in the S&P 500 (^GSPC 1.01%) would have grown to roughly $35,000, before dividends.
That return wasn't earned comfortably, though. Holding meant sitting through some ugly weeks, including that very one: the day after Netflix's second-quarter 2016 report showed subscriber growth coming in well below the company's own forecast, shares sank 13%.
Anyone who bought into that plunge did even better, turning $10,000 into nearly $79,000.
And just a few days ago (almost exactly ten years later), Netflix fell hard after a second-quarter report once again. Shares dropped about 9% in after-hours trading as the streaming giant's forecast pointed to slower growth ahead.
The harder call, I think, is whether Netflix can keep compounding from here. Its latest report offers some clues.
Image source: Netflix.
Slowing growth Today's Netflix would be nearly unrecognizable to a 2016 shareholder. The company now generates more revenue in a single quarter ($12.6 billion in Q2) than the $8.8 billion it produced in all of 2016.
The second quarter itself was solid. Revenue rose 13% year over year, in line with management's guidance, with double-digit growth in every region. Earnings per share rose 11% year over year to $0.80. And Netflix's operating margin was 33.4%, down slightly from 34.1% in the year-ago quarter because the company's content amortization is growing faster in the first half of the year. For the full year, management still expects an operating margin of 31.5%, up from 29.5% in 2025.
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Also worth noting: Engagement looks healthy. Members watched more than 97 billion hours of content in the first half of 2026, the company's highest half-year total to date.
The problem is the trajectory. Netflix's year-over-year revenue growth rate has decelerated every quarter this year, from 17.6% in the fourth quarter of 2025 to 16.2% in Q1, 13.4% in Q2, and a forecast of just 11.7% for Q3. Management also narrowed its full-year revenue outlook to $51.0 billion to $51.4 billion, representing 13% to 14% growth.
Growth like that is hardly a crisis. But the hypergrowth that powered the stock's 21% annualized return over the past decade is downshifting.
The case for the next decade Netflix isn't out of growth levers, though.
The most important is advertising. Management said it remains on track to roughly double its advertising revenue this year, to approximately $3 billion -- about 6% of expected 2026 revenue. The company also said its U.S. upfront negotiations are in advanced stages, helped by strong advertiser interest in its live events lineup.
Live programming may be Netflix's most efficient way to win new members. The company expects live events to account for just over 5% of its content spend this year but only about 1% of viewing hours. Yet live programming has accounted for six of its top 10 new-member sign-up days over the past five years. An expanded NFL agreement, including a week-one game this quarter and games on Thanksgiving Eve and Christmas, builds on that approach.
And shareholders are getting paid along the way. Netflix repurchased $4.7 billion of its own stock in Q2, its largest quarter of share repurchases ever, and it still has $27.1 billion left on its repurchase authorizations.
Then there's the valuation. After Thursday's after-hours drop, shares trade at about 21 times forward earnings and sit about 47% below their 52-week high of $127.75. For years, the problem with Netflix stock was a valuation that demanded hypergrowth. Today's price asks for much less.
So, would I put $10,000 into Netflix stock today? Not yet.
A multiple of about 21 times forward earnings is arguably fair for a company growing revenue 13% to 14% with an expanding operating margin. But the growth rate is still stepping down quarter by quarter, and I'd like to see where it settles before buying. Of course, if the deceleration levels off, or if the advertising business scales faster than expected, I could change my mind.
The past decade turned $10,000 into about $68,500. The next one starts from a much bigger base, with a slower engine. So investors should keep their expectations in check.
Netflix klesl před otevřením trhu o 9,2 % po dalším slabším výhledu zisku na akcii a tržeb, které znovu zaostaly za odhady. Trh tak dál pochybuje o tempu růstu.
A drone view shows the Netflix logo on one of the company's buildings in the Hollywood neighborhood in Los Angeles, California, U.S., January 20, 2026. REUTERS/Daniel Cole Purchase Licensing Rights, opens new tab
July 17 (Reuters) - Netflix's (NFLX.O), opens new tab shares tumbled 9.2% before the bell on Friday following another weaker-than-expected earnings forecast from the streaming major, deepening doubts about its ability to sustain growth momentum.
While the company has gone beyond its traditional subscription-driven model, relying on advertising, live content and price hikes to boost revenue per user, it has been locked in a battle for user attention with traditional media such as Walt Disney (DIS.N), opens new tab and social media such as YouTube. The stock is down more than 44% since hitting an all-time high in June 2025.
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"The story lacks excitement," said Jeffrey Wlodarczak, analyst at Pivotal Research Group.
Subscriber growth remains central to Netflix's business, he said, adding that younger audiences are increasingly gravitating toward free social media platforms over long-form content.
"We believe this will result in slower subscriber growth and attempts by the company to offset this via more aggressive price increases and investment in content."
The company forecast quarterly earnings per share and revenue below analyst estimates for a second quarter in a row, on Thursday, with at least 11 analysts lowering their price targets.
The streaming giant will also cut its twice-yearly release of a viewing-hours report to once a year starting in January 2027. It stopped publishing quarterly subscriber numbers in 2025.
The first half of 2026 did little to ease bearish concerns, and the second half's content slate is weaker compared to a year ago, fueling the bear case, according to Jefferies analysts.
Netflix's shares were trading at 19.92 times 12-month forward profit estimates, compared with 13.54 for Walt Disney and Comcast's (CMCSA.O), opens new tab 6.57.
Reporting by Joel Jose in Bengaluru; Editing by Janane Venkatraman
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Netflix has an engagement problem. So it's going to stop talking about it as much.
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Chief Correspondent covering media and technology
Netflix co-CEO Ted Sarandos is walking away from the company's practice of releasing viewer data twice a year. Kevin Dietsch/Getty Images Wall Street worries that Netflix has a problem with engagement — an issue you can see in the audience numbers the streaming giant periodically releases.
No problem, says Netflix: It will deal with that problem by … releasing audience numbers less often.
Netflix says it is going to stop putting out its "What We Watched" report — a voluminous data dump that details viewership for thousands of individual shows and movies — twice a year, as it has been doing since December 2023, and just did Thursday.
Instead, it is going to provide the information once a year.
Why? The company is relatively candid about this in the investor letter it released Thursday afternoon: It wants Wall Street to stop focusing on the performance of its shows and movies.
"The goal of separating the publication of the report from our earnings results is to keep the focus on our primary financial metrics — revenue and operating profit," the company said.
The flip side to that argument: If Netflix felt good about its engagement numbers, it would share them more often.
If you are a close Netflix observer, this move will have a familiar echo. In April 2024, Netflix announced it would no longer release subscriber data every quarter. And it used a similar rationale: It wanted Wall Street to stop paying attention to subscriber data and focus on other metrics instead.
Here, it's important to note that Netflix isn't required to release either data sets, at all. And that many of its competitors — including YouTube, its most formidable foe — provide very little data about their services.
So even though the company has become meaningfully less transparent over the last couple years, it still leads its peer set, by a lot. And while some of the impetus in releasing viewership numbers is to impress Wall Street, it isn't the only reason. Netflix also uses those numbers to woo Hollywood talent who worry their shows and movies may get lost amid all the streamer's offerings.
But the most important context here is the obvious one: Netflix has been getting grief from analysts and investors about worrying trends evident from the data that it has been putting out. The main one: Netflix subscribers appear to be spending less time with Netflix content than they have in the past.
And this month, Bloomberg highlighted that issue — using data directly from Netflix — with a report that showed that some of Netflix's biggest shows are seeing a steep drop-off in their second seasons.
Netflix has multiple answers to engagement worriers. It says that its engagement numbers are actually good, for starters. And on the company's earnings call on Thursday, co-CEO Ted Sarandos insisted that the company's second-season drop-offs are much less than its peers, for instance.
More broadly, the company has been arguing for a while that "quality of engagement" matters more than sheer tonnage. "As we've developed an increasingly sophisticated understanding of how consumers ascribe value to our service, we know not all hours are equal," the company said in its investor letter.
Still, you can tell Netflix is quite sensitive about the engagement issue: The word "engagement" shows up 13 times in Thursday's investor letter.
I don't know whether Wall Street will care about any of this. For years, investors obsessed about Netflix subscriber numbers — so much so that every other entrant in the streaming wars went out of their way to boast about their subscriber numbers. Then Netflix moved on, and investors seemed to move on, too.
But in the last year, Netflix stock has performed miserably, down 40%. A big chunk of that decline came from investors who worried about Netflix's plan to buy Warner Bros. Discovery for $83 billion — partly because they didn't like the idea of Netflix laying out that much cash and taking on debt, and partly because of the suggestion that Netflix felt it needed to spend that much to goose growth again.
But even though Netflix ended up walking away from that deal, it didn't solve its stock problem. Maybe this will help.
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Peter Kafka You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Peter covers media and technology for Business Insider; previously he has worked at Vox, Recode, AllThingsD, and Forbes. He was also the first hire at Silicon Alley Insider, Business Insider's predecessor.
Netflix uvedl, že ve 3. čtvrtletí čeká růst tržeb o 12 % a za celý rok o 13 % až 14 %. Tahounem mají být přírůstky předplatitelů, vyšší ceny a reklama.
MarketBeat Week in Review – 06/29 - 07/03Netflix NASDAQ: NFLX executives said the company remains on track for its 2026 financial plan, pointing to continued subscription growth, pricing gains, rising advertising revenue and a broadening content strategy during the company’s second-quarter earnings interview.
CFO Spence Neumann said Netflix is guiding for 12% reported revenue growth in the third quarter and 11% growth on a foreign-exchange-neutral basis. He said the drivers are “very similar to Q2,” led primarily by subscription revenue growth from membership gains and pricing, along with higher advertising revenue.
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Netflix Stock Is Near 2021 Levels, and Bulls See 4 Reasons to Care“We continue to see healthy acquisition and retention trends on the membership side, and our recent price adjustments are going well on the pricing side,” Neumann said.
For the full year, Neumann said Netflix expects 13% to 14% top-line growth, or roughly 12% on an FX-neutral basis, representing about $6 billion of incremental revenue year over year. He also emphasized that management is focused on the full year rather than quarter-to-quarter fluctuations.
The Netflix-Lionsgate Rumor Exposed a Bigger Shift in Media M&ANeumann said Netflix believes it still has significant room to grow, estimating the company is less than 45% penetrated into about 800 million addressable households globally, has captured about 7% of an addressable revenue market of approximately $670 billion, and accounts for about 5% of global TV viewing share.
Engagement Metrics Remain a Focus Co-CEO Greg Peters addressed investor questions about viewing hours and engagement, saying there is not a direct linear relationship between raw viewing hours and revenue or profit. He cited live programming as an example, noting that live content is expected to account for about 5% of Netflix’s content budget this year but only about 1% of view hours. However, Peters said six of Netflix’s top 10 new member sign-up days over the past five years have come from live events.
By contrast, Peters said kids and family animation series are also expected to represent about 5% of content spending but about 8% of view hours. He said Netflix evaluates engagement across quality, variety and quantity, rather than relying only on total hours viewed.
On the quantity side, Peters said viewing hours grew 2% in the first half of 2026, an incremental 1.5 billion hours compared with the same period last year. He said that was a slight acceleration from 1.5% growth in 2025.
“It’s combined quality, variety, and quantity of engagement that translates into satisfaction and value for members,” Peters said, adding that Netflix continues to see “industry-leading retention,” increased willingness to pay and strong advertiser demand.
Content Spending and Slate Performance Co-CEO Ted Sarandos said most of Netflix’s programming spending continues to go toward core TV series and films, where he said the company has a long track record of generating member value and business returns. Sarandos said Netflix is forecasting content expense to rise about 10% this year, above the 8% average over the last five years but below the 14% average over the past decade.
Sarandos pointed to several second-quarter releases as evidence of the slate’s performance, including “I Will Find You,” which he said was Netflix’s biggest original series launch this year, and “Swapped,” which he said is on track to become the company’s second-biggest original animated film behind “K-Pop: Demon Hunters.”
He also highlighted regional programming, including the South Korean show “Teach You a Lesson,” which he said is on track to become the second-most-watched South Korean show globally on Netflix and the company’s biggest series in South Korea. Sarandos also cited “The Polygamist,” adapted from a Zimbabwean novel for South Africa, and “Rosario Tijeras” in Latin America.
Asked about concerns over second-season viewership declines, Sarandos said Netflix is not seeing a material change in aggregate second-season viewing compared with first seasons. He said second seasons are performing within expectations and that second-season falloff has “slightly improved” this year compared with last year. He also said there are no changes to Netflix’s release strategy.
Live Events, Partnerships and New Formats Sarandos said live programming is playing an important role in driving acquisition, accelerating advertising revenue and generating conversation. He cited the World Baseball Classic in Japan, which he said became Netflix’s most-watched program ever in Japan and the biggest baseball streaming event ever.
While Sarandos said such live events can show slightly higher churn because they drive disproportionate sign-ups, he said results were in line with expectations and Netflix plans to continue expanding its global live event calendar, including regional live events.
Peters also discussed Netflix’s partnership with TF1 in France, saying the integration is still early at four weeks but that the company is pleased with the performance so far. He said the arrangement adds local French programming for members while maintaining a distinct product experience for TF1’s brand.
Asked about a potential free ad-supported streaming television, or FAST, offering, Peters said a free option could make sense in some markets, but Netflix must be thoughtful about cannibalization of paid tiers and would need an effective scaled advertising business in the relevant country. He said Netflix has no near-term plans to launch such an offering.
Sarandos said Netflix is encouraged by early progress in vertical clips and video podcasts, saying podcasts are driving incremental viewing, particularly during daytime hours and on mobile. He cited partnerships with publishers including Condé Nast, Hearst and People, as well as programming involving creators and brands such as Martha Stewart, “The Breakfast Club,” the official “Bridgerton” podcast, Bill Simmons, Pete Davidson and Brian Williams.
Advertising, Pricing and Games Peters said Netflix manages its advertising business for total revenue growth and sees an opportunity to narrow the gap between average revenue per membership on the ad tier and the standard ad-free tier. He said Netflix has expanded demand sources, continued building its own ad technology stack, added products and measurement tools, and made it easier for advertisers to transact with the company.
On pricing, Peters said recent increases in markets including the U.S., Mexico and Spain have gone well and are consistent with prior price changes and expectations. He said Netflix evaluates whether it has delivered sufficient member value before raising prices.
Peters also discussed Netflix’s video game strategy, saying the gaming market represents about $150 billion in consumer spending excluding China and Russia and not including advertising revenue. He said cloud-based TV games are showing positive signs, with FIFA and Unhinged becoming Netflix’s two most successful cloud game debuts. Since scaling the cloud initiative last October, Peters said monthly active players for cloud games have increased 11 times.
AI, M&A and Capital Allocation Sarandos said generative AI is beginning to affect hundreds of Netflix productions, with workflows used in roughly 300 titles, especially in post-production. He said the tools are helping with complex shots and sequences, including crowd enhancements and historical battle scenes, while allowing some work to be completed faster and more efficiently.
Sarandos cited the documentary series “The American Experiment,” which he said includes 17 minutes of AI-enhanced footage produced twice as fast and at half the cost of prior options. He said any cost savings are likely to be reinvested into more content.
Asked about media consolidation and speculation around acquisitions, Sarandos said Netflix would not comment on market speculation and reiterated that the company is “primarily builders, not buyers.” Neumann said there is no change to Netflix’s capital allocation philosophy, which includes investing in the business, maintaining liquidity and a healthy balance sheet, and returning excess cash through share repurchases.
Neumann said Netflix repurchased $4.7 billion of shares in the second quarter, its largest quarterly repurchase in company history, and still has about $27 billion of capacity remaining under its authorizations.
About Netflix (NASDAQ:NFLX)Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.
The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Netflix odmítá velké akvizice a říká, že je „primárně stavitel, ne kupující“. Firma zároveň uvedla, že nemá žádné krátkodobé plány na spuštění FAST kanálů.
Netflix Co-CEOs Ted Sarandos and Greg Peters used the company’s second-quarter earnings interview to try to clear the air regarding prospects for M&A, strategic partnerships and FAST channels.
Responding to a question about Lionsgate or NBCUniversal, both considered prime suspects in the current wave of consolidation, Sarandos told Wall Street analysts he wanted to remind them of the company’s “core philosophy.” Netflix has “multiple ways to achieve our goals,” he added, among them “producing, licensing, partnering. And we’re constantly seeking ways to allocate our resources to the most attractive options.”
Repeating the same mantra that Peters offered up last fall as reports swirled about a potential run at Warner Bros. Discovery, Sarandos said, “We’re primarily builders, not buyers. That remains the case today. So, others will speculate about our intentions because they have their own reasons for that. But our track record is clear that we have a very high bar to do any big M&A.”
The remarks came after the company reported mixed second-quarter results and predicted a slight slowdown in growth in the third quarter. The numbers and projections seemed to only add to existing skepticism on Wall Street, sending Netflix shares down nearly 9% in after-hours trading. The stock has fallen more than 40% over the past year, and did not rebound after Netflix abandoned its bid for WBD and ceded the prize to Paramount (collecting a $2.8 breakup fee in the process). Questions have lingered since the merger battle, chiefly about why Netflix felt it needed to attempt by far the priciest M&A deal in its history and also whether it would feel compelled to explore other deals in the current climate of consolidation.
Peters, who steered the company’s milestone partnership with French broadcaster TF1, was asked about early takeaways from the venture and whether it might consider similar arrangements with other partners. There have been reports, for example, about NBCU streamer Peacock potentially looking to forge a partnership with Netflix. The company doesn’t do many bundles, though it is part of Comcast’s Xfinity StreamSaver package.
“Since the very beginning when we launched our streaming service, we’ve always sought to expand the entertainment offering,” Peters said. “Our members consistently tell us that they want more from us. We see that in the usage behavior. We see it any kind of testing or modeling we do around the space. And I would say that fulfilling on that customer desire for more has really been the driver for growth for our business for the last two decades. This partnership with TF1 is yet just another approach to expanding that offering.”
With a global footprint of 330 million households, he added, “We believe that we can help other producers, other services maximize the value and the relevance of the content that they invest in by finding those bigger audiences. And we have many, many examples of this effect, including now, in this new model with TF1.”
Given the TF1 integration only took effect last month in France, “it’s early,” Peters said. “There’s a bunch that we’ll learn through this process, but we are pleased with the performance we are seeing. … The early results from how members are reacting, how they’re interacting are very promising.”
While no follow-on agreements are ready to announce, Peters added, “if we see additional deals that similarly serve our members, that work for our partner, that work for us, we’ll certainly consider them.”
FAST channels, which have become a multi-billion-dollar category explored by virtually every rival streamer, remain uncharted territory for Netflix. Numerous press reports in recent months have speculated that the company could license third-party programming or use its existing library to launch FAST channels, which could potentially boost advertising revenue and subscriber levels.
“Maintaining and increasing accessibility, especially as we expand our content offering around the world, add new customer segments, that’s a critical focus and goal for us,” Peters said. “Optimizing long-term revenue is the other big goal. A free offering could make sense in some markets, but we have to be thoughtful about cannibalization of pay tiers. We’ve got to ensure that we’ve got the right offering, the right differentiation, differentiation of that offering.”
Peters added that “an effective, scaled ads business in any candidate country for such an offering is clearly an important enabling factor to make those economics work.” Given that Netflix only recently expanded its ad tier beyond its initial 12-territory footprint, it would need time to continue maturing.
“That’s all to say that free is something that we’re gonna continue to consider, but we have no near term plans to launch something,” Peters said.
Netflix čeká v roce 2026 růst výdajů na obsah zhruba o 10 % na asi 20 miliard USD. Generativní AI už použil v asi 300 titulech a zrychluje i zlevňuje postprodukci.
Streaming giant Netflix anticipates content spending (of about $20 billion) will be up around 10% in 2026, accelerating from 8% increases over the last five years but below the 14% the company averaged over the past decade. Live, now a focus, will be about 5% of total.
The higher outlay comes even as generative AI lowers costs, allowing the streamer to make “higher quality output more quickly and efficiently,” said co-CEO Ted Sarandos in a video call after quarterly earnings Thursday. He said Gen AI workflows have been used in roughly 300 Netflix titles, concentrated in post-production.
“We’re leveraging Gen AI for really complicated shots and sequences… enhancing crowds, or historical battle scenes, those kind of things,” he added. “And keep in mind that that in many of the cases productions would have left out those key shots because they just wouldn’t have been able to afford them. So they’re saved by availability and access to these Gen AI tools.”
AI use cases “are scaling faster and faster,” he said. Documentary series The American Experiment features 17 minutes of AI-enhanced footage, which was “produced twice as fast and at half the cost of previous options.”
Cost savings will likely be reinvested in more content on the service, which fuels engagement and the “whole revenue, profit flywheel.”
The comments followed lackluster second quarter financials with execs on the defensive as analysts grilled the company on what Wall Street perceives as a bit of a slump.
Live was a big topic as the streamer continues to ramp up its slate. Sarandos lauded live programming for driving subscriber acquisitions, accelerating ad revenue, fueling conversation and helping launch new shows. It’s been expanding its live sports lineup. He also called out The Roast of Kevin Hart and the MLB Home Run Derby, which was followed by an exclusive Hot Ones special (via a partnership with Sean Evans) shot at a baseball stadium with guest Will Ferrell, whose new series The Hawk just debuted on Netflix.
It’s “a cool example of the intersection between our core series, our expansion to creator content … plus live sports,” Sarandos said.
He also touted new vertical video clips, podcasts and content deals with publishers including Condé Nast, Hearst and People that will bring more lifestyle programming, saying, “Over the last 15 years, the definition of TV has broadened and our definition has changed along with it.”
Netflix uvedl, že sledovanost v 1. pololetí 2026 vzrostla o 2 % oproti 1,5 % v roce 2025. Zároveň ale od příštího roku bude report o sledovanosti zveřejňovat jen jednou ročně.
LOS ANGELES, CALIFORNIA - DECEMBER 05: An aerial view of the Netflix logo displayed at Netflix studios, with the Hollywood sign in the distance, on December 5, 2025 in Los Angeles, California. Netflix and Warner Bros. Discovery, Inc. have announced an $82.7 billion deal for Netflix to acquire Warner Bros. film and TV studios, HBO Max, and HBO. (Photo by Mario Tama/Getty Images)
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Netflix earnings numbers are always highlighly anticipated by media industry analysts and investors, given its size and influence in the streaming television business.
But this Q2 2026 earnings report was especially important because it came at the end of a couple of weeks of bad press, including a discussion about whether or not audience engagement numbers are dropping at the streamer.
And when the company released its 8-K form on Thursday, ahead of a conference call discussing the numbers by Netflix executives, the earnings numbers had a lot of things to worry about if you are an investor in the company.
If reading the 8-K was a drinking game in which you did a shot every time the document mentioned “engagement,” you’d be drunk before you got halfway through the 20-page document.
Netflix wants you to know that despite the press reports, their subscriber engagement numbers are just peachy:
We’re delivering increasing value to our members; engagement is healthy, reflecting the quality, quantity, and variety of our offering...View hours grew +2% in H1’26 vs. +1.5% growth in 2025, despite the competitive impact of the Winter Olympics and the World Cup this year.
Netflix is also arguing that while engagement numbers are important, there are other metrics that are as or more important when it comes to judging the overall success of the company:
We’ve used “engagement” as a shorthand for the value we deliver members. But, as we’ve developed an increasingly sophisticated understanding of how consumers ascribe value to our service, we know not all hours are equal. Time spent is just one aspect of strong engagement - quality and variety also matter. The key is to improve across all of those dimensions: quality, variety, and quantity.
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I’m not convinced that the argument “sure, engagement is an issue, but have a lot of titles people like” is a winning approach. Especially at the same time in which the streamer announced that next year, it will release the “What We Watched” report on an annual basis only. That report tracks viewing numbers and engagement on Netflix.
There were some interesting data points mentioned in the 8-K, although there wasn’t much provided in the way of context:
For instance, approximately half of our viewing occurs in the evening, but our recently launched video podcasts over-index on viewing during the day and on mobile devices, an indicator that this engagement is incremental.
Presumably, the other half of Netflix’s viewing occurs in the daytime hours. And what exactly does “over-index” mean when discussing am initiative which is still being rolled out?
Also, this video podcasts initiative has been partially limited to more mature markets such as North America, the UK, Europe and Australia. So how do engagement numbers in the territories with podcasts compare to those places where subscribers don’t have access? What do the financials for the video podcast deals look like? How long do the deals last?
But let’s not forget engagement:
Overall, our engagement remains healthy and as with all things we do, we’re working hard to improve every day.
And in fact, during a call company executives held with analysts and reporters after the 8-K was released, Co-CEO Ted Sarandos argued that engagement issues were “very common” in the industry (something I wrote about earlier in the week) and he also said that Netflix’s engagement numbers have recently improved somewhat:
“We are not seeing any material change in our second season viewing compared to season ones, our second seasons are performing well within our bands of expectation. Very often we see drop off from season one to season two. It’s very common in the industry, but it’s even more so with us because we launch our shows so big. When we look across the entire portfolio, across all the regions, all the content categories, our season two fall off is actually slightly improved this year relative to last year. Now, of course, you can pick any five data points to tell any story you want, but I’m going to repeat this: our season two fall off is actually slightly improved this year relative to last year.”
As for live events, the news is mixed for Netflix. Company executives noted that live events accounted for six of the top 10 new member sign-up days over the past five years. Which makes sense given that in mature markets, most likely subscribers have already joined. So live events provides a unique entry point for more reluctant subscribers.
Still, Netflix noted that while live programming accounts for more than 5% of its content spending, it makes up only about 1% of viewing hours.
However, the biggest challenge for investors and analysts is that the decision by Netflix to report engagement numbers less frequently only adds to the list of basic financial and strategic metrics that aren’t being reported anymore by the company. Or other companies in the streaming sector, to be fair.
As I wrote about in my Too Much TV newsletter after Netflix’s Q1 2026 report, it’s almost impossible to determine the success or failure of strategy at the company given the lack of details that would be reported by companies in other industries.
While Netflix likes to focus on revenue, it’s more important to be able to figure out where that revenue comes from and what a company has to do in order to generate it. And the standard across most industries is what is called the CLV - customer lifetime value. Which is the average amount of revenue each new and current customer is expected to generate over the life of their subscription.
Which means that you calculate the CLV by average revenue per account, times the gross margin, divided by the average subscriber churn rate.
And we don’t have any of those numbers. The scant top-line information Netflix provides is broken down by territory. And that means countries with higher ARPAs are combined with countries with much lower ARPAs and then averaged across the territory.
There is no way to know what strategies are successful or where weaknesses might be bubbling up.
I have been covering Netflix since it was a one-DVD warehouse in the SF Bay area. I have been supportive of a lot of the decisions made by the company over the years. But it is uniquely frustrating to cover a company what ends up making me feel as if I’m trying to cover the decisions of the Wizard Of Oz while he’s hiding behind billows of smoke and a giant curtain.
Netflix ve 2. čtvrtletí zvýšil tržby na 12,56 miliardy USD a čistý zisk na 3,4 miliardy USD, ale výhled na 3. čtvrtletí zklamal. EPS 0,80 mírně překonal odhad 0,79.
Live Coverage Updates appear automatically as they are published.
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This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of Netflix’s Q2 earnings.
Simply stay on this page, and new updates will appear below automatically. We expect Netflix to release earnings shortly after 4:05 p.m. ET.
1 minute ago
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That wraps up our initial coverage of Netflix’s Q2 results. Thank you for stopping by!
4 minutes ago
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Netflix continues to grow, with second-quarter revenue reaching $12.56 billion, net income totaling $3.4 billion, and EPS of $0.80 narrowly beating the $0.79 estimate. The company also expects advertising revenue to roughly double to $3 billion in 2026.
The problem was guidance. Netflix expects third-quarter revenue of $12.86 billion and EPS of $0.82, below estimates of $13.01 billion and $0.84, respectively.
For a stock carrying a premium valuation, continued growth is not enough when Wall Street expects even more.
The sell-off now raises the question for investors: Is Netflix undergoing a healthy valuation reset, or is the pullback creating a long-term buying opportunity?
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Overall Grade: B-. Netflix (NASDAQ:NFLX | NFLX Price Prediction) beat EPS but missed on revenue, free cash flow, and Q3 guidance, muting the rebound narrative built up during earnings week.
Category Grade Notes Revenue Performance C+ Revenue of $12.56B narrowly missed the $12.58B estimate despite 13.37% YoY growth. Earnings Beat/Miss B EPS of $0.80 topped the $0.7883 consensus by 1.48%. Guidance Quality C- FY narrowed to $51.0B-$51.4B; Q3 revenue of $12.86B came in light. Margin Trends B+ Q2 operating margin of 33.4% ran slightly ahead of internal targets. Cash Flow D Free cash flow of $1.53B fell 32.73% YoY on higher cash taxes. Management Confidence A- New $25B buyback authorization; $4.7B repurchased in Q2. Resilient top-line growth and strong margins collide with softer forward metrics.
The aggressive buyback signals conviction, while FCF pressure gives bears ammunition heading into the 4:45 PM ET call.
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Netflix still expects ad revenue to roughly double year over year to about $3 billion in 2026, providing another growth engine alongside pricing and global subscriber engagement.
Netflix reported more than 97 billion viewing hours during the first half, up 2% year over year.
Regional growth was broad-based, led by a 21% revenue increase in Latin America, followed by 16% growth in Asia-Pacific, 14% in Europe, the Middle East and Africa, and 10% in the United States and Canada.
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Netflix’s second-quarter revenue of $12.56 billion narrowly missed estimates, while free cash flow fell 33% to $1.53 billion, well below the $2.72 billion expected.
Netflix attributed the cash-flow pressure to higher tax payments, partly related to the Warner Bros. Discovery termination fee.
The company’s third-quarter outlook also missed across the board. Netflix expects revenue of $12.86 billion, EPS of $0.82, and a 33.2% operating margin, all below Wall Street’s forecasts.
Its full-year outlook calls for approximately $12.5 billion in free cash flow and a 31.5% operating margin, compared with estimates of $13.09 billion and 31.7%, respectively.
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Netflix just reported Q2 earnings, with shares initially up 2% following the report. Here are the key numbers:
Revenue: $12.56 billion vs. $12.58 billion expected EPS: $0.80 vs. $0.79 expected Quick Read:
Netflix delivered a small EPS beat, although revenue fell slightly short of Wall Street’s expectations.
Revenue still increased 13% year over year, while EPS rose 11%, signaling that the company’s underlying growth remains healthy.
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Netflix (NASDAQ:NFLX) reports Q2 earnings tonight at 4:05 PM ET, with shares at $73.72 and down 21.42% YTD.
Bull Case Ad revenue tracking to roughly double to about $3 billion in 2026, with the advertiser base up over 70% year over year. Reaffirmed FY operating margin of 31.5% on 12% to 14% revenue growth. Polymarket now assigns a 59.5% beat probability, and July 17 call volume outpaces puts 2.46:1. Bear Case Q1 EPS missed by -8.55% even with the Warner Bros. windfall. Content amortization peaks in Q2, threatening margins. Misses have averaged a -9.89% day-of drop, and insiders are net sellers across 110 recent transactions. Valuation remains full at a 24 P/E. 1 hour ago
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With shares at $73.72 and down 21.42% YTD, Netflix’s Q2 earnings call at 4:45 PM ET tonight will help to set the tone for the back half of the year.
Top Analyst Questions: Is ad revenue on track to reach the $3 billion 2026 target? How is capital being deployed post-Warner Bros., with $6.8 billion in buyback authorization remaining? Has content amortization truly peaked? What are early Netflix Playground and vertical-feed engagement metrics? Any update on the Brazilian ~$700M tax dispute? Key Topics: Free-trial reintroduction, Spain price hike, Mercado Libre bundle, InterPositive GenAI integration.
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Buzzwords: “incrementality,” “conversational discovery,” “operating leverage,” “engagement per member.”
Red Flags: Guidance below the 32%-34% margin consensus, softer H2 ad ramp, or hedged language on Lionsgate M&A speculation.
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With Netflix (NASDAQ:NFLX) set to report after the close, the Q1 setup remains the single most important frame for interpreting tonight’s numbers.
Here are 3 of the most important items from the April call to keep in mind ahead of tonight’s Q2 earnings:
Last Quarter’s Top 3 Takeaways: Capital return posture flipped back to normal. After walking away from the Warner Bros. deal, Netflix booked a $2.80 billion termination fee and resumed buybacks, repurchasing 13.5 million shares for $1.3 billion with $6.8 billion remaining. With shares now near $74.26, pace-of-buyback commentary matters more than usual. The ad tier inflected faster than the Street modeled. Ad-supported plans drove over 60% of sign-ups in ads countries, the advertiser base grew over 70% year over year to more than 4 thousand advertisers, and management reiterated the $3 billion ad revenue target. Any wobble tonight would dent the core bull thesis. Q2 is the margin trough, by design. Content amortization was flagged to peak in Q2 before decelerating to mid-to-high single digits in the back half, with the Q2 operating margin guide set at 32.6% on revenue of roughly $12.574 billion. FCF guidance was also raised to ~$12.5 billion from $11 billion, so any print above the 32.6% line would signal Q1’s confidence was, if anything, understated. Prediction markets currently assign a 60.5% probability of a miss, with 66.5% clustering around a 32%-34% operating margin outcome.
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Netflix (NASDAQ: NFLX) heads into tonight’s earnings report with Wall Street and prediction markets telling two very different stories.
The company is targeting roughly $12.57 billion in second-quarter revenue and a 32.6% operating margin, even as content amortization is expected to peak during the quarter.
Advertising remains the clearest potential catalyst, with ad revenue reportedly on track to double to approximately $3 billion in 2026.
Wall Street analysts maintain an average price target of $112.17, implying 51.5% upside. However, prediction markets assign Netflix a 60.5% probability of missing expectations, with $70 emerging as the most likely post-earnings share price.
A clean beat on advertising revenue and operating margin would revive Netflix’s long-term compounding narrative, but weakness in either metric would strengthen the bear case.
Netflix is also looking to overcome concerns that audiences for viral shows can decline 30% to 70% between seasons.
Netflix (NASDAQ:NFLX) reports Q2 earnings tonight at 4:05 PM ET, with the earnings call scheduled for 4:45 PM ET. The report lands after a Q1 EPS miss and a 41.54% one-year decline, leading investors to hope for a re-rate on margin durability and ad-tier scale.
A Valuation Reset for Netflix Stock Q1 2026 delivered revenue of $12.25 billion, up 16.19% YoY and beating consensus by 0.63%, while EPS of $1.23 missed the $1.345 estimate by 8.55%.
Management reaffirmed FY 2026 revenue guidance of $50.7B to $51.7B and lifted free cash flow to ~$12.5B. The ad-supported tier drove over 60% of Q1 sign-ups in ad markets, with advertisers up 70% YoY to over 4,000 clients.
Consensus Estimates Metric Q2 2026 Guide/Est YoY Change FY 2026 Guidance Revenue $12.574B +13% $50.7B-$51.7B Operating Margin 32.6% expansion 31.5% EPS (Est) $0.79 n/a n/a The Q2 revenue target implies 13% YoY growth (12% F/X neutral). The 32.6% margin projection exceeds the FY 31.5% target because Q2 is the peak amortization quarter, followed by expected deceleration to mid-to-high single digits in H2. Polymarket assigns a 66.5% probability to the company’s margins landing in the 32%-34% band.
Ad Scale, Amortization Peak, and Post-Warner Positioning With Netflix’s Q2 earnings tonight, ad revenue trajectory might be the single biggest swing factor. I’ll be watching whether advertiser count extended past the 4,000 client mark and how new incrementality tools are landing with buyers.
Content amortization is set to peak this quarter before decelerating. Any slippage below 32% might challenge the full-year 31.5% guidance.
Pricing power warrants attention after recent price adjustments in Spain. Commentary on member response and churn will inform whether North America and EMEA can sustain price-led ARPU growth.
The company did not acquire Warner Bros. Discovery, so the termination fee resumed the $6.8B buyback authorization, and 13.5M shares were retired for $1.3B in Q1. I’ll focus on content M&A appetite and whether GenAI investments (the InterPositive acquisition) reshape production economics.
Finally, live events and gaming. The Tyson Fury vs Anthony Joshua fight, Netflix Playground, and Japan’s World Baseball Classic success are new engagement vectors. Management tone on monetization pathways matters.
Earnings History Quarter EPS Surprise 1-Day Move 7-Day Move 30-Day Move Q1 2026 -8.55% -9.72% -5.00% -8.20% Q4 2025 +1.43% -0.84% -1.93% -9.84% Q3 2025 -15.79% -10.07% -1.43% -6.56% Q2 2025 +1.89% -5.10% -2.38% +0.41% On average, shares moved -2.69% seven days after earnings over the past year.
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Item 1 of 2 A drone view shows Netflix logos on buildings in the Hollywood neighborhood in Los Angeles, California, U.S., January 20, 2026. REUTERS/Daniel Cole
[1/2]A drone view shows Netflix logos on buildings in the Hollywood neighborhood in Los Angeles, California, U.S., January 20, 2026. REUTERS/Daniel Cole Purchase Licensing Rights, opens new tab
SummaryCompaniesNetflix forecast third-quarter revenue of $12.86 billion and diluted EPS of 82 centsShares drop nearly 8% in after-hours tradingIt will cut viewing-hours reports to once yearly starting in January 2027LOS ANGELES, July 16 (Reuters) - Netflix (NFLX.O), opens new tab offered third-quarter revenue and earnings projections on Thursday that hovered below Wall Street targets and said it would reduce the amount of information it discloses on viewing hours as the streaming video pioneer seeks new avenues of growth in a competitive media landscape.
Shares of Netflix fell nearly 8% in after-hours trading to $68.45.
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The company said it expected $12.86 billion in revenue from July through September and diluted earnings per share of 82 cents. Analysts had forecast $13 billion in revenue and diluted EPS of 84 cents, according to LSEG.
Third-quarter projections "appear to reflect a combination of management caution and a naturally maturing growth profile, rather than any sudden deterioration in the business," PP Foresight analyst Paolo Pescatore said. He added that they would "reinforce the view that Netflix remains strong but is entering a steadier phase of growth with considerably less room for error given the always-high expectations."
Netflix said it would cut its biannual release of a viewing-hours report to once a year starting in January 2027 "to keep the focus on our primary financial metrics — revenue and operating profit." It stopped publishing quarterly subscriber numbers in 2025.
For the just-ended quarter, Netflix revenue and EPS were roughly in line with analyst estimates. Earnings per share came in at 80 cents for the three-month period, which featured hits including crime drama "I Will Find You" and animated feature "Swapped." Revenue totaled $12.56 billion.
"Our financial performance remains solid and we're on track to meet our objectives for the year," the company said in its quarterly letter to shareholders.
COMPETITION INTENSIFIESNetflix is facing competition from all corners of the entertainment industry, from traditional media companies such as Walt Disney (DIS.N), opens new tab to YouTube, a growing presence in living rooms, and mobile viewing on apps such as TikTok.
Prior to the earnings report, the streaming giant had shed over a fifth of its value as investors worried about how the company would boost revenue and gain new customers. In April, Netflix said it had more than 325 million paying members and still had room to increase that number.
The company is building an advertising business and offering video games, two initiatives still in the early stages. It repeated an earlier forecast that ad revenue would reach $3 billion by the end of the year. The company is counting on its growing number of live events, including an expanded NFL slate, to draw more advertising dollars.
Netflix said engagement, or the amount of time people spend watching the service, was "healthy." Viewing hours grew by 2% in the first half of the year, compared with 1.5% a year ago.
It said it aimed to stay ahead of the competition in part by using technology to improve all aspects of its business. Use of generative artificial intelligence by producers is "scaling quickly" and has been used in about 300 titles, mostly in post-production, the company said.
Reporting by Lisa Richwine in Los Angeles and Ed Lee in New York; Editing by Sayantani Ghosh and Matthew Lewis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Netflix (NASDAQ:NFLX | NFLX Price Prediction) is becoming a media conglomerate. A cascade of moves in 2026 across sports, gaming, retail, advertising, podcasts, and mergers looks less like adjacent experiments and more like the blueprint of a media conglomerate. The question for Netflix shareholders is whether this sprawl is smart reinvention or a distraction the market is punishing.
The Case That Netflix Is Becoming a Conglomerate Start with live sports. Netflix has secured exclusive global streaming rights to the MLB Home Run Derby, Opening Night, and the Field of Dreams Game in a roughly three-year, $50 million per year deal, its first major live sports broadcast package. That follows the World Baseball Classic in Japan (47 games), which became the most-watched Netflix program ever in that country, plus the Canelo vs. Crawford bout, which drew more than 41 million viewers.
The expansion extends beyond sports. Netflix has opened Netflix Houses in Dallas and King of Prussia, PA; launched the Netflix Playground standalone kids gaming app across six countries; rolled out video podcasts with partners like Spotify/The Ringer, iHeartMedia, and Barstool Sports; and poured roughly $1 billion into a Fort Monmouth, N.J., production hub with 12 new soundstages. The advertising arm alone grew more than 2.5x to over $1.5 billion in 2025 and is expected to reach about $3 billion in 2026.
Then there’s M&A. Netflix walked away from a Warner Bros. deal, collecting a $2.80 billion termination fee that helped push Q1 2026 net income to $5.28 billion. Reports now put early-stage talks around Letterboxd at roughly $250 million, with Netflix’s name also circling Lionsgate Studios, valued near $3.86 billion. Both should be treated as rumored rather than confirmed.
Reinvention or Costly Sprawl? The market is skeptical. Shares are down 21.6% year to date and 41.1% over the past year. Reddit’s most upvoted thread of the week framed it plainly: “Netflix is down 42% from its high and trading cheaper than the S&P 500, the July 16 earnings are going to be fascinating.” Prediction markets assign a 75.5% probability of a Q2 earnings beat, yet 72.5% odds that the stock closes down on July 16. Insider activity has leaned toward selling.
Still, the fundamentals underpinning the strategy are formidable: a $309.7 billion market cap, 48.5% ROE, and 29.7% operating margin, on a P/E near 24. (Investors weighing whether streaming’s champion belongs in the same conversation as AI-boom names may want to keep 24/7 Wall St.’s 7 Stocks Powering the AI Boom report on the radar for context on where growth capital is flowing.)
What to Watch Judge the conglomerate thesis on four signals: ad revenue tracking toward the $3 billion 2026 target, operating margin holding in the 32% to 34% band the market expects, engagement trends after price hikes, and whether free trial tests translate into net subscriber additions. Today’s earnings report is the first real test.
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Netflix podle The Wall Street Journal zvažuje přidání živých kanálů a balíčků s dalšími streamovacími službami, aby zvýšil angažovanost před zveřejněním výsledků za 2. čtvrtletí 16. července. Načasování vyvolává obavy z nevýrazných výsledků.
On July 9, The Wall Street Journal reported that Netflix (NFLX +0.11%) executives have been discussing adding live channels to its service. According to the article, programs, shows, and films from certain genres could be continuously streamed.
That news, coming just ahead of Netflix's second-quarter report on July 16, could be a warning flag to expect disappointing or underwhelming results.
Image source: The Motley Fool.
Keeping subscribers more engaged Subscriber engagement (the amount of time people spend watching shows and movies on the platform, and how often they finish them) was a talking point at the company's annual business review in the spring, according to the article. Since then, however, the topic has reportedly come up more frequently.
To address that issue, executives have considered launching the live channels mentioned earlier and creating a bundle with other streaming services, according to The Wall Street Journal.
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Having a game plan ready The idea that Netflix is exploring new options to keep subscribers engaged should not be viewed as a negative. In a competitive space, it will need to continuously evaluate its current business plan, considering what else it could offer or what it may need to pivot away from. But the timing of this news could foreshadow a disappointing quarter.
The talking points for adding live programming or bundles could be proactive measures to address any underwhelming or weak stats in the second-quarter report.
The outlook for Netflix To be fair, Netflix may still report a great quarter and begin to reverse the downward trend the stock has been on in recent months.
The Wall Street Journal's reporting about its live programming plans could turn out to be an early preview of a new strategy at the streaming giant. But again, if viewers are spending less time watching its shows and movies and aren't finishing them at the rates they used to, that points to an issue brewing in terms of its ability to hold onto its subscribers.
I still like Netflix's potential as a long-term investment, considering its opportunities to grow revenue through its gaming division, video podcasting, and its entertainment complex concept, Netflix House. But the Q2 report may not offer much to help reignite investor enthusiasm in the short term.
Netflix čeká na čtvrteční výsledky za 2. čtvrtletí, přičemž Wall Street sleduje hlavně růst engagementu a reklamy. Konsensus čeká tržby 12,58 miliardy USD a EPS 79 centů.
Netflix is in regrouping mode heading into its second-quarter earnings reveal – a very familiar place for the company.
The streaming giant, which will report financials Thursday afternoon after the close of trading, has already signaled that the quarter is unlikely to be a barnburner. That was the takeaway of many Wall Streeters in April after the company declined to raise its full-year guidance.
Netflix have skidded to an 18-month low, down 40% over the past year and 21% in 2026 to date, as skepticism lingers about the company’s user engagement, competitive set and M&A aspirations.
“There’s a lot riding on Q2 as Netflix faces no shortage of near and longer-term questions – from Q2 engagement trends and potential revisions to 2026 margin guidance to the broader challenge of sustaining growth amid evolving consumer preferences and viewing behavior,” Bernstein analyst Laurent Yoon wrote in a note to clients.
Apart from Harlan Coben’s I Will Find You, there weren’t many no-doubt hits during the April-to-June quarter, and some viewership was also siphoned off in June by the World Cup. More disconcerting to investors was a report by Bloomberg that many series are experiencing increasingly steep dropoffs in viewership between their first and second seasons.
The company has taken steps already to shore up overall engagement, adding vertical video, podcasts and live sports to create a more comprehensive programming lineup. It is also reportedly considering more significant moves, like potentially expanding on the live broadcast partnership it formed in France with TF1 or possibly the addition of a free tier or even substantial M&A to bolster its IP library. Given lingering questions about the end of its merger agreement with Warner Bros., as well as recent reports the company is taking a look at acquiring Letterboxd, it is likely that execs will be asked yet again about potential deals.
John Blackledge of TD Cowen acknowledges the fretting over engagement trends as a major theme for investors, but he believes that angst ignores significant upside in the company’s growing ad business. “We expect the burgeoning ad tier to help drive member growth and support margin expansion over time as the biz scales,” he wrote in a note to clients, also pointing out that Netflix was the No. 1 choice of consumers Cowen’s surveyed about living room viewing.
Sean Diffley of Morgan Stanley, in a report headlined “We’ve Seen This Movie Before,” said the company has had a lot of experience with comebacks. “With many asking where shares could bottom, we would look to 2022 as the last major period of growing pains for Netflix that saw subs go negative for the first time in 10 years,” wrote. In the end, however, “We think it all comes back to pricing power, and our survey work suggests they still have the best perceived original content and the strongest breadth & depth, along with viewer intention.”
The rope-a-dope dynamics of past quarters, where the bar is set low and the company overdelivers and the stock jumps, could make a return on Thursday, according to BofA Securities analyst Jessica Reif Ehrlich. “Given the recent pullback in shares, we believe investor sentiment remains muted and a beat-and-raise quarter could go a long way in assuaging several of these investor concerns,” she wrote. “Conversely, should fundamentals indicate a further deceleration in trends, that would only amplify these bearish concerns and weigh on the multiple going forward.”
Consensus forecasts among Wall Street analysts are for revenue in the quarter of $12.58 billion and earnings per share of 79 cents. Both metrics are close to the company’s own internal projections.
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Netflix co-CEO Ted Sarandos and YouTube CEO Neal Mohan. Noam Galai/JP Yim/Getty Images. Can Netflix become YouTube before YouTube can become Netflix?
The two apps are starting to look a lot more alike as Netflix chases creator content, podcasts, and short-form video, and YouTube pitches itself as a destination for TV advertisers and Emmy-worthy shows. They are also both diving into live sports.
The top streamers are all trying to create a "super app," said Scott Purdy, a media sector leader at the consulting firm KPMG US.
"They're just trying to pick off the best things, whether that's creator-driven stuff, whether that's games, whether that's better customization around advertising, to create an ecosystem that you never have to leave," he said.
The pair is even dueling over awards shows — Netflix is streaming The Actor Awards (formerly the Screen Actors Guild Awards), while YouTube is set to host the Oscars beginning in 2029.
The battle for attention doesn't come cheap.
Netflix and YouTube are spending billions of dollars a year on content, either through production and licensing deals or advertising-revenue sharing, as they duke it out for the top spot in Nielsen's monthly ranking of US TV viewership.
As content becomes less differentiated, the companies that do a better job at customizing the viewing experience will have an edge, said Frank Albarella, a US media and telecommunications leader at KPMG US.
"What do you see when you fire up your homepage?" he said. "Are they doing a good job at pointing it to certain things? That's always important."
Price will matter too, he added.
Right now, that's a key difference between paid Netflix and free YouTube. (Though YouTube has a paid, ad-free version, and there are periodic rumblings in the analyst community that Netflix should launch a free tier.) There's also the fact that Netflix pays money up front for content, while YouTube splits ad revenue with creators.
These differences have led Netflix to own higher-budget, scripted TV, while YouTube dominates influencer content and the long tail.
Both have been signaling their desire to make inroads into each other's traditional turf, however — though the extent to which they'll be successful remains to be seen.
The streaming wars are now a head-to-head fightA decade ago, few would have guessed that Netflix and YouTube would be the final showdown in the streaming wars. Netflix's co-CEO Ted Sarandos said in 2013 that the company's goal was "to become HBO faster than HBO can become us."
Back then, Netflix didn't have an advertising business. Today, it knows its biggest task is to drive watch time. The company's North Star has shifted to "engagement," which it has called the "best proxy for customer satisfaction."
Sarandos told investors last year that the streamer is the best place for premium content "as defined by fans," not critics. It isn't HBO tastemakers that are driving the bulk of TV viewing. Many spend their time in social feeds, watching influencers bake bread or do trick shots on basketball courts. Just under half of Gen Z and millennial viewers consider watching social media videos to be the same as watching TV, according to a Deloitte report from last year.
To win, Netflix is looking to offer a mix of cable TV, TikTok, and YouTube-style fare. It's not alone. Other streamers seem to be realizing they need to offer more in their apps to compete. Disney and Paramount are exploring short-form video feeds and free tiers to expand their audiences and drive up engagement.
"These streaming platforms and the social platforms are moving towards the same center of gravity," Albarella said. "We call it a battle for audience attention or engagement, and almost like a new category called creator-driven television."
This month, Netflix said it's adding three to 20-minute videos from the likes of Bon Appétit, Variety, and Cosmopolitan — the type of short content that people binge-watch on YouTube. It's adding new videos from YouTube creators The Stokes Twins, Rhett and Link, the food influencer Meredith Hayden, and other social stars like Salish and Jordan Matter.
YouTube, meanwhile, is now letting creators organize their videos in TV-style series, offering seasons and episodes for viewers to burn through. The company said more users watch YouTube on television than on computers or phones, and it's pitching shows from top creators like Kareem Rahma to advertisers as TV buys.
Ultimately, all the media and social platforms have the same goal: to keep us watching.
"There's only so many hours in a day, and everyone is competing for amounts of attention," Purdy said. "They're all trying to figure out how to monetize that attention effectively."
The biggest question mark is the future of prestige scripted content. YouTube has traditionally struggled in this area, but if younger generations spend less time watching it, that might cease to be such an edge for Netflix.
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Akcie Netflixu jsou letos v roce 2026 zhruba o 30 % níže a asi o 45 % pod maximem, kterého dosáhly zhruba před rokem. Netflix je pod tlakem kvůli obavám z klesající sledovanosti diváků před výsledky za 2. čtvrtletí. Slabší engagement může brzdit zdražování i růst reklamních tržeb.
Shares of streaming giant Netflix (NFLX 0.39%) are down roughly 30% so far in 2026 and off 45% from the peak they touched about a year ago. That decline reflects investors' growing concerns over the durability of its competitive advantages in a crowded media landscape.
Since Netflix no longer publicly reports its subscriber growth numbers, investors will look for other ways to gauge the company's health when it reports second-quarter earnings on Thursday. As one of the leading streaming platforms, engagement is the foundation of its business model. Its ability to raise subscription prices and grow advertising revenue depends on the platform's ability to capture and hold a large share of its subscribers' viewing time.
Image source: Getty Images.
A shift in the attention economy Competition for screen time now comes from all corners of the media world, putting more pressure than ever on Netflix's core business of offering on-demand shows and movies. The alternatives have expanded beyond premium streamers to include everything from live streamers on Twitch to podcasts that consume hours of user time to short-form videos on TikTok to co-creator gaming platforms like Roblox.
This environment makes it harder to maintain audience attention. On the content front, a planned new series from the producers of Stranger Things was recently canceled, and some popular returning Netflix shows have reportedly drawn smaller audiences in their second seasons.
When the company reports this week, investors will be watching the trajectory of revenue growth and margin expansion. However, management's response to a recent Wall Street Journal article that reported on the company's internal concerns regarding member engagement will likely take center stage.
Pressure on pricing power and ad growth While Netflix remains profitable, a sustained decline in engagement would weigh on its ability to push through periodic price increases in the years ahead. It could also cap the growth of its ad-supported subscription tier.
The company's ad revenue is expected to double this year to roughly $3 billion, but that is still only about 6% of total sales. For the ad tier to become a more meaningful contributor, it needs a large and engaged audience.
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Management is exploring ways to counter the trend, including adding live channels and bundling other streaming services. These moves would be a significant shift for the company. The upcoming earnings call will be an important opportunity for management to address the engagement narrative and outline its content strategy.
Bryan White has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Roblox. The Motley Fool has a disclosure policy.
Bank of America před výsledky Netflixu potvrdila doporučení Buy a cílovou cenu 125 USD, i když akcie letos klesly zhruba o 20 %. Investoři sledují hlavně trendy zapojení uživatelů a výhled na druhé pololetí.
Netflix Inc (NASDAQ:NFLX, XETRA:NFC) remains well positioned for long-term growth despite a roughly 20% decline in its shares this year, according to Bank of America, which reiterated its ‘Buy’ rating and $125 price objective ahead of the company's second quarter earnings report due on Thursday.
The bank wrote that the stock's year-to-date decline reflects investor concerns over engagement trends, the potential impact of artificial intelligence on content creation, and heightened competition following recent media mergers and acquisitions. However, it argued that Netflix has successfully navigated similar periods of skepticism in the past.
Bank of America highlighted that subscriber growth slowed significantly in 2022, contributing to a share price decline of more than 50%, before the company responded with initiatives such as paid sharing and its ad-supported tier, which helped accelerate growth again. The analysts also noted that investor concerns over margin expansion in late 2023 were followed by another year of strong operational execution.
The firm wrote that Netflix's management has "consistently demonstrated an ability to adapt to changing market conditions, execute effectively and create long-term shareholder value."
Looking ahead to Q2 results, Bank of America expects largely in-line financial results, with investor attention likely to center on the company's outlook for the second half of the year, engagement trends, and management's commentary on acquisition appetite and broader strategic priorities.
The analysts noted that sentiment toward the stock remains subdued following its recent decline and suggested that stronger-than-expected results and raised guidance could ease investor concerns. Conversely, signs of further slowing in the business could reinforce bearish views and pressure the stock's valuation.
Bank of America also outlined risks cited by bearish investors, including slowing engagement, increased competition from platforms such as YouTube and short-form video services, the potential impact of AI on content creation, and uncertainty surrounding a more active approach to acquisitions compared with Netflix's historical strategy.
Despite those concerns, the bank maintained that Netflix has a significant runway for subscriber and advertising growth, supported by its global scale, expanding advertising business, and strong balance sheet, which it believes will continue to support shareholder returns over time.
Netflix vyhlíží čtvrtletní výsledky ve čtvrtek po zavření trhu; Wall Street čeká tržby 12,57 miliardy USD a zisk 0,79 USD na akcii. Akcie od splitu klesly o více než 30 %.
Netflix (NFLX - Free Report) ) has long been one of Wall Street's premier growth stories, transforming from a DVD-by-mail company into the world's leading subscription streaming platform.
However, despite continued revenue growth, expanding profitability, and healthy free cash flow, Netflix shares have struggled to build momentum ahead of its Q2 report, which is scheduled for Thursday, July 16, after the closing bell.
The upcoming release will give investors a fresh look at subscriber-related trends, advertising growth, operating margins, and management's outlook for the remainder of 2026. While Netflix remains fundamentally strong, expectations remain elevated, making its Q2 results particularly important.
Netflix’s Q2 ExpectationsWall Street expects Netflix to generate Q2 revenue of $12.57 billion, representing 13% year-over-year growth. On the bottom line, earnings are projected to come in at $0.79 per share, nearly a 10% increase from the prior-year period.
Beyond the headline numbers, investors will likely focus on several key themes:
Subscriber/revenue commentary across international marketsAdvertising-tier monetizationOperating margin expansionFree cash flow generationManagement's full-year guidanceNetflix has evolved into a highly profitable business rather than simply a subscriber-growth story. As a result, margin expansion and monetization initiatives have become increasingly important drivers of the investment thesis.
Management has also continued to invest in live programming, sports-adjacent content, gaming initiatives, and advertising capabilities as it seeks additional long-term growth avenues beyond traditional subscriptions.
Still, adding pressure to its Q2 report is that Netflix most recently missed Q1 EPS estimates and has fallen short of earnings expectations in two of its last four quarterly reports, with an average EPS surprise of -4.79%.
Image Source: Zacks Investment Research
NFLX Has Plummeted Since Its 2025 Stock SplitNetflix completed a 10-for-1 stock split on November 17, 2025, making shares more accessible to retail investors after an extraordinary multi-year rally. While stock splits don't change a company's underlying fundamentals, they often coincide with strong momentum and can help broaden investor participation.
However, that hasn't been the case so far for Netflix. Since the split, NFLX has fallen more than 30% and recently hit a 52-week low of $70 a share in late June.
With that in mind, Netflix's upcoming Q2 report could prove pivotal. Better-than-expected earnings, stronger guidance, or encouraging commentary surrounding its advertising business and long-term growth initiatives could hopefully help NFLX get its mojo back and reignite bullish momentum.
Image Source: Zacks Investment Research
Netflix’s Valuation is More Reasonable Although Netflix has historically commanded one of the richest earnings multiples among large-cap media companies, NFLX is now trading at a much more reasonable forward P/E ratio of 20X.
Netflix stock has moved closer to its Zacks Broadcast Radio and Television Industry average of 13X forward earnings, and is now offering a slight discount to the benchmark S&P 500.
What may also intrigue investors is that NFLX is trading at a 42% discount to its five-year median of 35X forward earnings and is well below a high of 65X during this period.
Image Source: Zacks Investment Research
Long-Term Fundamentals Still Look AttractiveAlthough short-term volatility around earnings is always possible, Netflix remains one of the highest-quality companies in the consumer discretionary sector.
Its expanding advertising platform, growing operating leverage, international opportunities, and robust content library provide multiple avenues for long-term growth. Combined with consistent free cash flow generation and a fortress-like balance sheet, Netflix remains well-positioned to compete effectively as streaming continues to evolve.
At the end of Q1, Netflix’s cash and equivalents had ballooned to over $12 billion, with the streaming giant having over $61 billion in total assets compared to around $30 billion in total liabilities.
Image Source: Zacks Investment Research
Furthermore, while Netflix no longer reports quarterly subscribers, it highlighted ongoing paid net additions and strong momentum in its ad-supported tier during Q1.
The company stated its $8.99 ad-supported plan accounted for more than 60% of new sign-ups in markets where the option is available. That momentum continued into the second quarter, with Netflix announcing at its May 2026 Upfront presentation that the ad-supported tier now reaches more than 250 million monthly active viewers worldwide, underscoring the growing scale of its advertising business.
Having already surpassed 325 million paid subscribers globally at the end of 2025, Netflix has maintained a commanding lead over streaming competitors despite increased competition from Disney (DIS - Free Report) ), Amazon (AMZN - Free Report) ), Warner Bros. Discovery (WBD - Free Report) ), and Paramount Skydance (PSKY - Free Report) .
This unmatched scale gives Netflix significant pricing power and provides a larger audience to monetize through its rapidly expanding advertising platform.
Bottom LineNetflix's Q2 report could provide the catalyst investors have been waiting for, particularly if management delivers stronger guidance, continued margin expansion, and encouraging commentary surrounding advertising and subscriber growth.
That said, Netflix stock currently lands a Zacks Rank #3 (Hold), suggesting investors may want to await management's post-earnings outlook and additional earnings estimate revisions before initiating or adding to existing positions.
There is never a good time for a stock to be on the losing end of an analyst downgrade or a sinking price target adjustment, but the worst possible scenario has to be just before the publicly traded company steps up with fresh financials. This happened on Monday, with Oppenheimer slashing its price target on Netflix (NFLX +1.48%) from $120 to $100. The leading premium streaming platform reports its second-quarter results on Thursday afternoon.
Wall Street pros aren't perfect. They are human, and not just because they have a tendency to aim lower on earnings projections more often than not. However, knocking down a price target instead of waiting for the actual numbers to come out three days later is intentional. Oppenheimer didn't want to enter earnings season with a higher price target. It might not be a big deal, but let's zoom in for a closer look.
Image source: Getty Images.
Be kind, rewind It's worth noting that Oppenheimer's senior internet analyst, Jason Helfstein, also lowered Netflix's price target three months ago. He slashed his price goal on the shares from $135 to $120 on April 17, the day after the platform's poorly received first-quarter release. It's worth noting that the adjustment occurred after the April report. The price target tweak is coming ahead of the performance report this time around.
Oppenheimer's April downward revision was attributed, in part, to the firm conceding that it had been too ambitious in modeling how a recent price hike could boost Netflix's performance. This week's markdown is slightly more optimistic, despite the price target receiving a $20 haircut.
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Oppenheimer's Helfstein argues that the stock's historically low earnings multiple is baking in the near-term pressures in advertising and consumers shifting to lower-priced subscription tiers. It still sees upside in Netflix stock, especially if it can address recent challenges. He is sticking with his firm's bullish outperform rating on the shares. Even at the new $100 price goal, that represents a healthy 36% of upside from where Netflix entered the new trading week.
Shares of Netflix have tumbled 40% over the past year, with the lion's share of that happening in the last three months. The stock is trading for just 20 times forward earnings, a historical bargain for a stock that has routinely commanded a premium given its sticky engagement, market dominance, and steady all-weather growth.
A major Wall Street analyst talking down a price target just days before a telltale quarterly update isn't a good look, but a closer look shows that it's just adapting to the new reality. As long as the revision still offers upside and a bullish stock rating -- and this checks off both boxes -- it's not as problematic as it might seem.
Netflix zveřejní výsledky za 2. čtvrtletí po uzavření trhu ve čtvrtek 16. července; analytici čekají zisk 79 centů na akcii a tržby 12,58 miliardy USD.
Netflix, Inc. (NASDAQ:NFLX) will release its second quarter earnings report after the closing bell on Thursday, July 16.
Analysts expect the Los Gatos, California-based company to report quarterly earnings of 79 cents per share, up from 72 cents per share in the year-ago period. The consensus estimate for Netflix’s quarterly revenue is $12.58 billion. It reported $11.08 billion last year, according to Benzinga Pro.
According to the Wall Street Journal, Netflix is exploring options to boost subscriber engagement.
Shares of Netflix fell 2.8% to close at $73.37 on Friday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying NFLX stock? Here’s what analysts think:
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Netflix potřebuje více hodin sledovanosti, aby podpořil reklamní byznys, který má letos zdvojnásobit tržby na zhruba 3 miliardy USD. V USA jeho podíl na sledovanosti klesl z 8,8 % v lednu na 7,9 % v dubnu.
On Thursday afternoon, Netflix will report second quarter earnings. Its next Engagement Report, covering the first half of 2026, matters more than the earnings print.
The reason is a scoreboard Netflix once dominated. YouTube captured 13.4% of all television viewing in the United States in April, according to Nielsen's Gauge. Netflix has slipped from 8.8% in January to 7.9% in April. The company that taught Wall Street to worship engagement is no longer winning at it.
That gap explains a run of announcements that has puzzled much of the industry. In recent weeks Netflix has signed the Stokes twins, YouTube creators with 160 million subscribers. It has brought over food creator Meredith Hayden and Sean Evans's Hot Ones, and struck partnerships with publishers including Condé Nast, Hearst and People Inc., for exactly the kind of short, inexpensive video those brands usually post to YouTube.
The prevailing read is that Netflix is having an identity crisis, chasing YouTube downmarket and diluting the most valuable brand in premium streaming. That read misses the mechanism. Netflix is not chasing YouTube's audience. It is chasing YouTube's ad load.
The Arithmetic Has No Slack In ItNetflix expects advertising revenue to double this year to roughly $3 billion, a target management reaffirmed in its first quarter shareholder letter and again at its May Upfront, where the company said Netflix with ads now reaches more than 250 million global monthly active viewers, up from 190 million only months earlier. That is a reach figure, based on members who watch at least 1 minute of ads on Netflix each month and Netflix's estimate of the number of people watching in each household, not a count of subscriptions. As I wrote in May, the burden is on Netflix to convert reach into impressions advertisers will pay a premium for.
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Advertising revenue is a simple chain. Revenue requires impressions. Impressions require time spent. And the viewing concentrated around Netflix's biggest titles is showing signs of strain. Bloomberg's Lucas Shaw found that second-season viewing fell more than 50% for Running Point and The Four Seasons, and more than 70% for Beef, comparing the first four weeks of each season using Netflix's own viewing data.
Meanwhile the cost of that slate keeps rising. Netflix has guided to content amortization growth of roughly 10% in 2026, weighted toward the first half of the year. Netflix is absorbing faster content amortization at the exact moment its advertising business needs more viewing hours.
Creator content, podcasts and magazine-brand clips offer one answer to that tension. They are cheap, they are abundant, and every additional hour of viewing is an hour that can carry commercials. This is not simply programming strategy. It is inventory manufacturing.
The Measurement WarWatch the language on Thursday as closely as the numbers. Expect a version of the argument that not all engagement is created equal, and that the passive scroll of a YouTube or an Instagram should count for less than intentional Netflix viewing. The groundwork is already laid: in the first quarter, management pointed to a member-quality metric at an all-time high rather than raw hours.
There is real irony here. That is the argument linear television networks made for two decades as their audiences leaked away, and Netflix built its empire dismantling it. When a company starts redefining the scoreboard, it is usually because the score has turned against it. Nielsen itself is recalibrating its methodology this year, so even the scoreboard is contested.
What To Watch Thursday Three things will tell the story. First, the next Engagement Report's total view hours against the first half of 2025, whether it lands Thursday or shortly after. Management said in April that hours were growing at a rate similar to last year. If the report leans on quality-weighted language instead of raw totals, that is a tell.
Second, the advertising commentary. Any hedging on the $3 billion figure changes the investment case, because ad growth is the narrative supporting a stock down roughly 40% from its 2025 high. The company guided to $12.57 billion in second quarter revenue, up 13.5%, on a 32.6% operating margin. Netflix beat its own first quarter forecast, but shares fell roughly 10% when that second quarter guidance came in below Wall Street expectations. This print carries more weight than usual.
Third, funnel language. A growing warehouse of low-cost video makes a free tier easier to imagine. Pluto TV proved the free-to-paid pipeline for Paramount+, and the market has already voted for ads: ad plans accounted for 78% of net additions at streaming services that offer them over the past nine quarters, according to Antenna. Netflix is building the shelf space to sell against, whether or not the gate ever opens fully.
The Cost Of More InventoryNone of this means the strategy is wrong. Netflix's churn was back to 2% by May 2025 after briefly rising following a price increase, according to Antenna, and its subscribers have proved unusually patient. Diversifying away from expensive originals could free capital for international programming and sports, categories Netflix increasingly uses to drive acquisition.
But there is a cost. Netflix has been called the Costco of streamers, premium in a curated, warehouse-scale way. Stocking the shelves with creator clips and magazine video moves it toward something closer to Walmart. Netflix is the only major streamer with no parent company to subsidize that transition. Amazon sells goods, Apple sells hardware, YouTube has Google. Netflix has only the subscription and the ad unit.
Thursday's earnings, and the Engagement Report that follows, will show whether the inventory strategy is producing the hours the ad business requires. The identity question can wait. The arithmetic cannot.
Netflix je podle Variety mezi uchazeči o koupi Letterboxd, rychle rostoucí filmové recenzní platformy s 30 miliony členů. Cena se má pohybovat kolem 250 milionů USD.
If Netflix (NFLX 2.76%) were a contestant on its popular Love Is Blind reality dating show, it wouldn't end with successfully exchanged vows at the altar. The world's leading premium streaming video service has loved and lost a lot lately, realizing that promising chatter with potential partners in the pod rarely pans out in the real world.
Netflix emerged with a firm commitment in the bidding war for Warner Bros. Discovery, only to be swept off its feet by rival Paramount Skydance offering a larger dowry. In the days following the Fox acquisition of Roku, there was a report that Netflix was outbid for the connected TV pioneer. The story was later updated to clarify that Netflix may or may not have been sniffing around, but it never submitted an offer. Rumors have swirled that Netflix might be interested in Lionsgate or any other storied content creator that may be on the block, but Netflix has either denied the courting or suffered silently in solitude. Netflix can't seem to make a love connection with potential acquisition targets. It also doesn't seem to be hitting it off with investors, given the stock's sharp slide in recent months. Help could be on the way, especially if the small ball game it seems to be playing starts to pay off.
Image source: Getty Images.
The road to perdition Netflix has delivered generational wealth to its longtime investors, a 600-bagger since going public 24 years ago. However, Netflix stock has been painful to own for more recent investors, down more than 40% over the past year.
The downticks aren't entirely due to Netflix's failure in recent whale-hunting expeditions. It has routinely delivered disappointing results or guidance, with shares trading lower in the weeks following each of its last four quarterly updates.
Netflix is going through a confidence crisis with investors, and that's been painfully clear whenever its name is tied to a potential acquisition target. The stock has declined after someone else walked away with a potential prize, but it's also taking a hit as a consolation prize when it falls short.
Netflix announces a deal for Warner Bros. Discovery? It gets hit. It gets outbid, meaning it collects a $2.8 billion buyout termination fee? It gets hit. It's damned if it says "I do" and it's damned if it says "I don't."
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The road to redemption Variety reports that Netflix is one of the parties in the running to acquire Letterboxd, a fast-growing film-review platform with a social-networking bent reaching 30 million members worldwide, a roughly 50% increase over the past year. Letterbox is reportedly looking for a price tag in the $250 million range.
It would be a good catch for Netflix, strengthening its ties with tens of millions of movie buffs. Netflix already has a strong global reach, with more than half of its 325 million users outside the U.S. market. Some may argue that a trendy reviews platform owned by a major streaming service could introduce bias, but it's not without precedent. Critic reviews hub Rotten Tomatoes was owned by Peacock-parent Comcast for years before its recent spinoff. Amazon continues to own the cast-and-crew database IMDb.
If successful -- and that's far from a lock with other players in contention, as we've learned before -- it would join Netflix's recent deal to acquire Radford Studio Center, a historic California film and television production studio. That deal is expected to close later this quarter.
A production facility enables Netflix to ramp up its content production. A film buff site enables Netflix to ramp up subscriber engagement. Neither deal will break the bank for Netflix. It might not move the needle, either, but Netflix is taking small steps to grow beyond its own organic efforts. Netflix doesn't need to find love by becoming a celebrity power couple. It just needs to focus on what has gotten it this far. Padding its empire with logical and cost-effective deals is just the cherry on top of a heart-shaped sundae that no one seems to be eating -- for now.
Rick Munarriz has positions in Comcast and Netflix. The Motley Fool has positions in and recommends Amazon, Netflix, Roku, and Warner Bros. Discovery. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.
Netflix bude 16. července ve výsledcích za 2. čtvrtletí 2026 dokazovat, zda má pod kontrolou náklady na obsah a jasnější akviziční strategii. Akcie jsou letos téměř 20 % v mínusu a za 12 měsíců zhruba 40 %.
Despite what the stock price has done this year, there's a lot to like about Netflix (NFLX 2.76%) as a long-term investment.
It has new revenue opportunities through video podcasting and gaming units, and its entertainment venue, Netflix House, is expanding from locations in Dallas and Philadelphia to Las Vegas in 2027.
For the rest of this year, however, it could still be a bumpy ride for investors, depending on what's reported on July 16 in Netflix's 2026 second-quarter earnings. That report will allow Netflix to show whether content costs are under control, what its acquisition strategy is, and whether the company can reassure shareholders enough to reverse recent stock price losses.
Image source: Getty Images.
Content costs When Netflix reported its first-quarter earnings in April, a few things stuck out that weighed on the stock price immediately after the report. But one of the biggest worries from the market seemed to be Netflix's content costs.
The management team warned that a large portion of content costs would be front-loaded at the start of the year, and that its content amortization rate would peak in the second quarter of 2026.
Netflix's upcoming report will show whether that expectation held true or if the cost of that content is continuing to rise.
What's next after Warner After Netflix walked away from a bidding war in February to acquire assets from Warner Bros. Discovery, investors initially cheered the move. That's because there were always questions about how much value Netflix could extract from Warner Bros., and finding out would have come at a hefty cost.
It didn't take long for Netflix to find another acquisition target. In March, the streaming giant acquired the filmmaking technology company founded by actor Ben Affleck, InterPositive, for a reported $600 million. More recently, in June, rumors surfaced that Netflix was interested in acquiring streaming software company Roku. However, Fox entered a definitive agreement to acquire Roku, and it seems unlikely Netflix would make a competitive bid.
Currently, there doesn't seem to be a unifying theme for the types of acquisitions Netflix is pursuing or may be interested in. More clarity from the management team on the acquisition strategy would help shareholders better understand the company's long-term goals.
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Slumping stock price The biggest reason Netflix has a lot to prove in its upcoming earnings report is because of its slumping stock price. As of this writing, not only are shares down nearly 20% so far in 2026, but the stock price is down around 40% over the last 12 months.
Starting a position before earnings could lead to short-term gains if the report is positive, but it could just as easily lead to fast losses if the report is mediocre or disappointing.
For long-term investors, this will serve more as a scorecard: Has Netflix found its footing, with progress to build on, or is the company still stuck in a slump and facing more uncertainty ahead?
Netflix v 1. čtvrtletí zvýšil tržby na 12,25 miliardy USD a čistý zisk na 5,28 miliardy USD. Firma zároveň potvrdila celoroční výhled tržeb v rozmezí 50,7 až 51,7 miliardy USD.
Netflix (NASDAQ:NFLX | NFLX Price Prediction) closed July 2, 2026 with a market capitalization of roughly $327 billion, a figure that would have seemed unreachable to skeptics who watched the stock slide 39.57% over the past year. The valuation reflects 4,210,799,000 shares outstanding at a closing price of $77.65, a level the crowd on Polymarket now assigns a 0.79 probability of ending the month at the $80 level. This is a reported figure, but one that has some investors growing concerned.
What It Means A market cap of that scale after a year like this one requires a business that keeps compounding through the noise. Netflix delivered such performance.
In fact, the company’s Q1 2026 revenue landed at $12.25 billion, up 16% year over year and beating consensus of $12.17 billion. Net income reached $5.28 billion, growing 82.8% against the year-ago quarter, boosted by a $2.80 billion termination fee tied to the abandoned Warner Bros. deal. Strip that one-time item out and operating income still expanded 18.23% to $3.96 billion. Additionally, the company’s free cash flow of $5.09 billion grew 91.44%, while Netflix’s return on equity sits at 48.5%.
Growth is spread across the map. North America grew 14%, EMEA 17%, Latin America 19%, and Asia Pacific 20%, with Japan the largest single contributor to member growth after the World Baseball Classic drew 31.4 million viewers.
Market Reaction Shares closed at $77.65 on July 2, 2026, up 4.66% on the day and 9.52% over the past week (from $70.90 on June 25 to $77.65 on July 2). Over ten years, the stock is up 703.25%.
Bull Case The bull case for Netflix rests on the gap between what the business is producing and what the stock price has been telling investors. Full-year 2026 revenue guidance was reaffirmed at $50.7 billion to $51.7 billion, or 12% to 14% growth. On the positive side, Netflix’s operating margin is targeted at 31.5%, up from 29.5% in 2025, and free cash flow guidance was raised to approximately $12.5 billion from $11 billion.
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The company’s advertising business is on track to roughly double to $3 billion in 2026, with the advertiser base up 70% year over year to more than 4,000 clients. The ad-supported tier drove over 60% of Q1 sign-ups in ads markets. Netflix ended 2025 with more than 325 million paid members and management estimates it captures only roughly 7% of an addressable revenue pool worth $670 billion.
Capital is coming back to shareholders as well in the form of buybacks, which resumed after the Warner Bros. deal collapsed. Netflix repurchased 13.5 million shares for $1.3 billion in Q1 and $6.8 billion of authorization remaining.
Analyst coverage tilts the same direction, with Wall Street putting forward 37 Buy or Strong Buy ratings, 13 Hold, and zero Sells, with a consensus price target of $114.15. Co-CEO Greg Peters framed the setup on the Q1 call: “We are maintaining our guidance and strong outlook for organic growth that we established for 2026: revenue growth of 12% to 14% and operating margin at 31.5%.”
Bottom Line For long-term holders, the story is a company still compounding at scale while trading at 23x trailing earnings and 23x forward. The next test comes fast, with Q2 2026 earnings confirmed for July 16, 2026 (after market close). Investors will watch closely to see if management can hit its guide of approximately $12.574 billion and a Q2 operating margin of 32.6%. Hit those marks, and the $327 billion price tag stops looking like a ceiling and starts looking like a floor.
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Netflix Inc. shares NFLX edged higher ahead of Friday's opening bell after a report said the streaming giant is exploring live TV channels and streaming bundles as it looks to boost subscriber engagement.
The stock rose in premarket trading after initially moving lower on the news. Netflix has lost more than 39% over the past 12 months as investors have grown concerned about slowing engagement, disappointing guidance and rising competition across the streaming industry.
According to a Wall Street Journal report, Netflix executives have recently discussed adding live TV channels that would continuously stream certain programs or genre-based content.
The company has also explored bundling third-party streaming services, including NBCUniversal's Peacock, into its platform, allowing users to subscribe through the Netflix app.
The discussions mark a potential strategic shift for the company, whose former co-founder Reed Hastings long emphasized simplicity and a streaming-first approach.
Netflix has also reportedly begun offering French broadcaster TF1's programming to subscribers in France and is considering similar partnerships across Europe and Latin America.
The company is also evaluating future sports rights opportunities.
According to the report, executives are discussing bids for the 2030 and 2034 FIFA World Cup while continuing to avoid expensive long-term league rights.
Declining engagement remains a key concernThe strategic review comes as subscriber engagement has become a recurring topic among senior management.
The Wall Street Journal reported that executives identified weakening engagement during the company's annual business review this spring, despite rising profits and industry-low customer defections.
Netflix's share of US streaming time declined to 17% from 21% over the two years through March 2026, according to Nielsen.
Its share of total US TV viewership also fell to 7.8% in April, the lowest level since May 2025.
The company has faced increasing competition from Disney+, HBO Max, YouTube, Tubi and Roku Channel, while investors have also questioned its failed pursuit of Warner Bros. Discovery's studio and streaming assets.
Netflix is expected to report earnings next week alongside its latest engagement report, which will provide updated viewership data for its programming.
Citizens reiterated its Market Perform rating on Netflix, saying the company continues to benefit from the scale of its subscriber base and distribution network but faces growing questions over engagement.
Analyst Matthew Condon said rising churn could threaten Netflix's competitive position.
“This is ultimately what is prompting Netflix to explore Live TV and subscription bundle partnerships,” Condon said.
He also warned that if engagement weakens further, Netflix's competitive advantages could begin to diminish.
“The important thing for me is what is happening with ‘churn,’” said Uday Cheruvu, portfolio manager and analyst at Harding Loevner in the WSJ report.
“It may not be a concern yet, but it is something I am keeping my eye on.”
Netflix has also introduced lower-cost programming, including video podcasts, YouTube content and short-form videos from publishers such as BuzzFeed and Condé Nast, while continuing to expand its advertising business.
The company generated about $1.5 billion in advertising revenue last year and previously said it expects to double ad revenue in 2026.
Live programming could further strengthen that business because viewers cannot skip commercials during live broadcasts.
Ever since Netflix (NFLX +0.21%) walked away from trying to acquire assets from Warner Bros. Discovery, the stock price hasn't found its footing.
Investors initially cheered Netflix's decision to withdraw from the bidding war with Paramount Skydance. But shares didn't gain much traction afterward, and Netflix's warnings about its content costs in the first half of the year haven't helped. As of this writing, the Netflix stock price is down roughly 19% year to date.
On July 16, however, the next meaningful direction for the stock price could take shape.
Image source: Getty Images.
Netflix's next report On Thursday, July 16, Netflix will release its financial results for the second quarter of 2026.
Ad revenue totals will be an important metric to watch to see if Netflix is still on track to reach $3 billion by the end of the year. As subscription growth matures, ads are not just another sales vehicle for the company. Growing ad revenue can also help offset content costs.
Those content costs are also worth monitoring and hearing the company's take on. The management team did warn that content costs would be higher in the first part of the year, so if that headwind is mostly behind Netflix, that will offer some relief.
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What happens after July 16 If Netflix shows that ad revenue is on track to reach $3 billion or exceed that forecast, along with content costs stabilizing in the back half of the year, that's a recipe that could help send the stock price higher.
If ad revenue isn't living up to forecasts, if content costs are projected to climb in the upcoming quarters, or both, the next direction for the stock price is likely lower.
Either way, this report can highlight for long-term investors whether a rebound is forming or if there's still some turbulence to navigate through.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
Akcie Netflixu minulý měsíc oslabily o 17 %, protože investory znepokojilo zpomalování růstu počtu předplatitelů na klíčových trzích. Firma zároveň čelila spekulacím o akvizicích Roku a Lionsgate, které sama popřela.
Shares of Netflix (NFLX +0.31%) were drifting lower last month, continuing a broader pullback this year.
While there was no major news out on the leading streamer, skepticism about its business strategy at a time when its core markets are maturing seemed to push the stock lower.
Semafor reported that the company had bid on Roku, which agreed to be acquired by Fox, and that it was interested in buying Lionsgate, following Warner Bros. Discovery's decision to sell itself to Paramount Skydance instead of Netflix.
Additionally, Reed Hastings, the co-founder and longtime CEO of the company, stepped down from the board at the beginning of the month. Hastings had announced that decision in April, but his departure may have influenced some investors, as he now has no official role in the company.
According to data from S&P Global Market Intelligence, the stock lost 17% last month. As you can see from the chart below, the stock was heading lower over most of the month.
NFLX data by YCharts
What happened with Netflix last month Netflix kicked off the month by naming Jay Hoag as its new Chairman of the Board, replacing Reed Hastings. Hoag had been the board's lead independent director since 2012 and Netflix will no longer have a separate lead independent director, as Hoag is not an executive with the company.
After the Roku-Fox deal was announced, Semafor reported that Netflix had bid on Roku, though Netflix denied both making a formal bid for the streaming platform and that it was interest in acquiring Lionsgate, which seemed to represent table scraps after losing out on WBD.
Still, the Semafor report pushed the stock lower as it indicated that the company is searching for its next growth leg as subscriber growth slows in core markets like North America.
Other reports weighing on the stock included Meta Platforms' plans to expand Instagram TV and research firm M Science's noting that the company is on track for its weakest global net subscriber additions since 2022 in the second quarter.
Image source: Netflix.
What's next for Netflix Netflix is now down more than 40% from its peak about a year ago, even though the business continues to deliver solid results.
Its valuation may have been inflated at the peak, but the stock looks like a good buy now at a price-to-earnings ratio around 30, excluding the $2.8 billion it received from WBD's breakup fee.
Slowing subscriber growth could present a challenge, but we'll learn more when the streaming stock reports second-quarter earnings next Thursday. Analysts are expecting revenue to grow 13.6% to $12.6 billion in the quarter and for earnings per share to improve from $0.72 to $0.79.
Jeremy Bowman has positions in Meta Platforms, Netflix, and Roku. The Motley Fool has positions in and recommends Meta Platforms, Netflix, Roku, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
Netflix zveřejní výsledky za 2. čtvrtletí 16. července, zatímco akcie jsou asi 42 % pod historickým maximem. Firma dál roste: v 1. čtvrtletí tržby vzrostly o 16 % na 12,25 miliardy USD.
Netflix (NFLX +0.31%) reports second-quarter results on July 16, and it does so from an unusual spot: the business keeps growing, yet the stock has been sliding for a year. Shares trade around $76 as of this writing, down about 42% from the high of $130.23 they set last summer -- even as revenue, profits, and the company's nascent advertising arm all keep climbing. With the report just over a week away, is this a good time to buy the stock?
Let me walk through what the quarter needs to show, and whether the discounted price is worth the risk of another slide.
Image source: The Motley Fool.
A business that keeps growing Netflix's problem, if you can call it that, isn't the business. In the first quarter of 2026, revenue rose 16% year over year to $12.25 billion, helped by membership growth, a price increase, and a fast-growing advertising business. Its operating margin, meanwhile, widened to 32.3% from 31.7% in the same quarter a year ago. The company has stopped disclosing subscriber counts every quarter, but it topped 325 million paid memberships and is now entertaining an audience approaching 1 billion people.
The streaming service's advertising arm is the piece to watch. Netflix expects ad revenue to roughly double this year to around $3 billion, it now works with more than 4,000 advertisers, up about 70% from a year ago, and the ad-supported plan has become the most popular choice for new sign-ups in the countries where it is offered. For a company that long leaned almost entirely on subscription fees, that second engine matters, because it lets Netflix lift revenue per member without relying solely on price increases. For all of 2026, management is guiding for revenue between $50.7 billion and $51.7 billion -- a 12% to 14% increase -- with an operating margin near 31.5%.
If results are this solid, why has the stock lost 42%? Two reasons. First, Netflix came into 2025 with expectations set impossibly high, and once its guidance stopped clearing an ever-rising bar, that premium began to unwind. Second, the company spent months tangled in a takeover fight. Netflix had agreed to acquire the Warner Bros. studios and HBO Max from Warner Bros. Discovery in a deal with an equity value around $72 billion, which drew a rival bid and a stretch of uncertainty -- before Netflix ultimately walked away and turned to share buybacks instead.
With that distraction behind it, the story is simpler now: a steadily growing business trading well off its highs.
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Buy before the report? Valuation is where the decision gets interesting. After the slide, Netflix trades at about 25 times earnings and around 23 times the earnings expected over the coming year. For a company still growing revenue in the mid-teens, expanding margins, and doubling its advertising business, that is a far more reasonable price than the stock commanded at its peak.
It is worth appreciating how far the stock has already de-rated. A year ago, Netflix carried one of the richest multiples in big-cap tech. Today it trades at a fraction of its former multiple, even though it is still growing faster than most of its large-cap peers. The company is also throwing off record free cash flow and using part of it to buy back stock, which quietly lifts per-share earnings. None of that guarantees the shares have bottomed, but it does mean today's buyers are paying a far more grounded price than they were 12 months ago.
Of course, there are risks. Streaming is fiercely competitive, and Netflix has to keep spending heavily on content to hold its lead against deep-pocketed rivals. In addition, there are risks associated with buying before July 16. Buying right before an earnings report is a bet on the outcome of a single day. If subscriber trends or another key metric, like revenue growth, disappoints, shares could take a hit -- reasonable valuation or not.
So, is Netflix a buy before the report? For long-term investors, I think the stock is finally priced attractively enough to start a position -- but not to try to make a quick buck from a potential bounce when the earnings report is released. Shares could just as easily fall. If you like Netflix for its long-term potential, though, this looks like a reasonable entry point.
Netflix od 3. srpna přidá krátká videa od vydavatelů včetně Variety, BuzzFeed Studios, Condé Nast, Hearst Magazines, People Inc., Tastemade a dalších značek Penske Media PMX, pro předplatitele v USA, Kanadě, Británii, Irsku, Austrálii a na Novém Zélandu. Firma tím testuje zájem o levnější formáty mimo seriály a filmy.
Netflix is again experimenting with new types of content on its streaming service, as the binge model has grown dated. After expanding its service to include live content, video games, and, more recently, video podcasts, the streamer is now adding video content from publishers such as BuzzFeed Studios, Condé Nast, Hearst Magazines, People Inc., Tastemade, and various Penske Media PMX brands, like Variety, THR, Billboard, Eater, Rolling Stone, and IndieWire.
Starting August 3, Netflix will offer video content from these publishers to subscribers in the U.S., Canada, the U.K., Ireland, Australia, and New Zealand, according to Netflix and other reports released on Tuesday by Netflix’s deal partners like Variety, Billboard, THR, Rolling Stone, and others.
The new videos will vary widely in length — some run just two to three minutes, while others stretch past 20, the partners said.
For Netflix, the deal is a low-risk way to test whether its audience has an appetite for the kind of content that’s typically native to the web, such as news, lifestyle, how-tos, and other short-form formats that tend to be cheaper and faster to produce than a scripted series. If it works, Netflix could eventually build similar content in-house, though the company hasn’t said that’s the plan.
The lineup will include both licensed archival and ongoing series coming to Netflix, including BuzzFeed Celeb’s “30 Questions” and “Tasty”; Vanity Fair’s “Lie Detector Test” and “How Well Do They Know Each Other?”; AD’s “Walking Tour”; Elle’s “Where Is the Lie?”; Harper’s Bazaar’s “Burning Questions”; Billboard’s “24 Hours”; People’s “My Life in Pictures”; Travel + Leisure’s “Travel Unfiltered”; Tastemade’s “Struggle Meals”; and more.
Netflix says other publishers will be added over time.
The announcement follows a Bloomberg report this week that found that Netflix is struggling to retain fans between the first and second seasons of top shows. That trend has reportedly worried executives, though it’s largely explained by familiar culprits: high cancellation rates, long gaps between seasons, and inconsistent quality. The report suggests that Netflix is also facing a shift in consumer viewing habits, which sees the streamer now competing with YouTube and TikTok — arguably as much as it competes with traditional TV networks now.
To court viewers drawn to short-form video, Netflix already added a TikTok-style feature called “Clips” that lets users scroll through short snippets from its library. But where Clips is designed to funnel viewers toward longer shows and movies, these new publisher deals go the other direction, bringing short-form content onto the platform in its own right.
“Members don’t just want to watch a show or film and move on — they want to keep exploring the stories and personalities they love long after the final credits roll. These partnerships help us deepen fandom and create more ways for members to carry those stories with them throughout their day,” stated John Derderian, Netflix VP of Animation Series + Kids & Family TV, who is overseeing this project.
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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
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Netflix podle Bloombergu ztrácí diváky ještě před druhou řadou, protože publikum stále více míří k TikToku, YouTube a krátkým videím. Firma proto už testuje feed ve stylu TikToku.
A buzzy Bloomberg report citing Netflix data suggests viewers are increasingly abandoning popular shows before the second season. The likely reasons aren’t hard to guess: Netflix frequently cancels shows, there’s too long a wait in between seasons, and much of Netflix’s content is designed for an algorithm instead of for the sake of art.
But the data also points to a shift in how people are consuming entertainment. Netflix’s defining innovation – the binge — was built for an era when streaming was competing with traditional TV. Today, Netflix is competing with TikTok, YouTube, Reels, and various microdrama apps. That shift makes Netflix’s binge model feel like a dated relic from another era.
Bingeing helped Netflix beat TV When Netflix first dropped an entire season of “House of Cards” in February 2013, it was a revelation.
Ad-free, internet-connected TV meant we could be unshackled from the traditional routine of once-per-week shows punctuated by commercials. Instead, bingeable shows meant viewers could be entertained for hours on end, quickly forming a bond with titles and their characters that would have otherwise taken years to develop. Plus, you could drop in on them at any time — not only the day the network decided to air them, as with linear television.
This way of viewing made sense in a world where Netflix was largely still competing with traditional TV like broadcast, cable, and satellite. But Netflix won that fight. Nielsen in June 2025 announced that the TV era reached a new milestone, when the Netflix-style streaming format for the first time eclipsed broadcast and cable viewing — a milestone that made clear Netflix’s original competition was no longer the threat.
Now Netflix’s competition isn’t the TV of old, but what has become the TV of today: video apps.
TikTok and YouTube are today’s threats Thanks to the rise of TikTok, Reels, and other short-form video platforms, there’s no need for you to visit Netflix when you have a couple of hours to kill with mindless entertainment. There’s an endless, free supply of video you can turn to instead.
According to eMarketer analysts, TikTok was already nearing Netflix in terms of time spent back in 2024, when U.S. adults were spending an average of 62.1 minutes per day streaming from Netflix and 58.4 minutes per day on TikTok. In 2024, the Financial Times reported that, globally, TikTok users spent an average of 95 minutes per day on the app, the highest engagement rate among major social networks.
Image Credits:eMarketer Then there is YouTube, which offers a combination of both short and longer-form content. Per a report released this year by Digital i, YouTube surpassed Netflix in average daily viewing for the first time, with 99.1 minutes daily in 2025 compared with Netflix’s 93.4 minutes.
These market reports use differing methodologies and demographics, so they should be taken with a grain of salt — but directionally, they point the same way. YouTube and apps like TikTok are Netflix’s real competition, not TV.
Netflix has even acknowledged this existential threat by way of a product redesign in April that added a TikTok-like feed based on Netflix content.
Where Netflix gets the feed wrong is that it’s still pitched as a way to help you find something to watch, rather than being the thing you watch. It’s understandable why Netflix went this route, given its library, but it’s not necessarily what the end user wants. Today, many people with dopamine-drained attention spans are instead seeking out microdrama apps in growing numbers when they want a serialized storyline they can consume in minutes.
Image Credits:ReelShort According to data from the app intelligence firm Appfigures, one top microdrama app, ReelShort, saw roughly $1.2 billion in gross consumer spending in 2025, up 119% from 2024, TechCrunch’s Amanda Silberling previously reported. Meanwhile, another leading app, DramaBox, generated $276 million in gross consumer spending last year, more than doubling its 2024 numbers. Even TikTok acknowledged the competition, launching a microdrama app of its own to test the market appetite for this type of content.
Where does Netflix go from here? Where does that leave Netflix, whose claim to fame has been full seasons dropped at once for rapid consumption?
Likely, it will have to rethink how it’s greenlighting, producing, and releasing what it considers a “TV show.”
That doesn’t mean that the Netflix model has to pivot entirely to short-form to keep up with the competition, but it may need to reconsider how people want to stream. Viewers may no longer want to commit the hours and weeks it takes to get through a show and all of its subsequent seasons, for instance. They want something that feels more “finishable,” the way you can easily get through a YouTube video or TikTok series from a creator.
A simple fix could see Netflix try prioritizing single-season shows, traditionally known as miniseries or limited series, allowing people to tune into a completed work without having to worry whether it would end on a cliffhanger and never be renewed.
Netflix could also experiment with breaking up shows into smaller chunks, like the before-its-time Quibi model.
The Jeffrey Katzenberg-backed startup, Quibi, had bet that people would eventually gravitate towards TV content designed to be consumed in shorter sessions. Unfortunately for Quibi, the pandemic hit, and people suddenly had a lot of time to watch TV, leading to its demise.
Many Netflix shows could be easily revamped for shorter viewing sessions, particularly lightweight competition shows like “Nailed It,” “Is It Cake?,” or “Squid Game: The Challenge.” Meanwhile, Netflix could surely produce better microdramas than the ones currently on the market with their awful acting and ridiculous storylines.
To generate interest in its higher-quality content, some Netflix shows could be shifted to the weekly release model. This is something Netflix has already proven works in specific cases. For instance, it drops new episodes of its reality show “Love Is Blind” in weekly dumps, making it great watercooler fodder as everyone is watching the new episodes around the same time. (Faster consumption models could work, too. For instance, Peacock’s “Love Island USA” is the reality hit of the summer, as there’s a new episode almost daily).
But instead of experimenting with different types of short-form content for quick entertainment, combined with slower releases for seasons, or focusing more heavily on miniseries worth watching, Netflix has been dabbling in other areas.
As of late, it’s expanded its lineup with podcasts, which reportedly no one is watching, and live content, which can be hit or miss. In terms of the latter, Netflix investments in live sports have generally done well, but its recent entry into live reality competition shows, “Star Search,” has already been canceled despite a clever real-time voting feature. More work here is still needed.
Bloomberg’s report framed the problem facing Netflix as a failure to create loyal TV viewers who tune into a Season 2, but the underlying issue facing the streamer is much bigger. Netflix may need to rethink whether it still needs to focus on competing with traditional TV and its long-running shows, or whether it should focus on entertainment projects whose storytelling arcs have less filler and wrap up more quickly.
To find the right balance between viewers ditching cable and those who just want something better than TikTok, Netflix is finding itself needing to reinvent TV all over again.
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Netflix je po 42% propadu za 12 měsíců levnější, když se obchoduje za 28násobek volného cash flow a 21násobek odhadovaného zisku. Firma zároveň čeká letos 12,5 miliardy USD volného cash flow.
Netflix (NFLX 1.80%) stock was flying high last summer on strong subscriber and operating income growth. But then some cracks started to appear in the business.
Earnings growth was bolstered by unsustainable positive impacts from foreign exchange rates and price hikes. A Brazilian tax created a one-time earnings hit and raised questions about whether it would remain an ongoing expense. It tried to acquire Warner Bros. Discovery at an exorbitantly high price. Management's 2026 outlook showed decelerating revenue growth. The company escaped the overpriced Warner Bros. Discovery acquisition while receiving a termination fee and pushed through another price hike sooner than expected. Investors rewarded the stock following the news, but it has since sold off to a price unseen since before 2025. The stock now sits about 42% off its high from last summer, making it an excellent buying opportunity for investors.
Image source: Netflix.
This cash machine is selling for cheap After years of burning cash to develop original content, Netflix has transformed into a massive free-cash-flow-generating machine. The company generated about $2.3 billion in organic free cash flow in addition to $2.8 billion in cash from the Warner Bros. termination fee last quarter. Management expects $12.5 billion in free cash flow for the full year, including the termination fee.
That free cash flow growth is supported by a systematic approach to growing the business. The company's recurring subscription revenue makes projecting revenue growth relatively straightforward. It then uses that to set targets for content spend and operating margin. It aims to achieve an annual expansion of that operating margin.
Cash outlays for new content are roughly 1.1-times amortized content expenses, as the company continues to expand its content catalog to drive subscriber growth. That creates predictable free cash flow growth year after year.
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Importantly, Netflix's competitors are hard-pressed to match its breadth and depth of content. It has 325 million global subscribers, across which to monetize all of its content. The shift to ad-supported streaming has opened new content opportunities for Netflix, including sports and other live events. As a result, Netflix can try many different series, films, and events, and quickly double down on whatever's working. That's why Netflix is set to maintain its position as the premier streaming entertainment source for hundreds of millions of consumers, giving it pricing power.
After the crash in Netflix's stock price over the past year, investors can now pick up the stock for just 28 times free cash flow and 21 times forward earnings estimates. While the company may see its top-line growth slow, prudent content cost management will ensure it can continue growing its bottom line and free cash flow at a very appealing rate relative to the current price investors pay. It looks like a great opportunity to buy a wonderful business at a good price.
Adam Levy has positions in Netflix. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
Netflix čeká 16. července výsledky za 2. čtvrtletí; investoři budou sledovat růst reklamního byznysu, který míří na 3 miliardy USD v roce 2026. Důležitý bude i vývoj marží po silném prvním pololetí.
Earnings season brings out a lot of noise. Most of it is guesswork dressed up as analysis. But when Netflix (NFLX +4.77%) reports results for the second quarter of 2026 on July 16, there are three specific things I think could tell investors whether the next chapter of this company's growth story is actually playing out or just being promised.
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The advertising business is no longer a side project When Netflix first launched its ad-supported tier, the skeptics were loud. Ads felt off-brand for a company built on the idea of uninterrupted streaming. That conversation is over now.
Netflix's ad-supported tier reached 250 million global monthly active viewers as of its Upfront presentation in 2026, up from 190 million in late 2025. The company is on track to double its advertising revenue to $3 billion in 2026, after already doubling it to $1.5 billion in 2025. More than 80% of ad-tier members watch weekly, which is the kind of engagement stat that keeps advertisers coming back.
What I'll be watching on July 16 isn't the headline revenue number, but rather whether Netflix gives any updated signal on its path to $9 billion in ad revenue by 2030. That figure is the one that reframes how the market should think about this company's long-term earnings power. If management tightens that guidance or adds color on advertiser retention, this stock could move.
Image source: Getty Images.
Live sports is giving the ad business real leverage Netflix's live sports push isn't just about subscriber acquisition anymore. It's also an advertising play. The company is testing dynamic ad insertion technology with WWE programming and plans to roll it out across its NFL Christmas Day games. It also expanded NFL coverage in 2026 with an international regular-season game and added the Westminster Dog Show to its live events lineup.
Live programming changes the economics of streaming advertising because it's the one format where viewers don't skip and advertisers will pay a premium for it. Walt Disney and Comcast have known this for years through ESPN and NBC Sports. Netflix is now in that conversation in a way it wasn't 18 months ago. The Q2 report will be the first time investors can start to see whether live content is moving the needle on ad pricing.
The margin setup heading into the second half is underappreciated Netflix entered 2026 warning investors that content spending would be front-loaded into the first half of the year. The company reported a 32.3% operating margin in Q1 -- solid, but management guided for 32.6% in Q2. The full-year operating margin target is 31.5%.
Here's the math that I think matters: If content spend is weighted toward the first half and the company hits or exceeds its first-half margin targets, the back half of the year should show margin expansion. Netflix generated $12.25 billion in revenue in Q1, up 16% year over year. If that rate holds through Q2 while costs flatten in the second half, the operating leverage could be more visible than the current stock price reflects.
Netflix no longer reports quarterly membership numbers, which makes it harder to independently verify growth claims. And a business growing this fast attracts competitive pressure -- Amazon, Apple, and others are not sitting still. If ad revenue growth disappoints or management's second-half cost narrative doesn't hold, July 16 could go the other way.
The three catalysts above are real. But earnings are always a two-sided event, and Netflix has trained investors to expect a lot. What makes Netflix different to me this time around is that most of the streaming investments aren't just about the scale of content, but rather whether the company can keep finding new revenue layers inside a business most people thought was already mature. I think Netflix has that piece. That's a rare thing, and July 16 is a chance to see how much further it can go.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, and Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.
Netflix (NFLX - Free Report) closed at $71.40 in the latest trading session, marking a -3.23% move from the prior day. This change lagged the S&P 500's 0.79% gain on the day. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 1.52%.
The internet video service's stock has dropped by 14.06% in the past month, falling short of the Consumer Discretionary sector's loss of 0.73% and the S&P 500's loss of 1.82%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings report is set to go public on July 16, 2026. The company is forecasted to report an EPS of $0.79, showcasing a 9.72% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $12.57 billion, showing a 13.48% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.6 per share and a revenue of $51.41 billion, demonstrating changes of +42.29% and +13.77%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Netflix. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Netflix currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Netflix is holding a Forward P/E ratio of 20.5. This indicates a premium in contrast to its industry's Forward P/E of 13.04.
It is also worth noting that NFLX currently has a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Broadcast Radio and Television industry currently had an average PEG ratio of 1.09 as of yesterday's close.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 106, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
Netflix rozšiřuje reklamní platformu Ads Suite; počet inzerentů v roce 2025 vzrostl o více než 70 % na více než 4 000. Reklamní tržby se mají v roce 2026 téměř zdvojnásobit na zhruba 3 miliardy USD.
Key Takeaways Netflix is expanding its Ads Suite to grow advertising beyond subscription revenue.NFLX's advertiser base topped 4,000 after growing more than 70% in 2025.Netflix expects its expanding ad ecosystem to support long-term revenue growth and diversification. Netflix (NFLX - Free Report) continues to strengthen its advertising platform, positioning the business as an increasingly important growth driver beyond subscription revenues. The company is expanding its in-house ad technology, broadening advertiser access and improving campaign measurement, steps expected to help it capture a larger share of the growing connected television advertising market. This complements Netflix's expanding global audience and engagement, creating a differentiated value proposition for advertisers.
The advertising business has already begun scaling meaningfully. Projections point to advertising revenues nearly doubling to around $3 billion for 2026, supported by strong advertiser adoption. The advertiser base expanded more than 70% in 2025 to over 4,000 advertisers, while programmatic buying is on track to account for more than half of the non-live advertising business, signaling improved platform adoption.
Netflix is simultaneously enhancing its proprietary Netflix Ads Suite. Updates include expanded targeting, improved frequency management across streaming services and additional audience measurement tools. The company has also broadened integrations with leading demand-side platforms, easing programmatic buying and improving campaign efficiency, investments that could strengthen advertiser retention and attract incremental ad budgets over time.
However, Netflix remains smaller in scale than entrenched connected television advertising players and sustained adoption of new formats and measurement tools will be necessary to narrow that gap.
The expanding advertising ecosystem is expected to support long-term revenue growth while diversifying Netflix's monetization model beyond subscriptions. The Zacks Consensus Estimate for second quarter 2026 revenues is pegged at $12.57 billion, indicating growth of 13.5% year over year, indicating advertising's rising role in sustaining top-line growth ahead.
Netflix faces Stiff CompetitionNetflix faces competition from peers like Roku (ROKU - Free Report) and Amazon (AMZN - Free Report) , which continue to invest in their connected TV advertising businesses. Roku is expanding its advertising platform with AI-powered optimization, identity solutions and advanced measurement capabilities to improve campaign performance. Meanwhile, Amazon is strengthening Prime Video's advertising ecosystem by leveraging its extensive ad-tech infrastructure, first-party shopping data and programmatic capabilities. While Roku and Amazon continue to broaden their advertising ecosystems, Netflix's expanding Ads Suite, growing advertiser base and rising programmatic adoption are expected to strengthen its competitive position and support long-term advertising revenue growth.
NFLX’s Price Performance, Valuation & EstimatesShares of Netflix have dropped 21.3% in the year-to-date period compared with the broader Zacks Consumer Discretionary sector’s decline of 9.5%.
NFLX’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Netflix appears overvalued, trading at a forward 12-month price-to-sales ratio of 5.72X, higher than the industry's 3.98X. NFLX carries a Value Score of D.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $3.60 per share. This indicates a 42.29% increase from the previous year.
NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix sází na AI pro lepší doporučování, vyhledávání a tvorbu obsahu, aby zvýšil udržení uživatelů. Firma zároveň rozšiřuje AI nástroje pro reklamu a mobilní rozhraní.
Key Takeaways Netflix is using AI to improve discovery, recommendations and conversational search for users.AI creator tools and a new mobile interface aim to boost content efficiency and engagement.Amazon and Disney are expanding AI capabilities, challenging Netflix's retention advantage. Netflix’s (NFLX - Free Report) aggressive AI strategy is emerging as a key differentiator that could strengthen user retention and help drive long-term revenue growth. The company has made AI one of its three strategic priorities, using generative AI to improve content discovery, personalize recommendations, test conversational search features and create higher-quality promotional assets. These enhancements are designed to help members quickly find relevant content, increasing engagement and reducing churn. Management also noted that its internal engagement-quality metric reached another record high in the first quarter, highlighting how a better user experience can translate into stronger retention.
Beyond improving content discovery, Netflix is leveraging AI to improve content creation. Its acquisition of InterPositive expands the company's suite of AI-powered filmmaking tools, enabling creators to produce content more efficiently while enhancing storytelling. Since content remains Netflix's largest investment, improving production efficiency could increase returns on content spending over time. The company is also rolling out an upgraded mobile interface featuring a vertical video discovery feed, further enhancing personalization and engagement.
Meanwhile, Netflix continues to expand AI beyond streaming. At its May 2026 Upfront event, the company introduced AI-powered advertising tools to help brands optimize campaigns, demonstrating how AI is also supporting its fast-growing advertising business. However, the long-term success of Netflix's AI initiatives will depend on consistently delivering engaging content and effectively implementing new AI features amidst fierce competition.
By combining AI-driven personalization, creator tools, product innovation and advertising capabilities, Netflix is strengthening engagement across its platform, supporting higher user retention and creating additional long-term monetization opportunities.
Netflix's AI Investments Face Powerful CompetitorsNetflix's AI-driven personalization for retention faces growing competition from Amazon.com, Inc. (AMZN - Free Report) , which leverages AWS AI, Bedrock and Alexa+ capabilities to enhance personalization, advertising and ecosystem engagement. While AMZN benefits from superior AI infrastructure, scale and investment capacity, it lacks Netflix's dedicated streaming focus. However, AMZN's broader monetization opportunities make it a formidable competitor.
The Walt Disney Company (DIS - Free Report) is strengthening its competitive position by expanding AI through hyper-personalized recommendations, interactive Disney+ and technology-led engagement to reduce churn. DIS combines premium intellectual property with cross-platform experiences, creating long-term opportunities beyond streaming. However, the company remains early in AI deployment, making execution and technology integration key challenges. Even so, its expanding AI capabilities and ecosystem strengths position DIS as a meaningful challenger to Netflix's established AI-driven retention advantage.
NFLX’s Price Performance, Valuation & EstimatesShares of Netflix have declined 24.4% in the year-to-date period compared with the broader Zacks Consumer Discretionary sector’s fall of 11%.
NFLX’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Netflix appears overvalued, trading at a trailing twelve-month P/S ratio of 6.5X, higher than the industry's 3.82X. NFLX carries a Value Score of D.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $3.60 per share, unchanged over the past 30 days and up by 2% over the past 60 days. This indicates a 42.29% increase from the previous year.
EPS Trend of NFLX Stock
Image Source: Zacks Investment Research
NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix vzrostl o více než 5 %, protože investoři sází na živé sportovní přenosy a AI jako motor dlouhodobého růstu. Firma rozšiřuje spolupráci s NFL, WWE a MLB.
Netflix Inc. NFLX shares rose more than 5% on Friday, outperforming the broader market.
Investors assessed the streaming giant's growing investments in live sports programming and artificial intelligence initiatives as potential drivers of long-term growth and user engagement.
The S&P 500 gained 0.3% while the Nasdaq Composite was up 0.06%.
Investors appeared encouraged by Netflix's efforts to diversify beyond its traditional on-demand content model and create new opportunities for subscriber retention and monetization.
Netflix has increasingly embraced live sports rights after previously avoiding regular live programming.
The company has secured agreements covering WWE programming, Major League Baseball events and an expanded NFL package.
The NFL arrangement includes five games during the 2026 season and the NFL Honors show in February 2027.
The schedule includes a Week 1 matchup between the Los Angeles Rams and San Francisco 49ers in Australia on Sept. 10 and a Thanksgiving Eve game between the Green Bay Packers and Los Angeles Rams on Nov. 25.
It also features two Christmas Day games and an additional Week 18 contest.
Netflix's four-year partnership with the NFL runs through the 2029-2030 season, providing a recurring pipeline of live content across multiple months each year.
The company is also associated with a proposed Floyd Mayweather-Manny Pacquiao rematch scheduled for Sept. 19.
However, the event's status remains uncertain due to a lawsuit seeking to block the stream.
Investors have also been monitoring strategic developments after Netflix reportedly lost a $22 billion bidding contest for Roku.
Co-CEO Ted Sarandos described the effort as "muscle-building," while indicating that the company remains disciplined in evaluating acquisition opportunities.
Netflix has identified artificial intelligence as one of its three strategic priorities and is deploying the technology across several areas of its business.
The company is using generative AI to improve content discovery, personalize recommendations, test conversational search features and create promotional assets.
Management said its internal engagement-quality metric reached another record high during the first quarter, highlighting improvements in user experience and retention.
Netflix is also applying AI to content production. Its acquisition of InterPositive expanded the company's portfolio of AI-powered filmmaking tools aimed at helping creators produce content more efficiently while improving storytelling capabilities.
The company has also introduced an upgraded mobile interface featuring a vertical video discovery feed designed to further improve personalization and engagement.
Beyond streaming, Netflix is expanding AI into advertising.
During its May 2026 Upfront event, the company introduced AI-powered advertising tools intended to help brands optimize campaigns, supporting the growth of its ad-supported business.
Competition and technical challenges remainDespite Friday's gains, Netflix shares remain under pressure from a technical perspective.
The stock is trading 5.3% below its 20-day simple moving average, 12.71% below its 50-day moving average and 22.6% below its 200-day moving average.
A death cross that formed in December 2025, when the 50-day moving average moved below the 200-day moving average, continues to signal a longer-term downtrend.
Momentum indicators suggest the stock may be oversold. Netflix's relative strength index stands at 20.76, well below the threshold of 30 that often indicates stretched conditions.
Competition in AI-driven personalization is also intensifying.
Amazon.com is leveraging AWS AI, Bedrock and Alexa+ capabilities to strengthen personalization and advertising offerings, while Walt Disney is expanding artificial intelligence features across Disney+ and other services.
Even so, investors appear increasingly focused on whether Netflix's combination of selective live sports rights and expanding AI capabilities can strengthen engagement, reduce subscriber churn and create additional long-term monetization opportunities.
Netflix se propadl na nové 52týdenní minimum kolem 72 USD, asi 46 % pod letošním maximem. Firma přesto dál roste: tržby v 1. čtvrtletí stouply o 16 % na 12,25 mld. USD.
Shares of streaming giant Netflix (NFLX 1.37%) have had a brutal year. The stock peaked near $134 in the middle of 2025, and it has since fallen roughly 46% to about $72 as of this writing, recently touching a fresh 52-week low. For a name that was one of the market's standout performers just a year ago, that is a stunning reversal.
So, is the beaten-down stock finally a buy? With the stock down and second-quarter results scheduled to be released July 16, this is a timely question worth consideration.
Image source: Getty Images.
What knocked Netflix stock down Netflix's slide hasn't come from one bad headline so much as a steady stream of them.
Early this year, the company's agreement to acquire Warner Bros. from Warner Bros. Discovery fell apart when Netflix declined to top a higher rival bid. Though Netflix did walk away with a $2.8 billion termination fee. Around the same time, co-founder Reed Hastings stepped down as chairman at the June 4 annual meeting, closing out a nearly three-decade run.
The bigger blow came with first-quarter results on April 16. The quarter itself was strong. Revenue rose 16% year over year to $12.25 billion, and operating margin widened to 32.3% from 31.7% a year earlier. But after that solid start, management left its full-year 2026 outlook unchanged, still calling for revenue of $50.7 billion to $51.7 billion (12% to 14% growth) and an operating margin of 31.5%. For a stock that had climbed into the report, simply holding the line on its full-year revenue forecast was enough to trigger a sell-off.
Management also guided for second-quarter operating margin to step down about 1.5 points from the year-ago quarter, as content costs are anticipated to land heavily in the first half of the year before easing in the back half.
And then there's the more recent headline about media giant Fox agreeing to acquire the streaming platform and service provider Roku. Netflix was reportedly one of the bidders for Roku.
Some investors may interpret Netflix's recent interest in acquisitions as a sign that it needs to acquire other companies in order to remain competitive.
Is the sell-off a buying opportunity? Step back from the noise, and the underlying business looks healthy.
Netflix's advertising revenue grew more than 2.5 times in 2025 to over $1.5 billion, and management expects it to roughly double again this year to about $3 billion. In markets where the ad tier is available, more than 60% of new sign-ups now choose it. The company also raised its full-year free cash flow forecast to about $12.5 billion and has resumed buying back stock after pausing during the Warner pursuit.
Then there's the valuation. At about $72, Netflix trades at about 23 times analysts' consensus forecast for its earnings per share this year -- the cheapest the stock has looked in years.
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With this said, there's good reason for investors to be cautious. Revenue growth appears to be slowing -- from 16% in 2025 toward a guided 12% to 14% this year. And competition across streaming isn't letting up, making a big content budget a necessity to keep growing.
Still, for the first time in a while, the price looks reasonable. But I still wouldn't call the stock a bargain, and there's no guarantee we've found the bottom.
But for long-term investors who have wanted to own the streaming leader and balked at its premium, a price near a 52-week low -- on a business still growing revenue in the mid-teens and doubling its ad sales -- looks like one of the more reasonable entry points Netflix has offered in years.
Netflix letos klesl o 17 % a po neúspěšných pokusech o Warner Bros. a Roku čelí pochybám o růstu. Firma ale uvádí více než 325 milionů platících předplatitelů a 16% růst tržeb v prvním čtvrtletí.
Netflix (NFLX 0.30%) stock is down 17% year to date and slipped again on June 16 after reports linked the company to a failed bid for Roku. It's now official that Fox has reached an agreement to acquire the popular streaming platform in a $22 billion deal, which means if the reports about Roku are accurate, Netflix has now missed on two deals this year. Earlier this year, Netflix walked away from Warner Bros. after Paramount Skydance swooped in with a better offer.
Wall Street believes failure to win these deals indicates a weakening growth story, but is that the right interpretation?
Image source: The Motley Fool.
Disciplined capital allocation Management has emphasized that acquiring quality assets would be a luxury, not a necessity, for its growth. It has over 325 million paying members, helping it generate $13 billion in profit on $47 billion of trailing revenue.
Wall Street might think Netflix is running out of opportunities, necessitating acquisitions to drive further growth. This may explain the stock's recent dip. But that doesn't align with the current momentum in the business and where it is investing.
Netflix is set to spend $20 billion this year on content production. The decision to not engage in a bidding war for these deals reflects discipline. Management understands the value of its content spending and the returns it will yield over time. It clearly concluded that the price required to win a bidding war would yield a lower return than investing in its own content. That's the kind of disciplined capital allocation that Warren Buffett loves.
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Why Netflix is still a solid investment Netflix still has a small share of total TV viewing time. It estimates that it has captured only 45% of its addressable market among broadband households. That indicates the potential for as many as 800 million subscribers.
The business looks healthy. Revenue grew 16% year over year in the first quarter. These are solid numbers for a competitive market. Google's YouTube has consistently ranked higher than Netflix in TV viewing share.
Netflix is expanding its content library to include live events and video podcasts, which continue to show solid traction with its members. These are opportunities to gain a larger share of people's viewing time and capture more of their addressable market.
The stock is trading at just 21 times 2026 earnings estimates. This seems too conservative for a strong brand generating over a 30% operating margin and still growing revenue at double-digit rates. Investors have the chance to buy shares in a disciplined company at an attractive price with room to grow.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Roku, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
Omnicom Media a Netflix oznámily nové partnerství, které propojí publikační data Acxiom s AI‑poháněnou reklamní technologií Netflixu. Cílem je vytvářet, optimalizovat a měřit personalizovanější kampaně na míru diváckým zvyklostem.
Announcement Launches Omnicom Media's Cannes News Blitz Revealing Partnerships that Connect Brand Content to Streaming Programming, Viewing Experiences and Consumer Expectations
, /PRNewswire/ -- Omnicom Media, an Omnicom (NYSE: OMC) Connected Capability, and Netflix today announced a new collaboration that combines Omnicom's Media Group's Acxiom audience intelligence with Netflix's AI-powered advertising technology to help brands deliver more engaging and personally relevant advertising experiences on Netflix. Clients will be able to use Netflix's AI-enabled ad format, which marries advertisers' creative with the shows, films, and worlds Netflix members love, with Acxiom insights to create, optimize, and measure campaigns tailored to viewers' habits.
This capability reflects findings in Omnicom Media's Connected Content research, which explores what types of content, creative experiences and delivery methods drive stronger engagement and connection with audiences. Consumers respond more positively to advertising experiences that align with the content they are actively choosing to watch and that feel additive, timely, and personalized rather than interruptive.
"Consumers have made it clear that relevance drives engagement, particularly in premium streaming environments where expectations for the viewing experience are exceptionally high," said Megan Pagliuca, Chief Product Officer, Omnicom Media. "This collaboration with Netflix creates an enhanced framework for how brands can connect audience intelligence with creative transformation in real time. By bringing these capabilities together, we are enabling brands to deliver advertising that feels more connected to the moments in which viewers are already highly engaged."
Under the collaboration, Omnicom Media will provide advertiser-defined Acxiom audience segments alongside a brand brief. Netflix then applies those audience segments with its proprietary AI engines and LLM-enabled technology to fuse relevant Netflix titles with assets produced by the Omnicom Production content engine to build a highly personalized and engaging ad for members. This allows advertisers to show up in ways that feel natural and to build multiple iterations of a single ad.
"Since launching the Netflix Ads Suite, we've been committed to reimagining what advertising performance looks like. By combining Omnicom's audience planning with Netflix's AI capabilities, proprietary first-party data, and some of the most popular and beloved shows and movies, we can deliver ads that are as compelling as the titles they surround. For Omnicom clients, this offers creative that doesn't just capture attention — it drives outcomes. That's the power of bringing creativity, media, data, and AI together on one service," said Jon Whitticom, Vice President of Ads Product, Netflix.
In addition to expanded relevance and personalization, the collaboration provides advertisers with closed-loop first-party measurement capabilities to better understand campaign effectiveness and performance across audiences, format variants, and content environments.
"As marketers, we are constantly looking for ways to make advertising feel more relevant and additive to the consumer experience," says Catherine Berger at Bimbo Bakeries. "What stood out for us is the ability to align creative with the content environment in a way that feels natural and personalized, while still maintaining speed to market and brand consistency at scale."
The capability will be available to Omnicom Media clients in the US and will roll out to additional countries by the end of the year.
CONTACT: [email protected]
ABOUT OMNICOM MEDIA
Omnicom Media, an Omnicom (NYSE: OMC) Connected Capability, is the world's largest global media management network. Powered by the Omni Intelligence Platform, Omnicom Media agencies leverage $75.6 billion in billings, 40,000+ specialists across 70+ markets, and the industry's most powerful portfolio identity, commerce, and intelligence assets to design dynamic Growth Ecosystems that enable the world's most ambitious businesses to grow faster and smarter. The Omnicom Media portfolio includes global media agency brands OMD, Initiative, PHD, UM, Hearts & Science, and Mediahub; core Omnicom Integrated Media offerings Acxiom, the world's premier identity solution, and the Flywheel digital commerce practice; and specialty services across the cloud consulting, creator, financial, healthcare, and sports & entertainment categories.
Netflix se zaměřuje na živé sporty, protože jeho největší hity „Squid Game“ a „Stranger Things“ jsou už uzavřené. Akcie mezitím spadly na nové 20měsíční minimum.
Netflix’s New StrategyIn recent years, Netflix has placed greater emphasis on live sports content. The theory is that live viewership can help boost advertising for Netflix’s ad-free and ad-supported plans when it comes during sporting events with sports fans used to ads.
The company currently has rights to WWE, MLB and NFL content and it may add more sports content. Instead of bidding on large and costly full-season rights, Netflix has been selective. For the NFL, this includes airing a total of five games for the 2026 season and being the home of the NFL Honors award show the week of the Super Bowl in February 2027. This is up from two Christmas Day games during the 2025 season.
Netflix will stream the following games live:
Netflix now has a four-year partnership through the 2029-2030 season with the NFL that will help provide content multiple months of the year. Last year, the platform set a record, averaging 27.5 million U.S. viewers on Christmas for the Detroit Lions vs. Minnesota Vikings game.
Netflix also has rights to the Home Run Derby, a key event of the MLB All-Star Game break, along with several other one-off MLB events.
Netflix Boxing: Knockout Or Bust?Outside of NFL and MLB, Netflix also has the upcoming Floyd Mayweather and Manny Pacquiao rematch on Sept. 19, but that fight remains in limbo. Boxing promoters CSI Entertainment have filed a lawsuit against Mayweather and is seeking to block Netflix from airing the bout.
The loss of that fight could sting Netflix, which has seen success with boxing and MMA events. A recent May MMA event with MVP Promotions drew an average of 12.4 million viewers and a peak of 17 million viewers, setting new MMA records.
Are Live Sports Enough?Live sports is not the only content that Netflix has to offer subscribers, with the streamer also pumping out original series and movies every month alongside other acquired media.
The problem is that some of the company’s biggest series and movies are in the rearview mirror now.
The company’s two biggest hits, "Squid Game" and "Stranger Things," are now complete, having helped boost overall financials in recent years and delivered strong subscriber figures and low churn.
Without those hits, fans are left with "Bridgerton" and "One Piece," both of which don’t have new content until 2027.
The top 10 movies list includes one film from 2026 ranking ninth all-time, and two films from 2025. The other seven films are two years old or older.
Netflix announced it reached the 250 million monthly active user milestone for its ad-supported plan earlier this year. The company no longer breaks out subscriber figures, which could have investors and analysts zeroed in on other key metrics.
The company reports financial results on July 16, which comes after missing earnings per share estimates from analysts in two of the last three quarters.
A company that was heavily against acquisitions for years now considering buying other media and streaming companies could suggest that its best years of growth are behind.
Netflix Stock Price ActionAt last check, Netflix stock traded at around $72.83 on Tuesday after hitting a new 20-month low of $71.81 on Monday. The stock is down 19.9% year-to-date in 2026 and down 41.9% over the last 52 weeks.
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Netflix po ztroskotání akvizice Warner Bros. Discovery hledá nový růstový příběh, zatímco jeho akcie od února klesly o 14 %. Za 12 měsíců odepsaly přes 40 %.
Netflix shares have come under pressure in recent months as investors question what will drive the company's next phase of growth following the collapse of its proposed acquisition of Warner Bros. Discovery.
The streaming giant's stock has fallen 14% since Feb. 26, when Netflix declined to match Paramount Skydance's $81 billion bid for Warner Bros. Discovery.
Over the past 12 months, the shares have lost more than 40% of their value, despite the company continuing to post solid growth and profitability.
The failed deal highlighted both the opportunities and challenges facing Netflix as it seeks new ways to attract subscribers and increase engagement.
NFLX shares were up 0.27% on Monday.
Netflix has broadened its offerings beyond traditional video streaming by expanding into podcasts and gaming.
During the FIFA World Cup, users have been able to watch The Rest Is Football, a daily video podcast hosted by former England striker and BBC presenter Gary Lineker, and play the video game FIFA World Cup: Launch Edition.
The initiatives are part of a broader strategy aimed at increasing user engagement and supporting subscriber growth after Netflix cracked down on password sharing, introduced advertising-supported subscription tiers, and raised prices.
However, analysts remain skeptical that these newer businesses can materially move the company's financial performance.
“Barring an acquisition, I don’t think there’s a ton to move the needle beyond the core business,” Morningstar analyst Matthew Dolgin said in a Barrons report.
“To get sentiment as bullish as it was before, they really need to show more acceleration.”
Dolgin rates Netflix two stars out of five and estimates that $80 would be a fair value for the stock.
One of Netflix's biggest challenges is maintaining viewer engagement in an increasingly competitive streaming market.
According to Nielsen data, Alphabet's YouTube TV increased its share of US streaming time to 28% from 25% over the two years through March 2026.
During the same period, Netflix's share fell to 17% from 21%.
Analysts say the decline reflects concerns over the company's intellectual property portfolio and ability to consistently produce blockbuster content.
“People are wondering what turns the ship here. There’s not a clear view of what Netflix does next, and that’s why the stock has struggled,” Matthew Condon, a director of equity research at Citizens JMP who rates the stock at Market Perform.
“Netflix’s share of streaming time is very stagnant,” says Condon. “They don’t have a ton of great intellectual property, which was the interesting thing about Warner Bros.”
The abandoned Warner Bros. acquisition would have provided Netflix with major franchises, including Harry Potter and Batman, assets that could have helped improve user engagement.
Content spending and M&A questions persistNetflix avoided taking on more than $50 billion in additional debt by stepping away from the Warner Bros. transaction and received a $2.8 billion breakup fee.
Still, investors remain concerned that the company could pursue another acquisition to accelerate growth.
Rumors linking Netflix to Lionsgate Studios have persisted despite the company denying interest in a deal.
The company also faces leadership uncertainty following the announcement that co-founder Reed Hastings would step down as chairman.
Meanwhile, Netflix plans to increase content spending by 10% in 2026 as it seeks to develop another global hit comparable to Squid Game or Stranger Things.
Although such investments could improve engagement, they are also expected to pressure profit margins.
Despite the recent selloff, some investors see value emerging.
The stock currently trades at a price-to-earnings multiple of 24, roughly in line with the S&P 500 average, underscoring the debate over whether Netflix's recent weakness represents a long-term buying opportunity or a reflection of slowing momentum.
