Down Roughly 50% From Its Highs, Is Netflix Stock Finally a Buy?

Impact · against what's priced in

The Q3 results and expansion plans for Netflix are largely consistent with a market that has already priced in decelerating revenue growth and a pivot toward the advertising tier as a retention tool. The appointment of Peter Rice to address content quality is a strategic shift, but does not yet provide a catalyst to overcome the structural growth concerns already baked into the price.

NFLX+0.00

Already priced in

The price assumes

Revenue growth decelerating from 16.2% toward the low-to-mid teens

The reported 12% year-over-year revenue growth and Q4 guidance of 12% align closely with the price's existing assumption of a deceleration into the low-to-mid teens.

What NFLX's price assumes · Aug 26

• NFLX▲1510%
• earnings▲44%
• revenue growth▲12%
• valuation
• content strategy
• layoffs
• streaming