24/7 Wall Street
21 Oct 2026, 11:45 UTC · 1h ago
Netflix Has Lost Nearly Half Its Value in a Year
Impact · against what's priced in
NFLX is seeing a structural breakdown of its growth narrative, with revenue deceleration and ad-revenue misses challenging the core compounding assumptions baked into the price. While the stock has already fallen significantly, the latest guidance suggests the current price still overestimates the scaling speed of the ad tier and the stability of margins.
- NFLX−0.40
Challenges what's priced in
- The price assumes
Revenue growth decelerating from 16.2% toward the low-to-mid teens, consistent with a 13.7% 10-year CAGR.
Currency-neutral growth slowed to 11% (a three-year low) and Q4 guidance of 11.5% is significantly lower than the prior year's 17.6%, pushing growth below the 13.7% CAGR the market assumes.
What NFLX's price assumes · Aug 26
