Should You Buy Netflix Stock After Its Recent 48% Plunge?
Netflix (NASDAQ: NFLX) reported mixed Q2 2026 results on July 16, with earnings per share beating Wall Street expectations but revenue and forward guidance falling short. The stock dropped 7% after the report, contributing to a 48% decline from its record high. Factors weighing on sentiment include increased competition and the departure of co-founder Reed Hastings. Despite the pessimism, the article argues Netflix remains dominant with over 325 million subscribers, a growing ad-supported tier ($8.99/month), and heavy investment in live sports (NFL, MLB, boxing, WWE). Advertising revenue is on track to double to $3 billion in 2026. The author views the recent decline as a long-term buying opportunity, noting the stock is cheap relative to earnings.
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