Netflix stock has fallen 48% from its record high, creating what some analysts see as a long-term buying opportunity. The streaming giant reported mixed second-quarter results on July 16, with earnings per share of $0.80 beating the $0.79 estimate but revenue of $12.56 billion slightly missing the $12.59 billion forecast. Management narrowed its 2026 revenue guidance to a range of $51 billion to $51.4 billion, while advertising revenue is expected to double to $3 billion. The stock trades at a price-to-earnings ratio of 21.7, well below its five-year average of 40.6 and the Nasdaq-100's 33.4, implying a potential 54% upside just to match the broader tech index.
Netflix IncMixed Q2 results with EPS beat but revenue miss, narrowed guidance, and low P/E ratio creating analyst debate on valuation.
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