Netflix has become less expensive than every Magnificent Seven stock except Meta Platforms, trading at just 20.2 times forward earnings compared to 22.4 for the S&P 500. The stock hit a 52-week low on June 22, falling 22.3% year to date and 45.6% from its high, even as the company guided for full-year 2026 revenue of $50.7 billion to $51.7 billion and a 31.5% operating margin. Recent acquisition attempts, including bids for Warner Bros. Discovery and Lionsgate Studios, have drawn mixed reviews, while a third price hike in less than three years tests consumer spending. Netflix's international expansion continues, with Asia-Pacific revenue surpassing Latin America for the second straight quarter and U.S. and Canada revenue now under 30% of the total, making it a diversified entertainment powerhouse at a multiyear valuation low.
Netflix IncNetflix trades at a low forward P/E of 20.2, below most Magnificent Seven stocks and the S&P 500, making it a value buy.
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