I’m going to give my honest thoughts on
$NFLX after earnings
so netflix’s Q3 earnings were just a slight beat
▶️ Revenue: $12.87B (Est. $12.87B) ✅; +11.8% YoY
▶️ EPS: $0.87 (Est. $0.82) ✅
However, the guide was horrible especially for their ad business
▶️ Q4 Revenue: $13.44B (vs prior Street ~$13.51B) ❌
▶️ FY26 Ad Revenue: ~$2.7B (cut from ~$3B) ❌
In the chart below, EPS and revenue growth has been shrinking
The market is punishing for Netflix as it failed to maintain their growth.
So the most important question is Netflix a good buy now?
I would say no.
Netflix currently has a FWD PE of 18, so it still can go lower if growth slows down more.
YouTube and AI short form content has been stealing market share from Netflix.
The ad business side for Netflix has been slowing down.
It’s giving me Nike or PayPal vibes, I will still stay cautious.
Do you think
$NFLX is a buy now?