Should You Buy Netflix Stock Before July 16?

Streaming giant Netflix (NASDAQ: NFLX) has been struggling to win over investors this year. Down over 20% thus far in 2026, the stock has been in a tailspin as news of co-founder Reed Hastings leaving the company has raised concerns about what will come next for the business, particularly with its name involved in acquisition rumors again.

There's nothing like a strong earnings report that could reenergize investors, however. And with Netflix reporting earnings in mid-July, a strong performance is what's needed for the streaming stock to rally. Should you buy it before its second-quarter numbers come out on July 16?

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Is Netflix's growth good enough?

Netflix isn't a company that's been comfortable standing idle. Its streaming platform is incredibly popular and diverse, and the business has still gotten into creating its own shows and movies, offering live sports, and even into gaming, in an effort to bolster its overall value proposition. The key question is whether it's enough, and whether Netflix truly needs an acquisition to take its business to the next level and make it even bigger and better.

At 16%, its most recent quarterly growth rate was solid, but it was, admittedly, below its 10-year average of around 20%. The company may be in search of a lever to pull on to expand its horizons. It walked away from its attempt to buy assets from Warner Bros. Discovery earlier this year after a bidding war with Paramount Skydance became too costly. Most recently, it's been rumored to be interested in buying Lionsgate, which it dismissed.

A worsening of its growth rate could heighten worries about the company's path forward and whether it might need to lean on acquisitions in the future. While such a move could diversify and strengthen its growth prospects, it might also worsen margins and overall profitability.

Why Netflix stock may be worth buying despite the uncertainty

Netflix's future has more question marks these days than it did in the past, but the business is still solid. With a growth rate in the mid-teens and the stock trading at a very reasonable 24 times earnings (lower than that S&P 500 average of 25), there's some good value here. The business is generating some decent growth, and its stock isn't egregiously priced.

Provided that you're willing to buy and hold for multiple years, I think Netflix's stock can be an excellent addition to your portfolio right now. The market may have overreacted to news of Hastings' departure, but there's no reason to push the panic button on Netflix.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.