Netflix Stock Is Down 40%. Is It a Buy?

Source Motley_fool

Netflix (NASDAQ: NFLX) has been punished for slowing growth, but profits are moving in the opposite direction. Expanding margins, stronger cash flow, advertising growth, and buybacks could keep earnings compounding even without a return to Netflix's old valuation.

Stock prices used were the market prices of Aug. 21, 2026. The video was published on Sept. 3, 2026.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Should you buy stock in Netflix right now?

Before you buy stock in Netflix, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*

Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of September 6, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Oracle Stock Crashes After OpenAI's Revenue Gap. Who's Next?Oracle shares plunged more than 5% on Thursday, October 8, after a report raised fresh questions about how much money OpenAI is actually making.The selloff spread across AI stocks. Broadcom fell nearl
Author  Beincrypto
Oct 09, Fri
Oracle shares plunged more than 5% on Thursday, October 8, after a report raised fresh questions about how much money OpenAI is actually making.The selloff spread across AI stocks. Broadcom fell nearl
placeholder
XRP’s Nasdaq Moment Nears: 5 Things to Know About EvernorthXRP investors are about to get a new way to invest in the token through the stock market.Evernorth Holdings completed its merger with Armada Acquisition Corp. Its shares are expected to begin trading
Author  Beincrypto
Yesterday 01: 25
XRP investors are about to get a new way to invest in the token through the stock market.Evernorth Holdings completed its merger with Armada Acquisition Corp. Its shares are expected to begin trading
placeholder
When Will Bitcoin Price Reclaim Its All-Time High? Cycle Data Gives a DateBitcoin price currently trades 35% below its record peak of $126,000. When will BTC again reclaim its all-time high? Based on market cycle patterns, popular analyst Root suggests it could be by June 2
Author  Beincrypto
5 hours ago
Bitcoin price currently trades 35% below its record peak of $126,000. When will BTC again reclaim its all-time high? Based on market cycle patterns, popular analyst Root suggests it could be by June 2
placeholder
EUR/USD Hits 17-Month Low Near. Why the Euro Keeps Losing to the DollarThe euro has fallen to a 17-month low against the US dollar. EUR/USD touched 1.1161 on Oct. 5, its weakest level since May 2025.The pair has lost more than 3% in five weeks and traded near 1.1182 on M
Author  Beincrypto
5 hours ago
The euro has fallen to a 17-month low against the US dollar. EUR/USD touched 1.1161 on Oct. 5, its weakest level since May 2025.The pair has lost more than 3% in five weeks and traded near 1.1182 on M
placeholder
Market News Today Australia: Oil Rallies, Gold Slips as US Dollar Hits 18-Month HighWTI crude rises as Middle East tensions support oil prices, while gold slips and US chip stocks weaken. Explore the latest market outlook for Australian CFD traders.
Author  Mitrade Team
3 hours ago
WTI crude rises as Middle East tensions support oil prices, while gold slips and US chip stocks weaken. Explore the latest market outlook for Australian CFD traders.
goTop
quote