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

Source The 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!*

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*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.
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