Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.

Netflix appears to be a company with very strong operating profitability, but with a noticeably elevated valuation across a number of multiples. Revenue has been growing steadily in recent periods, and along with it gross profit, EBITDA, operating profit, and net profit have all increased, confirming an improvement in the quality of the business. Net profit margin at 28.5% and operating margin of around 29.7% look very strong for the sector and are significantly above industry benchmarks. ROE, ROA, and ROI are also at high levels and continue to improve, which indicates highly efficient use of capital and assets. At the same time, P/E has already declined from earlier levels, but it still remains above the industry median, while P/S, P/B, and P/FCF look significantly expensive compared with the sector. This means the market is already pricing in high business quality and further growth, so the upside from re-rating is limited. The balance sheet overall looks acceptable: debt/equity is below the industry median, debt does not look excessive, and the cash position is notable. However, the quick ratio is zero, which points to weak immediate liquidity and calls for caution, even despite a normal current ratio. The absence of dividends makes the story entirely dependent on growth and multiple expansion rather than shareholder income. Overall, the fundamentals support the company as a high-quality asset, but the high absolute valuation and lack of a dividend cushion limit an upward revision of the target. Therefore, the adjustment should be moderately negative and conservative, reflecting the strong business performance while the stock price remains expensive.

Netflix, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, без изменений. Уверенность медведей остается на низком уровне.

Weak index, flat. Bearish confidence remains low.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Сильный индекс, без изменений. Рынок не поддерживает медведей.

Strong index, flat. The market does not support the bears.

Сильный индекс, незначительно упал. Приток средств в лонги на высоком уровне.

Strong index, slightly down. Inflow of funds into longs at a high level.

Сильный индекс, незначительно вырос. Отток средств из шортов на высоком уровне.

Strong index, slightly up. Outflow of funds from shorts at a high level.

Strong revenue and profit growth with high profitability, but the valuation on P/E, P/S, P/B, and P/FCF remains expensive, which limits upside.

Netflix NFLX and Roku ROKU sit on opposite ends of streaming, yet chase the same ad dollar. Netflix has built an ad tier and live events, while Roku, the top U.S. platform by hours, monetizes viewing via its Home Screen and Roku Channel.
Both firms' recent results reaffirmed ad-supported streaming as a growth engine, leaning into live content for the second half of 2026. That overlap, plus diverging stock performances, makes this an opportune time to compare both names.
Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for NFLX Stock
Netflix's core strength remains its scale and content depth. Its second-quarter 2026 shareholder letter showed revenues climbing 13% year over year to $12.6 billion, with operating income up 11% to $4.2 billion, and view hours up 2% in the first half of the year despite competition from the Winter Olympics and World Cup. Netflix reiterated full-year 2026 revenue guidance of $50.7-$51.7 billion and an operating margin target of 31.5%, alongside an expectation that ad revenues will roughly double in 2026 to approximately $3 billion. Its 2026-2027 pipeline is stacked, including final seasons of The Witcher and Outer Banks, new Stranger Things spin-off content, Greta Gerwig's Narnia and an expanded live-sports and events calendar featuring the NFL, WWE, MLB and the 2027 FIFA Women's World Cup.
However, real challenges persist. Netflix disclosed that live programming, despite consuming more than 5% of content spend, drives only about 1% of total viewing hours, an inefficient trade-off versus its core library content. The company also walked away from acquiring Warner Bros. Discovery's studio and streaming assets, leaving questions about how it fills content gaps against deep-pocketed rivals. Management flagged that content amortization growth stayed elevated in the first half before easing, pressuring near-term margins, and free cash flow was dented by cash tax payments tied to the terminated Warner Bros. Discovery deal. With price hikes already implemented across its U.S. plans, Netflix has less room to lean on pricing, making subscriber and ad-tier growth essential to its guided trajectory into 2027.
The Zacks Consensus Estimate for 2026 earnings is pegged at $3.59 per share. This indicates a 41.9% increase from the previous year.
Netflix, Inc. Price and Consensus
The Case for ROKU Stock
Roku's advertising and subscription-distribution engine is firing on multiple cylinders. Its first-quarter 2026 shareholder letter showed Platform revenues up 28% year over year to $1.13 billion, with a gross margin of 51.6%. Advertising revenues were up 27% and subscription revenues rose 30%, aided by Howdy's expansion onto Prime Video and Apple TV and Peacock joining Premium Subscriptions. Roku raised its full-year adjusted EBITDA guidance to $675 million, up from $635 million, and reaffirmed its target of $1 billion in free cash flow by 2028, if not sooner. The Roku Channel was the second-most-engaged app on its platform, and management highlighted record Premium Subscription sign-ups tied to Super Bowl LX and the Milan Cortina Winter Olympics.
Roku's forward pipeline reinforces this momentum. In April, it announced Roku Curate, a new advertising data product built with premium partners including Best Buy and Instacart, and it also struck a partnership bringing CW Network programming to The Roku Channel next-day starting in fall 2026, adding over 800 hours of library content, plus new WWE NXT streams. Roku has added dozens of free channels in 2026, including World Cup coverage, and launched a fresh brand campaign in July to deepen engagement with its Roku City ecosystem. Headwinds still remain: Devices revenues face pricing pressure from tightening memory supply and higher component costs, and Roku still trails Netflix in absolute scale. But with diversified monetization across advertising, subscriptions and hardware distribution, and expanding OEM device partnerships, Roku's overall growth algorithm looks broader-based and less dependent on any single content bet.
The Zacks Consensus Estimate for 2026 earnings is pinned at $2.41 per share. The estimate indicates year-over-year growth of 308.47%
Roku, Inc. Price and Consensus
Valuation and Price Performance Comparison
Both Roku and Netflix trade at premium valuations, but the extent of that premium differs. Roku trades at a forward 12-month price-to-sales ratio of 3.54X, while Netflix commands a steeper 5.51X multiple. Given Roku's broader-based, multi-pronged monetization engine spanning advertising, subscriptions and platform partnerships, its lower premium appears better justified than Netflix's richer multiple, which leans heavily on continued content-driven subscriber growth.
NFLX vs. ROKU: P/S F12M Ratio
Image Source: Zacks Investment Research
On price performance, shares of Roku have returned 32.6% over the year-to-date period, sharply outpacing Netflix shares, which have declined 22.8% over the same stretch, underscoring the market's diverging sentiment toward the two ad-supported streaming stocks right now.
NFLX Underperforms ROKU Year to Date
Image Source: Zacks Investment Research
Conclusion
Roku's diversified platform economics, broader monetization across advertising, subscriptions and OEM partnerships, an expanding content pipeline through deals like CW Network and Howdy, raised EBITDA guidance, and a more reasonably justified valuation premium collectively give it an edge over Netflix right now. Netflix remains a fundamentally strong long-term streaming franchise, but its steeper valuation, softer free cash flow trajectory and heavier reliance on content-driven subscriber growth warrant caution in the near term. Investors would do well to track and hold Roku shares for further sustained upside, while patiently waiting for a more attractive entry point before adding meaningfully to Netflix. NFLX and ROKU carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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Roku, Inc. (ROKU) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NFLX vs. ROKU: Which Ad-Supported Streaming Stock Has an Edge Now?

Key Points
Netflix management has decided to publish its “What We Watched” engagement report only once a year.
The company's operating strategy has evolved dramatically in recent years.
Slower revenue gains should warrant a lower valuation multiple.
When Netflix (NASDAQ: NFLX) reported its financial results for the second quarter, shares initially sold off. Revenue had increased 13.4% year over year to $12.6 billion, but this figure came in below Wall Street forecasts.
Investors must understand that this streaming stock is now in a different phase of its life cycle. The days of rapid growth are over for Netflix.
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 »
Clear signs of Netflix's new era
From 2025 to 2028, the consensus view among sell-side analysts is that the company will post an annualized revenue gain of 11.6%. In the prior three years, the top line increased at a compound annual rate of 12.7%. And before the COVID-19 pandemic, Netflix was consistently raising its sales by more than 20% per year.
Netflix is now a more mature business, and the leadership team's updated reporting policy highlights this.
Netflix stopped providing quarterly subscriber metrics in 2025. It now reveals this critical number only when certain milestones are reached.
Additionally, the business just announced that it will show investors engagement data from its "What We Watched" reports only once per year (down from twice) starting in 2027. It's not hard to figure out that management is deliberately withholding information that it believes might support a pessimistic view from market participants.
The company's strategy has evolved. It's now doing things that were previously unthinkable. Just in the past few years, Netflix has cracked down on password-sharing, introduced an ad-based tier, launched games, shown video podcasts, and started spending more on live events. There are also reports that the business is considering live TV and bundling with other streaming services.
Competition is another factor that can't be overlooked. The battle for eyeballs and attention has never been so intense. Netflix has always had to face direct rivals, like other streaming platforms, many of which also have deep pockets to pay up for content.
Social media is another major source of competition. Whether it's from TikTok or Meta Platforms' Instagram, for instance, short-form video is extremely popular.
Investment implications
Netflix shares currently trade 47% off their peak (as of July 27). The market might be starting to realize and accept that the growth story is slowing. There is a clear investing takeaway.
The stock can be bought today at a price-to-earnings ratio of 22.3. Netflix bulls might view this as a very cheap opportunity. However, given that the company isn't going to grow the way it used to, the shares should trade at a lower valuation than in the past.
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 $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
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*Stock Advisor returns as of July 29, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Netflix: The Days of Rapid Growth Are Over

Netflix's NFLX expanding investment in live programming is emerging as a key driver of its long-term subscriber growth strategy. Rather than pursuing an expensive portfolio of premium sports rights, the company has adopted a selective approach by adding live sports, entertainment specials and marquee events that complement its on-demand library. Recent initiatives, including the MLB Home Run Derby, the World Baseball Classic in Japan and other live entertainment events, reflect Netflix's efforts to attract new members while expanding engagement and advertising opportunities. Live programming is evolving into a strategic extension of Netflix's core streaming business rather than a standalone offering.
Early results suggest that live content is generating meaningful business value despite representing a small portion of Netflix's content investment. Six of the company's 10 largest new-member sign-up days over the past five years have been driven by live events. While live programming is expected to represent roughly 5% of content spending and only about 1% of viewing hours this year, it has been supporting subscriber acquisition, advertising demand and content discovery. Total viewing hours increased 2% year over year in the first half of 2026, adding roughly 1.5 billion viewing hours.
Netflix is also leveraging live events to strengthen its broader content ecosystem by using marquee broadcasts to promote original series and encourage viewers to discover additional programming. This integrated approach enhances returns on content investments by extending viewer engagement beyond live events while creating premium advertising inventory for marketers.
By focusing on high-impact live events that drive new-member acquisition, deepen engagement and expand advertising opportunities, Netflix is strengthening another lever for subscriber growth. As the company expands its live content portfolio in a disciplined manner, the strategy could support sustained subscriber growth while creating additional monetization opportunities.
How Netflix Stacks Up Against Peers
Compared with Disney DIS and Warner Bros. Discovery WBD, Netflix's live content strategy is more selective and event-driven. Disney continues to rely on ESPN and premium sports rights to drive engagement, while Warner Bros. Discovery leverages TNT Sports and live programming across its media portfolio. In contrast, Netflix focuses on marquee live events that complement its on-demand library and support subscriber acquisition. As Disney expands its streaming bundle and Warner Bros. Discovery integrates live sports into Max, Netflix's disciplined approach could help sustain membership growth while enhancing advertising opportunities.
NFLX’s Price Performance, Valuation & Estimates
Shares of Netflix have declined 22.8% year to date, underperforming both the Zacks Broadcast Radio and Television industry and the Zacks Consumer Discretionary sector’s fall of 20.9% and 9.6%, respectively.
Image Source: Zacks Investment Research
From a valuation standpoint, Netflix appears overvalued, trading at a forward 12-month price-to-earnings ratio of 19.36X, higher than the sector’s 16.4X. NFLX carries a Value Score of D.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NFLX’s 2026 earnings is pegged at $3.59 per share, down by a penny over the past 30 days. This indicates a 41.9% increase from the previous year.
Netflix, Inc. Price and Consensus
NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Netflix's Live Content Push: Can it Sustain Subscriber Growth?

Key Points
Amazon raised $25 billion in bonds in early July.
CEO Andy Jassy's company plans to spend $200 billion this year to build out AI infrastructure.
Jassy called AI a "once-in-a-lifetime opportunity."
In 2026, one of the dominant investment themes is concern about how much large tech companies like Amazon (NASDAQ: AMZN) are spending on building artificial intelligence (AI) infrastructure. That concern is reflected in the Amazon stock price; as of this writing, shares are up less than 2% so far this year.
Amazon's recent bond sale and capital expenditure plans, however, suggest that the company has a far different concern than most of the market.
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 »
Ballooning spending
In early July, Amazon sold $25 billion worth of bonds to continue fueling the build-out of AI infrastructure. In addition, its capital expenditures for 2026 are projected at $200 billion, a significant increase from the $131 billion spent in 2025. As a point of comparison, Meta Platforms expects its capital expenditures to fall between $125 billion and $145 billion, while Alphabet plans to spend between $195 billion and $205 billion.
The worry is that the spending may take years to yield any meaningful return. The more extreme concern is that AI will become a money pit with almost no return, and that large tech companies have ultimately wasted years of time, resources, and capital on it.
That said, Amazon clearly has a different fear.
Missing out
In tech, history is littered with missed opportunities. One classic example is when Blockbuster could have bought Netflix in 2000 for $50 million. Blockbuster went on to file for bankruptcy in 2010, while Netflix today is worth more than $291 billion.
That fear of missing out or making one critical mistake, like not investing enough in building AI infrastructure, can help explain why Amazon is spending so much. It also explains why there may seem to be a disconnect: Investors worry it is spending too much, while Amazon fears it's not spending enough.
In his letter to shareholders in April, Amazon CEO Andy Jassy addressed the spending head-on:
AI will reinvent every customer experience, and there will be a slew of new experiences only possible because of AI. I've followed the public debate on whether this technology is overhyped, whether we're in 'a bubble,' and if the margins and ROIC will be appealing. My strong conviction, at least for Amazon, is that the answers are no, no, and yes.
Jassy went on to say, "AI is a once-in-a-lifetime opportunity where the current growth is unprecedented and the future growth even bigger."
Jassy could be right, as this may still just be the early stages before the full AI growth story takes shape, and Amazon clearly doesn't want to miss out. The trade-off for having the patience to let those investments pay off is that Amazon may lag the S&P 500 (SNPINDEX: ^GSPC), as it has this year.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, 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 Amazon 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 $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% 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.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Amazon CEO Andy Jassy Just Sold $25 Billion in Bonds to Finance the Company's AI Data Center Build-Out. Amazon Has Committed $200 Billion in Capex for 2026.

Key Points
Netflix has been a powerhouse performer, but its growth appears to be slowing.
Shares of Netflix are attractively priced right now.
Netflix (NASDAQ: NFLX) has averaged annual gains of 21% over the past 15 years. But in 2026, shares are down 25%. Is this a good opportunity to invest in Netflix?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Why invest in Netflix?
Netflix is a streaming powerhouse, along with Amazon's Prime Video service. Per Evoca.tv, Netflix's recent U.S. streaming market share was 21%, vs. 22% for Amazon Prime Video. The company has boasted that "We are entertaining over half a billion people in more than 190 countries and 50 languages..."
In its second quarter, Netflix posted revenue rising 13% year over year and net income up 9%. The company has been broadening its offerings, too, with live sports broadcasts, games, and podcasts.
Netflix's shares seem reasonably valued at recent levels, with a forward-looking price-to-earnings (P/E) ratio of 22, below its five-year average of 31. Its recent price-to-sales ratio of 6.1 is also below its average of 6.5.
A final plus is management discipline, as Netflix has walked away from some big deals, such as those with Warner Bros. Discovery and Roku, after choosing not to match the winning bids from Paramount Skydance and Fox, respectively. A company with less regard for shareholder value might have kept bidding. Netflix's management has also been buying back millions of shares -- 13.5 million in the last quarter -- which rewards shareholders. Why might you not invest in Netflix?
Of course, there are some concerns to consider. There have been reports of Netflix losing viewers between seasons of various shows due to too long a wait for the next season. Also, some worry that it's relying on price increases for growth more than it should. Be sure to look at the whole picture before deciding whether to invest in Netflix.
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 $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% 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.
*Stock Advisor returns as of July 28, 2026.
Selena Maranjian has positions in Amazon, Netflix, and Warner Bros. Discovery. The Motley Fool has positions in and recommends Amazon, Netflix, Roku, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Down 25%, Is It Finally Time to Buy Netflix (NFLX) Stock?

In this video, I will cover four stocks I am selling or taking profits on before their upcoming earnings reports and explain the risks that make me nervous about each one. Watch the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were from the trading day of July. 24, 2026. The video was published on July. 25, 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 CrowdStrike right now?
Before you buy stock in CrowdStrike, 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 CrowdStrike 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 $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% 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.
*Stock Advisor returns as of July 28, 2026.
Neil Rozenbaum has positions in Netflix and Uber Technologies. The Motley Fool has positions in and recommends Apple, CrowdStrike, Lumentum, Netflix, and Uber Technologies. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Time to Cash Out? 4 Stocks I'd Sell Before It's Too Late

I provide my thoughts on whether Netflix (NASDAQ: NFLX) stock is a buying opportunity on this huge dip.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
*Stock prices used were the afternoon prices of July 25, 2026. The video was published on July 27, 2026.
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 $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% 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.
*Stock Advisor returns as of July 28, 2026.
Parkev Tatevosian, CFA has positions in Netflix. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Netflix Stock: Buy or Sell? My Final Verdict

For Immediate Release
Chicago, IL – July 28, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Bank of America Corp. BAC, Netflix, Inc. NFLX, TotalEnergies SE TTE, Park Aerospace Corp. PKE and Friedman Industries, Inc. FRD.
Here are highlights from Monday’s Analyst Blog:
Top Stock Reports for Bank of America, Nertflix and TotalEnergies
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bank of America Corp., Netflix, Inc. and TotalEnergies SE, as well as two micro-cap stocks Park Aerospace Corp. and Friedman Industries, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Fill Holes Left from Friday's Selloff
Today's Featured Research Reports
Bank of America’s shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+22% vs. +13.4%). The company’s second-quarter 2026 results were aided by trading and investment banking (IB) strength along with net interest income (NII) growth. NII growth is expected to continue supported by steady loan growth and a higher-for-longer rate environment.
Bank of America’s expansion strategy by opening financial branches will boost the top line. Along with this, investments in digital capabilities will enhance client engagement and cross-selling opportunities, likely driving fee income.
However, elevated expenses due to investments in technology and franchise expansion will hurt the bottom line to an extent. The volatile nature of the capital markets business makes growth in trading revenues uncertain. Weak asset quality is another concern, which might hamper financials.
(You can read the full research report on Bank of America here >>>)
Shares of Netflix have underperformed the Zacks Broadcast Radio and Television industry over the past six months (-17.2% vs. -15.5%). The company reported second quarter 2026 earnings per share of 80 cents, up 11.1% year over year and beat the Zacks Consensus Estimate by 1.27%. Revenues rose 13.4% year over year to $12.56 billion, driven by membership growth, pricing and higher advertising revenues, though the figure missed the consensus mark by 0.1%.
Operating margin was 33.4%, down from 34.1% a year earlier, reflecting higher content amortization tied to a front loaded content slate. Free cash flow fell to $1.53 billion from $2.27 billion on higher cash taxes linked to the terminated Warner Bros. Discovery deal.
Netflix ended the quarter with $9.1 billion in cash and $14.4 billion in gross debt. It narrowed its 2026 revenue outlook to $51.0 billion to $51.4 billion, implying 13% to 14% growth, while maintaining its 31.5% operating margin steady.
(You can read the full research report on Netflix here >>>)
TotalEnergies’ shares have gained +18.8% over the past six months against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +45.7%. The company’s second-quarter earnings and sales were lower than expected due to low production volumes. The company offers a balanced investment case.
TotalEnergies’ global portfolio, resilient output outside disrupted regions, and exposure to LNG and newer hydrocarbon basins support cash generation across cycles. Start-ups and acquired assets should add volumes, while low-carbon investments provide a longer-term transition path and help align the business with emissions goals.
However, a neutral stance remains appropriate because the company is exposed to geopolitical and security risks in regions where operations can be interrupted. Reliance on acquired assets adds integration and execution risk, and commodity swings can pressure margins and cash flow. In the past six months, shares of TotalEnergies underperformed its industry.
(You can read the full research report on TotalEnergies here >>>)
Shares of Park Aerospace have outperformed the Zacks Aerospace - Defense Equipment industry over the past six months (+51.8% vs. -7.8%). This microcap company with a market capitalization of $744.76 million benefits from multi-year commercial aerospace demand through its GE Aerospace-related programs, including a long-term agreement with MRAS covering composite materials for Airbus A320neo family and other aircraft platforms through 2029. Airbus’ planned production ramp to 70-75 A320neo family aircraft monthly by the end of 2027 could provide sustained supplier demand.
Park’s FY2027 Q1 sales rose to $18.3 million, gross margin expanded to 34.8%, and adjusted EBITDA margin improved to 25%. Its largely unlevered balance sheet, supported by $80.5 million in cash and $8.9 million in marketable securities, provides flexibility for growth investments and shareholder returns.
However, risks include customer concentration, delayed returns from capacity investments, uneven defense program realization, and supply-chain disruptions. The stock trades at 8.22X trailing EV/sales.
(You can read the full research report on Park Aerospace here >>>)
Friedman Industries’ shares have outperformed the Zacks Metal Products - Procurement and Fabrication industry over the past six months (+91.6% vs. -6.8%). This microcap company with a market capitalization of $253.03 million benefits from an expanded operating platform following the Century Metals & Supplies acquisition, which broadened its product portfolio, processing capabilities and geographic reach.
Friedman Industries’ flat-roll business remains the primary growth driver, supported by higher throughput, utilization and record fiscal 2026 sales volume. The Sinton facility and value-added processing capabilities provide operating leverage, while tubular segment recovery adds diversification. Strong liquidity supports investment and flexibility.
However, profitability remains sensitive to steel prices, inventory levels, demand cycles and cost absorption. Higher borrowings, hedge timing impacts and supplier concentration remain key considerations. The valuation suggests modest investor expectations, leaving room for upside if growth initiatives and profitability improvements continue.
(You can read the full research report on Friedman Industries here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights BAC, NFLX, TTE, PKE and FRD

In this video, Motley Fool contributors Jason Hall and Jeff Santoro talk through the latest from Netflix (NASDAQ: NFLX) after earnings guidance sent the stock falling. At a 52-week low, we see opportunity, but also reasons to be cautious.
*Stock prices used were from the afternoon of Jul. 17, 2025. The video was published on Jul. 28, 2025.
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Jason Hall has no position in any of the stocks mentioned. Jeff Santoro has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Roku. The Motley Fool has a disclosure policy. Jason Hall 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.
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Netflix: Time to Buy the Post-Earnings Dip?

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*Stock prices used were the afternoon prices of July 25, 2026. The video was published on July 27, 2026.
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Parkev Tatevosian, CFA has positions in Netflix. The Motley Fool has positions in and recommends Adobe and Netflix. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	23.72 15.34
Price/Sales	6.81 0.97
P/B	9.97 1.39
P/FCF	26.75 12.08

Indicator	TTM Median
ROE	49.24 12.46
ROA	23.81 5.10
ROI	32.54 7.26
Net Worth	316.71 0.68
Quick Ratio	0.00 0.93
Current Ratio	1.41 1.15

Indicator	TTM Median
Net Profit Margin	28.52 9.73
Operating Margin	29.72 14.22
Gross Margin	49.03 54.09
Return on tangible equity	49.24 26.06

Indicator	TTM Median
EPS	0.80 0.28
EPS Forecast	0.79 0.26
Revenue	12.25B 80.00M
Gross Profit	6.36B —
EBITDA	8.27B —

Netflix, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue