Down Roughly 50% From Its Highs, Is Netflix Stock Finally a Buy?
Netflix shares have tumbled as growth has slowed.
Netflix's stock has experienced a significant decline of approximately 50% since reaching an all-time closing high of $133.91 on June 30, 2025, following the company's third-quarter earnings report. The stock's valuation has become more attractive, potentially making it a buy despite slightly slower revenue growth. Netflix reported its third-quarter results on October 20, which contributed to the stock's ongoing decline.
The company reported solid growth, with revenue rising 12% to $12.87 billion and adjusted earnings per share (EPS) increasing 49% to $0.87. Analysts had expected EPS of $0.82 with revenue of $12.87 billion. The company's revenue growth was consistent across regions, with U.S. and Canada revenue up 11% to $5.6 billion, EMEA revenue growing 11%, Latin America revenue increasing 17%, and Asia-Pacific revenue rising 12%.
Management anticipates a 12% revenue growth for Q4, led by membership growth, price increases, and ad revenue. Looking ahead, Netflix plans to launch ad tier subscriptions in 15 new countries, including nine in EMEA, two in South America, and New Zealand, in the following year. With an attractive valuation and a focus on turning the company around, Netflix stock appears to be a buy.
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