{
  "id": 3293826,
  "title": "Netflix Stock Is Down Big-Time. Is This Finally a Buying Opportunity?",
  "url": "https://urgent.news/2026/08/25/netflix-stock-is-down-big-time-is-this-finally-a-buying-opportunity",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-25T15:35:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/netflix-stock-down-big-time-153500551.html"
  },
  "original_language": "en",
  "account": "Netflix's stock price has plummeted approximately 40% from its 2025 high, yet the company's core business continues to expand. In the second quarter of 2026, Netflix reported $12.6 billion in revenue, marking a 13% year-over-year increase. Operating income reached $4.2 billion, with an operating margin exceeding 33%. These figures don't indicate a broken business. Comparisons to Nvidia's 2009 \"Double Down\" signal are made, highlighting a similar situation for Netflix, a company of much smaller size. The question now arises: has the sell-off made Netflix stock an attractive buying opportunity?\n\nNetflix remains one of the world's largest entertainment platforms, with more than 97 billion hours of content watched during the first half of 2026. The financial situation remains robust, with revenue growth at a double-digit rate and profitability remaining strong. Netflix is also benefiting from operating leverage, and advertising plans are reaching over 250 million monthly active users, with advertising revenue expected to reach roughly $3 billion in 2026. Despite this, recent developments have raised concerns about the pace of growth and engagement.\n\nThe company missed Wall Street's earnings expectations and plans to reduce the frequency of its viewing-hours reports starting in 2027. However, Netflix decided against a deal for Warner Bros. Discovery's studio and streaming assets, which highlighted concerns about potential future growth costs. For Netflix to be considered a bargain, three tests must be met: sustaining healthy revenue growth, expanding margins, and increasing advertising revenue. If these conditions are met, the stock could offer a mature core business with significant growth potential.\n\nThe recent decline in Netflix's stock could put the stock into a bargain territory if the company continues to meet these three criteria. However, the market has become more skeptical, with expected revenue growth moderating to between 13% and 14% in 2026, down from 16% in 2025. While the author does not recommend buying Netflix solely based on the stock's price decline, they suggest doing so if the market's pessimism about the company's future is unjustified. The author also points out that Netflix was not included in The Motley Fool's \"10 Best Stocks\" list for 2026, despite the potential for significant long-term returns.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Motley Fool",
        "title": "Netflix Stock Is Down Big-Time. Is This Finally a Buying Opportunity?",
        "url": "https://urgent.news/2026/08/25/netflix-stock-is-down-big-time-is-this-finally-a-buying-opportunity-3298928",
        "published": "2026-08-25T15:15:00.000Z"
      },
      {
        "outlet": "Nasdaq Markets",
        "title": "Netflix Stock Is Down Big-Time. Is This Finally a Buying Opportunity?",
        "url": "https://urgent.news/2026/08/25/netflix-stock-is-down-big-time-is-this-finally-a-buying-opportunity-3300919",
        "published": "2026-08-25T15:35:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}