Netflix: The Sell-Off Is Understandable, But Not Enough For Me To Sell

Netflix remains a high-quality, profitable, global leader with strong margins and robust free cash flow. Revenue growth is decelerating, with Q2 at 13.4% and Q3 guidance pointing to 11.7%, tempering upside at current valuation. Management maintains a shareholder-friendly capital allocation, including $4.7B in Q2 buybacks and $12.5B full-year free cash flow guidance. I rate NFLX a 'Hold'—waiting for revenue stabilization or more material advertising contribution before turning more bullish.

Netflix Inc. (NFLX) has spent the last few years getting past a lot of the old concerns. The password-sharing issue is no longer the main story; revenue growth has improved, margins are stronger, and the business is throwing off plenty