Writing Netflix Off Now Would Be A Mistake

Bay Area Ideas 5.33K Followers Follow Summary Netflix remains a buy despite recent stock weakness and a failed Warner Bros. Discovery deal. Q2 showed slowing revenue growth and margin contraction, but engagement remained resilient and full-year guidance was largely reaffirmed. The strategic pivot to live sports streaming aims to reaccelerate growth and strengthen competitive positioning. Valuation is at multiyear lows, with a forward P/E of 19.61 and a forward PEG below 1.0, suggesting undervaluation for long-term investors. JHVEPhoto/iStock Editorial via Getty Images Introduction Early this year, I reiterated my bullish call on Netflix, Inc. ( NFLX ) after I saw strong engagement stats and operating margin expansion. The forward P/E ratio was also near multiyear lows. Since then, the This article was written by Bay Area Ideas 5.33K Followers Follow I'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success. I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and God Bless America! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.