Forget Selling Netflix: NFLX Is the Streaming Stock I'm Buying More Of
Source: Motley Fool ↗ (cross-verified by 2 outlets — full list below)
Netflix shares have fallen 42% over the past year, yet the author remains convinced the stock is a compelling buy in 2026. He points to the current valuation of roughly 22 times trailing earnings, a consensus “buy” rating from analysts, and an average one‑year price target of $92—about 30% above the present price. Short‑interest is minimal, with only 2% of shares on loan, suggesting limited bearish pressure. These factors, combined with the steep price decline, create what he describes as a buying opportunity despite the recent dip.
The author highlights Netflix’s financial strength relative to its rivals, noting that in the most recent earnings period before Warner Bros. Discovery’s merger, Netflix posted $3.4 billion of net income on $12.6 billion of revenue, dwarfing Warner’s $149 million profit on $8.7 billion of sales. He also compares Netflix favorably to Disney, Lionsgate, NBCUniversal, and Sony, emphasizing its position as the largest media company by market cap. The company’s diversification—an ad‑supported tier launched in 2022 projected to generate about $3 billion this year, sports livestreaming, a growing video‑game portfolio, and experimental entertainment centers in U.S. malls—illustrates its evolving business model and multiple growth avenues.
Looking ahead, the author admits uncertainty about Netflix’s strategic direction over the next five years but stresses the firm’s “rule‑breaker” ethos and willingness to experiment. He plans to keep Netflix as the top pick for any new capital he deploys, viewing the current dip as another wide‑open buying window rather than a signal to sell. The piece concludes by urging readers to consider Netflix’s long‑term upside, citing the author’s own experience of buying during the 2011 Qwikster slump and achieving an 5,800% gain as of October 13, 2026.
⚡ Effects Interpreter
🌍World Economylow impact
What this means for you
- ▶Trade and investment between countries might shift a little if things escalate.
- ▶Growth projections drawn up in distant capitals may need a rethink.
🏙️Local Economylow impact
What this means for you
- ▶Higher earners and investors may feel the first, sharpest nudge here.
- ▶Local advisers might field a few extra calls once this news spreads.
🏦Rates & Bankslow impact
What this means for you
- ▶The cost of borrowing tends to shift gradually rather than in one leap.
- ▶Financial markets sometimes overreact to rate speculation before banks even respond.
❤️Healthlow impact
What this means for you
- ▶Stress levels in affected communities may tick up before they settle.
- ▶News like this can nibble at everyday calm more than people expect.
💷Wealthlow impact
What this means for you
- ▶Your financial cushion, however modest, is worth checking is still solid.
- ▶Compound growth has a way of smoothing over short-term noise like this.
🏠Housingmedium impact
What this means for you
- ▶A cooling or warming market usually takes months to fully show up in prices.
- ▶Bricks and mortar tend to hold steady while other markets swing about.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.