NFLX
Netflix, Inc.

Netflix, Inc.NFLX

Communication Services · Entertainment
66.39USD
+4.68%
Nov 05, 2026
NFLX overview ready
Global subscription streaming entertainment platform for consumers
Netflix is a global premium-streaming publisher that monetizes its entertainment audience primarily through subscriptions while building a second revenue pool from advertising-supported plans, ad sales, and live-event inventory.
Theme not measured
No economic group is assigned yet.
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Intense competition from other streaming platforms.
Market Nov 4Price action Nov 5Research Nov 1

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction3.4BusinessPerformance5.0BusinessQuality8.5Valuation7.4ThemeMomentum—Mixed — Revenue is still growing (+12% YoY), but growth has slowed for 3 consecutive quarters, down from +18%. Diluted EPS is up 48% year over year at $0.87. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
No economic group yet — pending research
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$258.5B
Provider figure at the stated date
Avg Volume (60D)
40.5M
60 sessions
Revenue Growth YoY
+11.8%
Latest quarter
Gross Margin
+50.7%
Trailing twelve months
Operating Margin
+34.6%
Trailing twelve months
Free Cash Flow Yield
+9.9%
Provider figure at the stated date
P/E
17.9x
Provider figure at the stated date
EV / EBITDA
16.6x
Provider figure at the stated date
EV / Sales
5.3x
Provider figure at the stated date
Market metrics as of Nov 1, 2026

Business Performance

Mixed

Revenue is still growing (+12% YoY), but growth has slowed for 3 consecutive quarters, down from +18%. Diluted EPS is up 48% year over year at $0.87.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthSlowing
+12%
$12.9B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +18%
  2. +16%
  3. +13%
  4. +12%
Earnings growthGrowing
+48%
Diluted EPS $0.87 vs $0.59 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. +86%
  3. +11%
  4. +48%
Operating marginExpanding
34.6%
+6.4 pp YoY

Business Quality

8.5 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say cheap; peers is the dissenting view.
This company has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces.

Company Research

Thesis
Netflix is a global premium-streaming publisher that monetizes its entertainment audience primarily through subscriptions while building a second revenue pool from advertising-supported plans, ad sales, and live-event inventory.
Opportunity
Moderate opportunity
The migration of video advertising budgets from linear television toward premium streaming platforms with scalable, addressable inventory, increasingly supported by live programming and improved ad-tech capabilities.
Key risk
Intense competition from other streaming platforms.

Economic classification

Loading the economic classification…

Business & Markets

Communication Services · Entertainment
What they do

Netflix, Inc. operates a global streaming entertainment service providing TV series, films, documentaries, games, and live programming accessible via internet-connected devices.

How it earns

The company generates revenue primarily through subscription-based streaming memberships.

Products & services
Streaming TV series
Feature films
Documentaries
Games
Live programming
Customers & end markets
Individual consumers
Households worldwide
Market position

Market leader in subscription-based streaming entertainment.

Demand drivers
Low cyclicality

Demand for streaming entertainment is relatively stable and less sensitive to economic cycles.

Peers

Companies validated as economically comparable to NFLX — similar business, revenue model and scale.
PRICE ACTIONVALUATIONTHEME
The Walt Disney CompanyEarly Trend — Daily AdvanceFair6.0MediumUnavailableNot in RS poolLocked$118.95+4.18%