The author says he bought Netflix shares in October 2011 during a price drop tied to the Qwikster episode, and that the stock has gained 5,800% as of Oct. 13, 2026, remaining the largest holding in his personal portfolio. Netflix shares are down 42% over the past year and trade at 22 times trailing earnings, while analysts' average 1-year price target of $92 per share sits 30% above current prices. The article compares Netflix with Warner Bros. Discovery: in the last earnings report before the Skydance merger, Netflix earned $3.4 billion in net income on $12.6 billion in revenue, versus Warner Bros. Discovery's $149 million in net income on $8.7 billion in sales. It also cites expectations that Netflix's ad-supported plan should deliver about $3 billion in revenue this year, and the author says he has no intention of selling and sees the price decline as a buying opportunity.
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