The author notes that Netflix and ServiceNow shares have fallen more than 30% from their records while their businesses kept improving, and considers both worth holding through 2030. Netflix trades near $64, about 52% below its June 2025 record of $133.91, yet its operating income over the past four quarters reached about $15.6 billion, roughly 80% above the $8.6 billion of the four quarters through Q2 2024, and management guides to a 2026 operating margin of 31.5%. The main risk for Netflix is viewer engagement, as it cut its 2026 ad revenue forecast to around $2.7 billion from about $3 billion. ServiceNow shares, near $158, have risen about 14% since Oct. 13 ahead of its third-quarter report, with guidance for subscription revenue of $3,975 million to $3,980 million, up 20.5%, and cRPO growth of 19.5%. Reaching its 2030 target of over $30 billion in subscription revenue requires growth of around 17% a year from 2027 through 2030, and the author would watch whether cRPO growth falls far short of that 19.5% guidance.
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