Netflix shares are down about 51% from their high as of Oct. 21, after the company cut around 1,000 jobs (6% of headcount) and forecast fourth-quarter revenue growth slowing to 11.5% year over year, sending the stock down 6%. The article notes that since its 2002 IPO, Netflix has fallen at least 50% from a recent high five times, and after losing 1.2 million subscribers in the first half of 2022, the stock rebounded 137% in the 12 months following its Q2 2022 report. The author argues the company has entered a more mature phase: 2026 advertising revenue is now projected at 2.7 billion USD, down from 3 billion USD, viewing hours rose just 2% in the first six months of 2026, and Netflix stopped reporting subscriber numbers in early 2025. Netflix trades at a P/E of 18.9, compared with an average of 93.3 over the past 10 years, but the author believes a lower valuation is justified and a recovery may be slower than in past episodes.
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