Netflix shares closed near $69 on October 20, down about 27% in 2026, and fell about 6% after hours to around $65 following third-quarter results. Revenue rose 12% year over year to $12.9 billion, operating income climbed 37%, and EPS grew 49% to $0.87. The company repurchased $4.8 billion of its shares in the quarter, and free cash flow rose about 8% to $2.9 billion. Revenue growth is still slowing, with fourth-quarter revenue guidance of about $13.4 billion, up 12%, and 2026 ad revenue now expected at around $2.7 billion, down from about $3 billion because some ad features are rolling out more slowly. With a P/E of around 17 to 18 versus about 19 for the S&P 500, the author argues the stock is worth considering and suggests building a position gradually.
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