Netflix reported third-quarter 2026 revenue of $12.9 billion, up 11.8% from a year earlier and its slowest growth in three years, and its shares fell 6% after hours and are down 51% from their record high. The company cut its 2026 ad revenue forecast to $2.7 billion from $3 billion, citing slower rollout of some advertising capabilities. Positives include the appointment of Peter Rice as chief content officer and continued investment in live sports. The author argues the stock trades at a P/E of 18.5, below its five-year average of 38.8 and the S&P 500's 23.5, and that investors willing to hold for 5 to 10 years could do well.
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