Netflix (NFLX) shares are down 26% year-to-date while the broader market has risen, after the company lost its bid for Warner Bros Discovery to Paramount Skydance. Investors are concerned about weak engagement and rising competition from YouTube, with Nielsen data showing Netflix's U.S. TV viewing share falling from 8.8% to 7.8% over the year ending in July. The company recently cut 6% of its staff and replaced Chief Content Officer Bela Bajaria with Peter Rice. Ahead of its third-quarter report, guidance calls for revenue to rise 11.7% to $12.86 billion and EPS to grow from $0.59 to $0.82, its slowest growth in three years. The author says the stock may fall on the report, but argues the current sell-off could be a buying opportunity for long-term investors given Netflix's global scale.
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