The Motley Fool Hidden Gems Investing podcast discusses Netflix's slowing growth: revenue still rose at a double-digit pace and margins came in somewhat better than guided, but ad sales slowed and the stock fell only about 3% during the session. The hosts see the quarter as a sign Netflix has entered a mature phase, and note the company has parted ways with its content chief. Full-year revenue growth is expected to ease to 13% in 2026 from 16% in 2025, and shares trade below 20 times earnings. The episode also lists topics including SpaceX's AI transformation, Musk's trillion-dollar ambitions, AI infrastructure risks and a Tesla-SpaceX merger, but the available transcript focuses mainly on Netflix.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NetflixearningsadvertisingElon Muskmergers and acquisitions
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/23/2026 | 372.21 |
| Change that session | -0.63% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Netflix Stock Has Always Overcome the Odds. Has It Finally Hit a Wall?
Netflix reported 325 million paid subscribers at the end of 2025, with churn at 2%, the lowest in the industry. In the third quarter, revenue rose 12% year over year, operating margin expanded from 28.2% to 34.6%, and EPS reached $0.87. This week, however, Netflix fired its content head and film unit head and laid off 1,000 workers, as revenue growth slowed to its lowest in three years amid weakness in the U.S. business. The company hired Disney alumnus Peter Rice to produce a major hit show and slightly lowered full-year revenue growth guidance to 13%, citing a delay in an ad product rollout. The stock is down 46% over the past year, with a P/E of 19. The author argues Netflix has not hit a wall and can rebound.
- Down Roughly 50% From Its Highs, Is Netflix Stock Finally a Buy?
Netflix (NFLX) shares have fallen roughly 50% from their all-time closing high of $133.91 on June 30, 2025, following the company's third-quarter report. Before the report, Netflix fired its chief content officer and announced its largest layoff since 2022, hiring former Disney executive Peter Rice as it struggled to produce U.S. blockbuster shows. In Q3, revenue rose 12% to $12.87 billion and adjusted EPS jumped 49% to $0.87, above the $0.82 analyst estimate compiled by LSEG. Netflix guided Q4 revenue to $13.4 billion but trimmed full-year revenue to $51.1 billion and cut its ad revenue forecast from $3 billion to $2.7 billion due to a slower ad rollout. The article argues that at a forward P/E of about 17 times 2027 estimates, the valuation now looks attractive.
- Should You Buy Netflix Stock After Its 51% Plunge?
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.
- Netflix Is Now Down 29% This Year: Is NFLX Stock Hopeless or Ready for a Rebound?
Netflix shares have slid to $66.29, down 29% year to date, even though Q3 2026 GAAP earnings of $0.87 per share beat the $0.8229 consensus and operating margin rose to 34.6% from 28.2%. Investors focused on a Q4 2026 revenue forecast of $13.4 billion and a cut to the 2026 advertising revenue outlook to about $2.7 billion from $3 billion, citing a slower ad product rollout. Netflix repurchased a record $4.8 billion of its stock and lowered its full-year free cash flow forecast to $12 billion from $12.5 billion due to a Q4 real estate transaction. Over the same period, Roku is up 47% and the Communication Services ETF (XLC) is down 9%. The article says the stock's next move depends on whether the ad business ramps up, particularly in the U.S.
- Is Netflix Stock a Buy Near Its 52-Week Low?
Netflix (NFLX) reported Q3 revenue of $12.9 billion (up 11.8% year over year), operating income of $4.5 billion (up 37.3%) and EPS of $0.87 (up 47.5%), but its Q4 revenue and earnings guidance fell short of analyst projections. The company also cut its full-year advertising revenue estimate by about $300 million from the previously expected $3 billion, citing a slower-than-expected rollout of some ad product capabilities, and the stock fell sharply after earnings to near its 52-week low. Management is not changing strategy and will rely on original content, especially in the U.S., and recently appointed Peter Rice, a former leader at Fox and Disney, as chief content officer. The article argues Netflix still has the largest streaming subscriber base in the industry, strong pricing power and viewer data, and can grow through live events and advertising, with its ad tier set to launch in 15 new countries in 2027. The author expects the company to address its execution problems over the medium term and says the stock may appeal to investors willing to stay the course.
- Can Netflix Stock Fall 50%?
Netflix (NFLX) stock has lost 46% over the past year while the S&P 500 returned 15.1%, and at $67.05 it sits 42.1% below its highest close of the past year, $115.75. Across 15 market shocks since 2007, Netflix fell an average of 27.8% versus 15.8% for the S&P 500, including a 72% drop during the 2011 US debt ceiling crisis. Recovery from its lowest close took a median of 2.1 months, but 22.0 months after 2011. Revenue reached $49.7 billion over the twelve months to September 2026, up 14.7%, but growth slowed to 11.8% in fiscal Q3 2026. Management cut its 2026 ad revenue forecast to $2.7 billion from $3.0 billion and its 2026 free cash flow forecast to $12.0 billion from $12.5 billion, and said fourth-quarter guidance includes roughly 120 basis points of margin drag tied to the staff cuts that news reports put at about 6%.
Related markets
Latest news
- On October 25, how much interest would a 100 million VND three-month deposit earn at Sacombank, SHB, HDBank, MB, VPBank, Techcombank and ACB?
For a 100 million VND deposit over three months, interest earned varies by bank and by whether the deposit is made at the counter or online. At the counter, VPBank offers the highest rate at 4.65% per year (1.1625 million VND), followed by SHB and Sacombank at 4.5% (1.125 million VND), while HDBank is lowest at 3.6% (900,000 VND). Online, VPBank again leads at 4.75% (1.1875 million VND), SHB and MB both pay 4.65% (1.1625 million VND), and HDBank is lowest at 4.3% (1.075 million VND). Interest is calculated as deposit × rate × 3/12, assuming the full term and interest paid at maturity. The article notes actual rates may change and depend on each bank's terms.
- Gold Prices Keep Plunging: What Should Investors Do?
World gold prices fell to their lowest level since July, and domestic gold prices also declined. Gold expert Trần Duy Phương said the drop does not mean gold has become cheap or that the long-term trend has changed, so investors should weigh their accumulation goals, cash needs and risk tolerance, and avoid acting out of fear of missing out. Dr. Nguyễn Trí Hiếu said there is not yet enough basis to conclude the market has bottomed, and holders should set in advance the maximum loss they can accept. Experts also advised carefully weighing borrowing to invest in gold, avoiding concentrating money in one channel, and keeping an emergency fund. For stocks, Đặng Trần Phục said a deep share price drop does not mean shares are cheap, and businesses should be assessed on revenue, profit and actual cash flow.
- Is Now a Good Time to Buy Lockheed Martin?
Lockheed Martin reported third-quarter results on October 22, with sales up 11% to $20.7 billion and earnings per share of $7.97, nearly $0.50 above analysts' expectations. The company raised its full-year outlook, now expecting sales above $80 billion and free cash flow of $7.8 billion to $8 billion, and increased its dividend for a 24th consecutive year. Backlog grew 27% to $292 billion, including multiyear deals for PAC-3 interceptors and 850 F-35 jets. The author argues the stock, though up more than 20% year to date, remains a solid choice for long-term investors, citing its backlog, guidance and steadily growing dividend, which yields about 2.5%.
- How Investors May Respond To Qualcomm Stock Earnings Outlook Concerns
QUALCOMM affirmed a quarterly cash dividend of US$0.92 per share for December 2026, while diluted EPS fell 16.67% year on year, with a P/E of 20.00, a dividend yield of 2.03% and weaker operating margins. The company is cutting its global workforce and faces pressure in smartphones and Apple-related revenue, while committing capital to data center chips, robotics and AI partnerships with Amazon and Apple. The article notes that two hyperscaler customers have production underway, with revenue targets for fiscal 2027 and 2029. Under the current analyst narrative, revenue is projected at US$60.0b and earnings at US$11.5b by 2029, based on 10.8% yearly revenue growth, and fair value implies about 10% potential upside to the current price. The most optimistic analysts forecast US$66.9b of revenue and US$11.8b of earnings by 2029.
- 1 Red Flag That Keeps Me From Buying AMD Stock
The author says they are not planning to buy AMD stock because it looks too expensive, even though AMD's products are now more competitive alternatives to Nvidia's AI computing units. AMD trades at 130 times trailing 12-month earnings and 67 times forward earnings, well above the 25 to 35 times the author considers typical for a big tech company in the AI race. At 32 times next year's earnings, the article argues the stock already prices in most of the growth expected for 2027, which could lead to a sizable sell-off or slower gains as the stock grows into its valuation. The article compares this with Nvidia, which trades at 27 times trailing earnings.
- Vietnam Stock Technical Analysis: Week 26-30/10/2026
The technical analysis for the 23/10/2026 session shows VN-Index rising for a fourth straight session and approaching the SMA 50-day and SMA 100-day lines, with trading volume still above average. The index is above the Bollinger Bands middle line, while the Stochastic Oscillator and MACD both turned up after crossing above their signal lines. HNX-Index traded sideways with a small-bodied candle and lower volume, and is testing the Bollinger Bands middle line, with MACD also rising after crossing its signal line. The article says that if these positive signals hold, the short-term outlook for both indices would improve.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.