Netflix (NFLX) stock is down about 55% from its June 2025 high. Bill Ackman called Netflix “an incredibly cheap stock,” arguing the market is focused on engagement, as viewing hours fall because the content mix is changing. Average viewing time per member fell 26% over three years, much of it going to YouTube, but Netflix said churn improved year over year in the third quarter, both globally and in the U.S. The stock trades at 17x forward earnings, a little over half its five-year average of 32x, while analysts expect EPS to rise to $4.51 in 2028 from $2.53 in 2025. The main risk is that less viewing turns into cancellations, and Netflix’s 2027 guidance in January is the next test.
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