Netflix stock is trading at 17.3x forward earnings, near its lowest level in a decade and far below its 10-year median of 48.4x. The decline reflects lower-than-expected viewer engagement, a cut to its fiscal 2026 advertising revenue guidance to $2.7 billion from $3 billion, and an increasingly competitive streaming market. Still, the third quarter showed strengths: revenue rose 11.8% year over year to $12.9 billion, matching estimates, and EPS jumped 47.5% to $0.87, above expectations. The author argues Netflix is now a mature media company, so valuing it well below the 48.4x median typical of growth companies makes sense. The author says the stock could deliver strong returns over the next five years but is not yet a generational buying opportunity given the remaining uncertainty.
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