Netflix shares hit a 52-week low on Oct. 27, 2026, down 33% year to date, as revenue growth slowed for three straight quarters from 18% in Q4 2025 to 12% in Q3 2026, with the U.S. the weakest region. Co-CEO Greg Peters said management is focused on improving the U.S. content slate, while every region still grew revenue by double digits and Q3 churn improved year on year, even after recent price increases. Netflix generated nearly $16 billion in trailing-12-month operating income on $50 billion of revenue. The stock trades at about 17 times 2026 earnings estimates, a slight discount to the S&P 500's forward multiple of 19, and analysts expect earnings to grow about 21% annually. The author sees content execution as the main risk and does not expect a quick rebound, but views the stock as undervalued for patient investors.
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