Is Netflix Stock a Buy in 2026?

With shares up by lone 3.7% implicit the past 12 months, Netflix (NASDAQ: NFLX) banal has profoundly underperformed the tech-heavy Nasdaq Composite, which has risen by astir 18% implicit that clip frame.

This disparity is astir apt due to the fact that the streaming elephantine is little exposed to the generative artificial intelligence (AI) megatrend, which has boosted the maturation and valuations of different large tech companies. Investors are besides tense astir its program to get Warner Bros. Discovery, which (if the woody gets to the decorativeness line) could weaken its balance sheet. Let's research what 2026 mightiness person successful store.

Video streaming whitethorn look similar aged quality successful large tech, but Netflix's third-quarter results amusement determination is plentifulness of country for further expansion. Revenue jumped 17% twelvemonth implicit twelvemonth to $11.5 billion, driven by spot successful halfway markets similar the U.S. and U.K. The institution has seen monolithic occurrence this twelvemonth with archetypal programming and sports events specified arsenic the Canelo Álvarez vs. Terence Crawford boxing match, which was the most-viewed men's title combat of the period (with 41 cardinal viewers). The level followed that up with the Jake Paul vs. Anthony Joshua fight, which drew 33 cardinal views.

Sports similar boxing person traditionally relied connected a pay-per-view model, wherever cablegram subscribers wage a level interest for entree to each circumstantial contest. Netflix has convincingly disrupted this concern model, creating a immense gross accidental and enhancing its economic moat successful the process.

Netflix besides has plentifulness of country to pull a larger assemblage to its room of archetypal movies and TV shows. The company's ample contented fund volition let it to vie successful emerging markets similar India, the Asia Pacific region, and Latin America. And portion the North American and Western European markets are mature (in presumption of subscribership), it inactive has plentifulness of country to make much gross per idiosyncratic by selling much advertizing space. Analysts astatine J.P. Morgan estimation that this concern could turn to beryllium worthy a whopping $4.2 cardinal successful 2026.

Netflix made a splash successful aboriginal December erstwhile it agreed to bargain astir of Warner Bros. Discovery for an enterprise value of $82.7 cardinal (this includes some indebtedness and equity). The woody volition springiness Netflix entree to Warner Bros.' subsidiaries similar HBO alongside iconic franchises similar Harry Potter, the DC Universe, and The Lord of the Rings -- supercharging the combined companies' video room and opening up opportunities for Netflix to make much archetypal contented based connected established intelligence property.