Why January 2026 Is the Perfect Time to Buy This Beaten-Down Tech Stock

There has been a batch of binge selling erstwhile it comes to Netflix (NASDAQ: NFLX) successful caller months. Shares of the premium person among streaming work stocks person plummeted 36% since hitting an all-time precocious 7 months ago. The marketplace has risen 11% successful that time.

Netflix executed a 10-for-1 banal divided successful November -- a determination that typically accompanies a rallying stock terms -- but that evidently isn't the lawsuit here. It doesn't instrumentality agelong to interruption down what's been holding Netflix banal backmost since its precocious June peak. The amusement elephantine has cranked retired 3 poorly received quarterly reports successful that time. It has moved little aft each of those fiscal updates, but that isn't the biggest contributor to the slide.

The existent crushed Netflix is falling -- arsenic stocks successful wide and consumer-facing businesses successful wide determination higher -- is its winning bid for the juiciest assets of Warner Bros. Discovery (NASDAQ: WBD). The marketplace isn't blessed to spot Netflix paying $72 cardinal successful currency for its streaming and workplace assets aft its little invaluable businesses are spun disconnected to Warner Bros. Discovery shareholders.

It volition beryllium the largest Netflix acquisition, by far. Bears volition reason that it's a motion that Netflix is consenting to wage apical dollar for a banal that was worthy astir a 3rd of its existent terms a twelvemonth agone due to the fact that it's desperate. It needs caller ammo to support putting retired double-digit gross growth. However, with the banal already giving up much than $72 cardinal successful marketplace headdress since archetypal raising its bidding paper for Warner Bros. Discovery -- much than $100 billion, really -- is that fair? Right now, it's similar buying Netflix and getting Warner Bros. Discovery for free.

The banal is already showing signs of stabilizing. Netflix slipped lone 2% the time aft posting fourth-quarter results past week, the smallest post-earnings dip of the past 3 quarters. Revenue roseate 18% successful the quarter. You person to spell backmost to the outpouring of 2021 to find stronger year-over-year top-line growth.

Guidance has Netflix increasing 12% to 14% this year, but we've seen Netflix purpose little than eventual world before. A twelvemonth ago, Netflix was modeling 12% to 14% successful gross maturation for each of 2025. It came done with a 16% increase. Analysts spot net per stock rising 24% this twelvemonth and 22% travel 2027. You tin bargain Netflix for 23 times adjacent year's projected earnings. It's a humanities bargain for a banal that has earned a close to a marketplace premium. With 325 cardinal subscribers worldwide -- and continuing to find ways to turn its scope -- Netflix doesn't enactment retired of favour for long. Now is simply a cleanable clip to see buying oregon adding to a Netflix position.