Netflix Is Down 40% From Its All-Time High. With No More Subscriber Numbers to Hide Behind, Is the Stock Still a Good Value?
Netflix's stock has fallen 40% from its June 2025 high of $133.91 to around $80. The decline follows the company's decision to stop reporting subscriber numbers, slower revenue growth, and reduced disclosure of engagement metrics. Despite this, Netflix expects 13%-14% revenue growth and a 200 basis point margin expansion for the full year, with analysts forecasting 42% EPS growth.
How this was made
The 30-second read
Why it matters
Guidance and bid termination reshape growth expectations and cash‑flow outlook.
Market read
The stock's 40% decline and new guidance are central to trader decisions on NFLX.
What to watch
Potential upside from ad‑supported tier expansion and upcoming content pipeline.
Background
Netflix stopped reporting subscriber counts in Q1 2025 and shifted focus to revenue and cash flow metrics.
Ticker impact
Netflix disclosed termination of its $2.8 B bid for Warner Bros. Discovery and provided 2026 revenue guidance of 13‑14% growth.
Potential further downside as investors reassess valuation; short‑term bounce possible on cash‑flow boost.
Guidance below expectations and loss of a strategic acquisition offset the cash‑flow benefit.
Market effects
Streaming sector may see valuation pressure as peers lack similar cash‑flow boost.
U.S. tech indices could face slight drag.
Limited; impact confined to media/entertainment stocks.
Counterpoint
The breakup fee and improved cash flow could make NFLX a buying opportunity at lower valuations.
Key entities
- companyWarner Bros. Discovery
Target of the terminated acquisition bid.
