Netflix and ServiceNow Have Fallen More Than 30% From Their Records. Both Are Stocks to Buy and Hold Through 2030.
Netflix (NFLX) and ServiceNow (NOW) stocks have fallen 52% and 32% from their records, respectively. Netflix's operating income grew 80% in the past year, with guidance for continued margin expansion. ServiceNow's stock is up 14% recently, awaiting Q3 results. Both companies are seen as long-term holds, with Netflix considered cheaper and less dependent on a single report.
How this was made
The 30-second read
Why it matters
Both companies provide new operating margin and revenue guidance, which could reprice their valuations.
Market read
Guidance updates for two large‑cap tech stocks may influence investor positioning in the sector.
What to watch
Potential regulatory scrutiny of streaming content and macro‑economic headwinds could dampen upside despite strong guidance.
Background
The article compares two high‑profile tech stocks that have fallen sharply from record levels, arguing they are buying opportunities based on fresh guidance.
Ticker impact
Netflix disclosed 2026 operating margin guidance of 31.5% and operating income growth over 20% for the year, new guidance not previously reported.
likely upward pressure as investors price in higher margins and income growth
Fresh margin and income guidance is material and not yet priced in, creating a buying opportunity.
ServiceNow provided Q3 subscription revenue guidance of $3.975‑$3.980 bn and cRPO growth of 19.5%, fresh numbers ahead of its earnings release.
potential modest upside if cRPO growth meets guidance, otherwise pressure
Guidance is positive but the stock has already run; market reaction will depend on actual results.
Market effects
Both streaming and enterprise‑software sectors may see renewed interest as guidance highlights profitability trends.
U.S. equity markets could see modest gains in tech‑heavy indices if guidance lifts sentiment.
Limited to U.S. listed tech names; no broader macro impact.
Counterpoint
The stock price declines may reflect deeper concerns about subscriber growth and AI competition that guidance does not fully address.
Key entities
- companyNetflix
Streaming video provider
- companyServiceNow
Enterprise workflow software vendor
