Netflix Stock Plummets 42%: Should You Buy Ahead of Earnings on July 16?

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Netflix Second-Quarter Results

Netflix (NASDAQ: NFLX) will report its second-quarter earnings on July 16, 2026. The company has experienced a significant stock decline, with shares trading around $76—down approximately 42% from the peak of $130.23 last summer, despite a 16% year-over-year revenue increase to $12.25 billion.

The streaming service now boasts over 325 million paid memberships and expects its advertising revenue to double this year, reaching around $3 billion. Operating margins have improved to 32.3%, indicating strong financial performance. For the full year, Netflix forecasts revenue between $50.7 billion and $51.7 billion, a 12% to 14% increase with an operating margin near 31.5%.

Despite the robust growth, the stock has fallen due to high initial expectations and a previous failed acquisition attempt. Analysts are closely watching subscriber trends and key revenue metrics ahead of the earnings report, with the stock currently trading at about 23 times the expected earnings for the upcoming year.

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