Netflix’s Yearly Decline Continues: Is It Time to Invest at 22 Times Earnings?

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Netflix’s Q2 Revenue and Stock Performance

Netflix (NASDAQ: NFLX) reported a second-quarter revenue of $12.6 billion, reflecting a 13% year-over-year increase and aligning with management’s forecast. However, shares fell approximately 7% on Friday, closing at $68.95, following a trend where the company’s stock has lost over 40% of its value in the past year and is down about 46% from its 52-week high of $126.71.

For the third quarter, management anticipates revenue growth to decelerate to around 12%. The operating income was reported at $4.2 billion, an 11% increase year-over-year, with a narrowed operating margin of 33.4%. The company has projected full-year revenue between $51.0 billion and $51.4 billion for 2026, indicating growth of 13% to 14% for the year.

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