Is Netflix a Buy Ahead of Earnings? It Looks Like It

Core Viewpoint - Netflix's stock has experienced a significant decline of approximately 30% since reaching all-time highs last summer, erasing its 2025 gains, leading to concerns among investors about its performance [2][6]. Group 1: Stock Performance and Market Sentiment - The recent selloff in Netflix's stock is attributed to multiple factors, including a missed earnings per share (EPS) report and uncertainty surrounding its proposed acquisition of Warner Bros. Discovery, which has raised concerns about debt levels and execution risks [3][6]. - Technical indicators suggest that the stock may be oversold, with the relative strength index (RSI) around 29, indicating potential exhaustion of selling pressure [4]. - The stock's price-to-earnings (P/E) ratio has reached its lowest level in years, suggesting a significant reset in expectations and presenting a potential buying opportunity for long-term investors [5]. Group 2: Future Outlook - With the upcoming earnings report, there are indications that much of the negative sentiment may already be priced into the stock, making it a potential buy-the-dip opportunity [4][6]. - Analyst sentiment remains broadly bullish, indicating that the market may have already absorbed much of the bad news related to Netflix [6].