Company Overview - Netflix, Inc. operates as a subscription streaming service and production company, delivering entertainment services in approximately 190 countries with a market cap of $337.5 billion [1] Stock Performance - NFLX shares have underperformed the broader market, declining 19.4% over the past year, while the S&P 500 Index has increased nearly 14% [2] - In 2026, NFLX stock is down 14.5%, contrasting with the S&P 500's marginal rise on a year-to-date basis [2] Comparison with Industry Peers - Compared to the Vanguard Communication Services Index Fund ETF, which gained about 14.4% over the past year, NFLX's performance has been notably weaker [3] Recent Developments - The stock struggles due to a revised deal with Warner Bros. Discovery, Inc., which could enhance content and competitiveness but faces regulatory scrutiny and competition from Paramount Global [6] - Intense competition in the streaming market is limiting the stock's recovery [6] Financial Performance - In Q4, NFLX reported an EPS of $0.56, beating Wall Street expectations of $0.55, with revenue of $12.1 billion surpassing forecasts of $12 billion [7] - The company expects full-year revenue to be in the range of $50.7 billion to $51.7 billion [7] Earnings Expectations - For the current fiscal year ending in December, analysts expect NFLX's EPS to grow 23.7% to $3.13 on a diluted basis [8] - The earnings surprise history is mixed, with the company beating consensus estimates in three of the last four quarters [8] Analyst Ratings - Among 44 analysts covering NFLX stock, the consensus rating is a "Moderate Buy," based on 26 "Strong Buy" ratings, four "Moderate Buys," 13 "Holds," and one "Strong Sell" [8]

Core Insights - Netflix, Inc. (NFLX) is a leading subscription streaming service and production company with a market cap of $442.4 billion, operating in approximately 190 countries [1][2] - NFLX is classified as a "mega-cap stock," reflecting its substantial size and influence in the entertainment industry, with a strong brand and extensive content library [2] - The company has received critical acclaim for its original productions, winning 30 Emmy trophies in 2025 [2] Stock Performance - NFLX shares have decreased by 22.2% from their 52-week high of $134.12, reached on June 30, and have fallen 14.3% over the past three months [3][4] - Year-to-date, NFLX shares have risen by 17.1% and increased by 20.6% over the past 52 weeks, outperforming the Dow Jones Industrials Average [4] - The stock has been trading below its 200-day moving average since late October and below its 50-day moving average since mid-July [4] Financial Results - In Q3, NFLX reported an EPS of $5.87, which was below Wall Street's expectation of $6.89, and revenue of $11.51 billion, slightly missing the forecast of $11.52 billion [6] - The company's strong performance is attributed to record ad sales, engagement, and popular content, with significant viewing shares in the U.S. (8.6%) and U.K. (9.4%) [5] - Management anticipates ongoing subscriber growth and expansion in the ad business, supported by a robust content pipeline for 2025 and 2026 [5]