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Chicago, IL – September 24, 2026 – Today, Zacks Investment Ideas feature highlights Netflix (NFLX - Free Report) .
Are Netflix Shares Still Worth Watching?
Netflix has been a somewhat complicated story for some time now, with shares unable to find consistent stability. Shares have underperformed the S&P 500 over the last five years by a wide margin, gaining roughly 28% over the period compared to a nearly 78% gain for the S&P 500.
Netflix's Volatile History
An initial plunge several years back largely reflected Netflix's sharp post-pandemic slowdown, as subscriber growth stalled after streaming demand tapered off and investors reassessed its growth picture.
Netflix shares made a remarkable recovery from the 2022 lows, jumping back on paid sharing, price increases, and its lower-priced advertising tier, which helped it regain the market's favor and set new all-time highs in 2025. That momentum has stalled in a big way throughout 2026, with shares down roughly 20% YTD.
Competition has also become a concern, as the company battles for viewer time amid rising streaming alternatives. It reflects an issue it never really had to face when it was the go-to platform, and social media has similarly impacted the company, with many consumers spending more time scrolling than watching streaming services.
Quarterly Results
Despite the rocky stretch, Netflix has continued to post solid revenue growth, expand its advertising business, and deliver stronger profitability. The company has also branched into live events, sports-related programming, and other content categories as it looks to broaden its overall appeal.
Revenue of $12.6 billion in its latest quarter grew roughly 13% YoY, keeping its double-digit growth rate trend intact.
Bottom Line
Netflix has navigated a wild several years, recovering remarkably from its 2022 collapse before falling out of favor again throughout 2026.
While the company remains financially healthy, the recent weakness reflects renewed questions about how much growth remains and whether it can keep commanding viewers' attention in an increasingly crowded entertainment landscape. The stock is currently a Zacks Rank #4 (Sell), and investors seeking near-term gains have better options available.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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Zacks Investment Ideas feature highlights: Netflix
For Immediate Release
Chicago, IL – September 24, 2026 – Today, Zacks Investment Ideas feature highlights Netflix (NFLX - Free Report) .
Are Netflix Shares Still Worth Watching?
Netflix has been a somewhat complicated story for some time now, with shares unable to find consistent stability. Shares have underperformed the S&P 500 over the last five years by a wide margin, gaining roughly 28% over the period compared to a nearly 78% gain for the S&P 500.
Netflix's Volatile History
An initial plunge several years back largely reflected Netflix's sharp post-pandemic slowdown, as subscriber growth stalled after streaming demand tapered off and investors reassessed its growth picture.
Netflix shares made a remarkable recovery from the 2022 lows, jumping back on paid sharing, price increases, and its lower-priced advertising tier, which helped it regain the market's favor and set new all-time highs in 2025. That momentum has stalled in a big way throughout 2026, with shares down roughly 20% YTD.
Competition has also become a concern, as the company battles for viewer time amid rising streaming alternatives. It reflects an issue it never really had to face when it was the go-to platform, and social media has similarly impacted the company, with many consumers spending more time scrolling than watching streaming services.
Quarterly Results
Despite the rocky stretch, Netflix has continued to post solid revenue growth, expand its advertising business, and deliver stronger profitability. The company has also branched into live events, sports-related programming, and other content categories as it looks to broaden its overall appeal.
Revenue of $12.6 billion in its latest quarter grew roughly 13% YoY, keeping its double-digit growth rate trend intact.
Bottom Line
Netflix has navigated a wild several years, recovering remarkably from its 2022 collapse before falling out of favor again throughout 2026.
While the company remains financially healthy, the recent weakness reflects renewed questions about how much growth remains and whether it can keep commanding viewers' attention in an increasingly crowded entertainment landscape. The stock is currently a Zacks Rank #4 (Sell), and investors seeking near-term gains have better options available.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.