Buy, Sell or Hold NFLX Stock After the Dip?

Quick Read

• Netflix (NFLX) is a Hold at $92.37; entry point not generous enough despite intact bull case.

• Netflix’s advertising business scaling rapidly toward $3 billion with 60% of new signups and 70% YoY advertiser growth.

• The analyst who called NVIDIA in 2010 just named his top 10 stocks and Netflix wasn’t one of them. Get them here FREE.

At $92.37, Netflix (NASDAQ:NFLX) is a Hold. The stock has been a top-tier compounder for a decade, but the post-earnings dip has not made it cheap enough to chase when better-priced opportunities exist.

Netflix runs the world’s largest paid streaming service with 325 million plus subscribers. Q1 2026 revenue grew 16.2% YoY to $12.25 billion and beat consensus, while EPS came in at $1.23 and also beat estimates. A $2.8 billion termination fee from the abandoned Warner Bros. acquisition flattered net income and free cash flow. The stock has since drifted, leaving NFLX down 16.9% over the past year while the S&P 500 climbed 29.2%.

Why bulls see a coiled spring

Netflix is guiding to 31.5% operating margin in 2026, up from 29.5%, with free cash flow near $12.5 billion. The advertising business is on pace to roughly double to $3 billion, with the ad tier capturing over 60% of new sign-ups in ads markets and advertiser count up 70% YoY to over 4,000 clients.

The analyst who called NVIDIA in 2010 just named his top 10 stocks and Netflix wasn’t one of them. Get them here FREE.

Valuation looks reasonable for a category leader at forward P/E of 29, with quarterly earnings growth of 86% YoY. Wall Street is overwhelmingly positive: 51 covering analysts, 37 are at Buy, 13 at Hold, and 1 at Sell with a $114.38 consensus target. Netflix resumed buybacks, repurchasing 13.5 million shares for $1.3 billion in Q1, leaving $6.8 billion authorized.

Why bears think the dip is a warning

The bear case rests on earnings quality and opportunity cost. The headline 82.77% net income jump leaned on a one-time Warner Bros. fee rather than core operations. Strip that out and the EPS miss is the real story. Q3 2025 also missed expectations on a Brazilian tax charge. Two ugly misses in three quarters from a company priced for precision is uncomfortable.

Then there is the rest of the market. NVIDIA (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) have outpaced Netflix on share-price performance this year. Insiders have logged 119 recent transactions on a net selling basis at NFLX, while NVIDIA insiders are net buyers.

Why patience makes sense at this price

Both sides have merit, but the case for action is thin. Netflix is growing, advertising is real, and 31.5% margins matter. The stock trades between its 50-day ($93.76) and 200-day ($104.66) moving averages, with a 52-week range of $75.01 to $134.12. That is the chart of a stock waiting for a catalyst rather than offering one.