Netflix Slides 17% as Valuation Worries Grow
Yahoo Finance ·
Netflix Slides 17% as Valuation Worries Grow Faizan Farooque Fri, July 3, 2026 at 5:21 PM EDT 1 min read NFLX This article first appeared on GuruFocus . Netflix Inc. ( NFLX , Financials ) has had a rough year on Wall Street . Shares are down about 17% and recently touched a 52-week low, putting a fresh spotlight on a familiar question: Is the stock still too expensive? Warning! GuruFocus has detected 3 Warning Signs with MU. Is NFLX fairly valued? Test your thesis with our free DCF calculator. The concern is easy to see in the numbers. Netflix trades at about 21.7 times forward non-GAAP earnings. The sector median is closer to 13.3 times. That premium leaves less room for disappointment if growth slows or costs rise. The stock's recent trading pattern has not helped. Shares remain below their 50-day moving average of $82.63, while several technical indicators continue to point to near-term weakness. That makes the current setup less straightforward than the stock chart suggests. Netflix faces rising content costs and plenty of competition, but its ad-supported plan and international business continue to give it room to grow. Wall Street remains upbeat. Of 27 recent analyst ratings, 20 are Buys and seven are Holds. The average price target stands at $114.99.
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