Netflix's Regions Abroad Are All Growing Faster Than Its Home Market. I Don't Think That Makes the Stock a Bargain.
2026-10-13 07:14
•Daniel Sparks •The Motley Fool
•• • Axe Cap view
Netflix’s Slowing Growth Undermines the Hype
Despite faster growth outside the U.S., Netflix’s overall revenue momentum is weakening, making the stock less appealing.
Netflix’s international growth story looks impressive until you dig deeper. The U.S. and Canada market, where the company earns the highest revenue per subscriber, is slowing sharply—from 18% revenue growth to 10% in just two quarters. The overseas markets still grow faster but at a decelerating pace when you adjust for currency shifts. More importantly, Netflix generates far less revenue per subscriber abroad, between $7 and $11, compared to $17 in the US/Canada. For South African investors watching USD/ZAR, this global deceleration reduces appeal, as weaker dollar earnings will pressure local rand returns. The stock’s 43% drop from its peak might tempt some, but slower growth and the need for continuous heavy investment in content keeps risk elevated. This view could be wrong if Netflix finds a new growth driver or pricing power abroad surges to offset slower US sales. this is just our opinion and not financial advice
Sell or avoid Netflix exposure here; the global slowdown and weaker subscriber economics make it an unattractive bet. Prefer to watch USD/ZAR for better entry points or shift to local dividend growers like Sanlam or AngloGold Ashanti for steadier returns.
- NFLX
- USD/ZAR
- Sanlam
- AngloGold Ashanti
- Netflix surprises with stronger international pricing
- USD/ZAR moves sharply in favour of the rand
6/10
Netflix's U.S. and Canada revenue growth has slowed dramatically from 18% to 10% in just two quarters, while international regions show faster growth but are also decelerating on a currency-neutral basis. Despite international expansion, the analyst argues the stock is not a bargain given slowing revenue growth across all regions and lower revenue per member abroad compared to the home market.
Our take is based on reporting first published by The Motley Fool.