Don't Sell Netflix: NFLX Is the One Streaming Pick I'd Add to Today
2026-10-04 23:15
•Brett Schafer •The Motley Fool
•••• •••••• Axe Cap view
Netflix: The Streaming Opportunity Worth Watching
Netflix is trading at a rare discount, showing fundamental strength despite sector noise.
Netflix has taken a beating, down some 50% from all-time highs even as the broader US market gained ground. Yet beneath the headline lies a business growing revenues by a healthy 13% year-to-date, expanding into new content like sports and live shows, and buying back shares aggressively. Its price-to-earnings ratio of about 21 is low for a company typically seen as growth-focused. For South African investors, Netflix exposure is via USD/ZAR; the company’s performance often lifts demand for dollars as global investors chase streaming assets. At these levels, it makes sense to buy Netflix selectively, betting on continued subscriber growth and steady monetisation through advertising. That said, should newer streaming rivals or changing consumer behaviours erode Netflix’s dominance faster than expected, the stock could fall further. this is just our opinion and not financial advice
Buy Netflix now as a long-term growth play via USD exposure, but trim if shares run too far ahead. Watch for competitor moves and tech shifts that could undermine subscriber trends.
- NFLX
- USD/ZAR
- Increased competition from other streaming platforms
- Potential shifts in consumer streaming habits reducing growth
6/10
Despite Netflix trading down 50% from highs while the S&P 500 is up 13% YTD, analyst argues the stock remains a strong long-term buy. Netflix shows solid fundamentals with 13% YTD revenue growth, expanding content into sports and live programming, and aggressive share buybacks at lower prices. Trading at a P/E of 21—historically low for the company—Netflix is well-positioned against legacy competitors and should benefit from sustained streaming demand growth.
Our take is based on reporting first published by The Motley Fool.