Netflix Stock Is Down 26% in 2026. Is This the Ultimate Buying Opportunity, or Is More Downside Ahead?

Netflix Stock Is Down 26% in 2026. Is This the Ultimate Buying Opportunity, or Is More Downside Ahead? Justin Pope, The Motley Fool Tue, July 21, 2026 at 11:35 AM GMT+2 4 min read NFLX NVDA Shares of Netflix (NASDAQ: NFLX) recently closed at approximely $69, putting the streaming giant down 26% in 2026.

The slide is part of a longer and more painful 48% decline over the past year or so. Netflix has generated life-changing returns for investors, so it has a strong reputation on Wall Street and hasn't fallen this far very often in the past decade. But catching falling knives can be a dangerous game.

What seems like the ultimate buying opportunity can easily punish overeager buyers. Here's what to make of the company after its latest plunge following its second-quarter earnings report release last week. Missed Nvidia in 2009?

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  Continue » Image source: The Motley Fool. Wall Street is sounding the alarm on slowing growth The market saw Netflix as a fast-growing darling for years. However, those days might be over.

Netflix's revenue growth is suddenly slowing. Revenue grew by 17. 6% in the fourth quarter of 2025, followed by 16.

2% in the first quarter of 2026, and 13. 4% in the second quarter. Making matters worse, management guided for only 11.

7% growth in the current quarter, yet another deceleration. Wall Street tends to emphasize quarterly performance, which is working against Netflix at the moment, to be sure. That's not always healthy, especially for long-term investors.

That said, Netflix's slowing growth is definitely becoming a trend. It's worth considering the competitive landscape Netflix must contend with, which includes video games and social media, not just other streaming services . Unfortunately, it's not yet clear whether this is a blip for Netflix or if the business has peaked.

Making that distinction will be even harder due to Netflix's decision to offer less transparency into subscriber and viewership data. Here's why the selling might be overdone Multiple things can be true. Netflix absolutely deserves a lower valuation if its growth is stalling.

At the same time, the market might be taking things too far. Even as parts of the business mature, Netflix could still have a very long runway to monetize its users. The company has delved into live sports over the past few years and is monetizing price-sensitive subscribers through ad-supported memberships.

It's also worth mentioning that Netflix hasn't had very many blockbuster hits recently. That's not ideal, but the next Squid Game or KPop Demon Hunters sensation could suddenly reignite growth at any given moment. Story Continues In the meantime, the stock has fallen to just 19 times 2026 earnings estimates.

Analysts still see Netflix growing earnings by an average of 21% to 22% annually over the next three to five years. Buying Netflix here is probably a home run if the company grows even close to that. Even assuming annualized growth comes in closer to 10%-12%, the stock could still deliver solid long-term returns from its current price point.

Is this the ultimate buying opportunity? Perhaps not; the stock could easily go lower. But it's easy to like Netflix stock here.

Should you buy stock in Netflix right now? Before you buy stock in Netflix, consider this: The Motley Fool  Stock Advisor  analyst team just identified what they believe are the  10 best stocks  for investors to buy now… and Netflix wasn't one of them.  The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.

Consider when  Netflix  made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,  you'd have $371,842 ! * Or when  Nvidia  made this list on April 15, 2005...

if you invested $1,000 at the time of our recommendation,  you'd have $1,244,783 ! * That performance is why people listen. With a track record of  beating the S&P 500 by 4x ,  Stock Advisor  offers a distinct advantage.

Don't miss the latest top 10 list, available with  Stock Advisor , and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 21, 2026. Justin Pope has no position in any of the stocks mentioned.

The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy . Netflix Stock Is Down 26% in 2026.

Is This the Ultimate Buying Opportunity, or Is More Downside Ahead?