Jason Snipe, CIO, Odyssey Capital AdvisorsNetflix Inc.NFLXBUYSep 23, 2026

He's a big fan (and a big fan of his son who's an actor ;). Transformed the way we looked at television, synonymous with streaming. But now so many other streamers in the market. Doesn't have the tech edge anymore, would have to reinvent themselves.

He bought more, though it's a small position, because it traded down on a downgrade--but this was piling onto a stock that already had a tough time. He thinks for a trade, this will bounce. He though their last quarter was good, though the market didn't. With everybody so negative on Netflix, he thinks the bad news is already baked in.

He sold it last June, and NFLX is -17% since. He is bearish on all streamers, because they're getting challenged on margins, whereas the growth is in live entertainment and sports. But that is very experience to acquire. So, the streamers will continue to raise prices.

He's buying more shares. Investors worry NFLX is losing share to YouTube and TokTok, while Paramount and Warners will likely merge. But NFLX still has the largest user base in the world and they make the most money per engagement. This allows them to add more content than their peers. They still grow revenues and profits. Still likes it.

He sold it recently and bought it back. Thinks it's safe. Not sure about the upside, but the downside has been taken out. Other streamers are raising prices which makes NFLX a value player.

Proven pricing power. ROE has been solid. Earnings should be up this year ~40%. Now above 200-day MA; the rising 200-day should provide good support. RSI starting to improve. Use the 200-day as your stop. Investor made a good buy.

(Note the short timeframe.)  The market loved it for a while after the abandoned WBD deal. Then market started to focus on competition. But people aren't cancelling subscriptions; in fact, just the opposite. Trades at 20x 2027 PE for double-digit growth, terrific balance sheet. Boundless opportunities, sees so much upside.

The PE has fallen from 40x PE to 22.5X forward PE, so he's enthusiastic. They have a huge content problems, maybe bring in live programming. The stock is cheap now. 

200-day MA and stock price moving lower. Cashflow continues strong. Valuation's pretty cheap at 21x forward PE. 23-25% earnings growth rate. Still has value, so he's holding on. Still global streaming king. Story's not broken.

It will drift higher to the mid-80s by year end.

Was upgraded today. He added to it last week. It doesn't need a multiple expansion to recover. The PE is below 20x, cheap. It's about content, which has lagged and needs to improve. He thinks it will.

North American growth is slowing with its product saturated, though internationally it is growing nicely but it's lower margin. Also, it's seeing the classic transition from growth to value investors.. NFLX was a high-growth company at a high multiple, but has slowed down. It's a hold, because NFLX is a legitimate franchise, and the 20x PE is fair, though it likely will decline as growth investors exit. Also, movies and shows are a capital-intense business.

Its earnings and competition are dragging it down. Many people are getting tired of binge-watching. They aren't growing the business as fast as before after massive growth. It's the law of diminishing returns. Warners is up for sale, but carries a lot of debt--whoever buys them must absorb that debt. He won't own any streamers.

It's too cheap to ignore. Is down 44% in the past year, including -9% since reporting last Thursday. It's gone from market darling to pariah. Last week, sales missed expectations slightly and EPS came in-line. Worse, free cash flow was much lower than expected due to higher tax payments and termination fees when Warners walked away from the merger. Guidance for Q3 was lowered as was the full-year forecast. But it's on pace for 13-14% revenue growth this year with a 31.5% operating margin and $12.5 billion free cash flow Companies kill for these numbers. In Q2 2025, growth was 16%, and growth is now slowing down. Also, they stopped providing quarterly subscriber numbers in Q1 2025, which the market didn't like. They lack a show like Squid Games to drive subs growth. Subscribers have jump from streamer to streamer. Warners paid Netflix a $2.88 billion termination fee, but the street now sees that Netflix needed Warners more than vice versa. Overall, the stock has nearly been cut in half, so he's interested in it. Netflix bought back $4.7 billion in shares during Q2, the biggest ever, with $27 billion remaining to buy.  JP Morgan projects NFLX's compound annual growth rate to be 24% EPS, and 22% in free cash flow. NFLX trades at a discount to the S&P, though Nvidia does too as do others. If engagement keeps slower and revenue falls below 10%, shares will keep declining. However, this is not a broken company, but one of the best anywhere and its numbers are still better than most. Ad revenue this year should double to $3 billion. The gap between the economics between the ad and ad-free plans are narrowing. At 19x PE, you get a well-run company on sale. Part a tranche now and add more on more weakness.