Netflix Is 43% Below Its 52-Week High at 20 Times Forward Earnings. Where Will the Stock Be in 3 Years?

Netflix is trading at $72.39, about 43% below its $126.71 52-week high, and the market multiple has compressed to roughly 20 times forward earnings. After the company’s second-quarter results in mid-July, growth is still positive but slowing: revenue rose 13% year over year to $12.6 billion, while growth decelerated from 16.2% in Q1 to 13.4% in Q2 and is guided to about 12% in Q3. For the full year, Netflix expects $51.0 billion to $51.4 billion in revenue and a 31.5% operating margin. Management also projects ad revenue roughly doubling to ~$3 billion in 2026 and continued share repurchases after a $2.8 billion termination fee related to a halted Warner Bros. Discovery deal.