Netflix Inc. (NASDAQ:NFLX) shares have pulled back sharply, leaving the stock trading at its lowest valuation multiple in nearly four years at 25 times earnings.
While Wall Street frets over a perceived growth slowdown, Futurum Equities’ Shay Boloor argues the market is misreading the business, presenting what he calls a massive “opportunity” right now for savvy traders.
Financial Flywheel And ‘Pricing Power’
Boloor emphasizes that despite the recent stock decline, “Netflix is clearly not a broken company.” Instead, the streaming giant continues to deliver exceptional execution, with year-over-year revenue climbing 16% and operating income growing 18%, supporting expanding margins.
“To me, that retention data is probably the most important data point… Netflix raised prices, and retention improved anyway. That is real pricing power to me,” Boloor noted.
This dynamic feeds an intact flywheel, in which robust engagement supports margins and directly funds future content.
Monetizing Without The ‘AI Spice’
A major critique dragging down the stock is that Netflix lacks the heavy AI infrastructure narrative dominating the current bull market. However, Boloor views this absence of speculative spending as a major benefit.
Netflix doesn’t need “AI spice” attached to its identity; instead, it can seamlessly integrate AI as a “margin and monetization tool” to optimize content production and advertising efficiency.
Furthermore, the company is rapidly scaling its ad-supported tier—now boasting over 250 million users up from 94 million a year ago—and expanding into repeatable live sports to secure essential “appointment viewing”.
Finding A Technical Bottom
With a price-to-earnings ratio of 24.83, according to Benzinga, NFLX is also hitting a critical technical juncture. The stock recently retreated toward its 200-week exponential moving average (EMA) of 94.94, according to Benzinga Pro—the support zone defended during past acquisition dramas.
While technical indicators show a prolonged short-term downtrend, this valuation compression, combined with stable underlying numbers, suggests a powerful risk-reward setup.
As Boloor concludes, the market remains temporarily hyper-fixated on what Netflix isn’t, completely overlooking what it “continues to do exceptionally well”.
How Has NFLX Performed In 2026?
Shares of NFLX have declined by 17.92% year-to-date. It closed 2.24% lower at $76.96 apiece on Wednesday, and it was up 0.44% in overnight trading.
Over the last month, NFLX stock was down 11.56%, and it fell 18.81% over the last six months; the stock was 36.95% lower over the year. Benzinga’s Edge Stock Rankings indicate that NFLX maintains a weak price trend in the long, medium, and short terms, with a solid growth and quality score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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