Netflix (NASDAQ:NFLX | NFLX Price Prediction) may be the king of streaming services in the U.S., but Netflix stock isn’t getting the royal treatment in 2026 so far. Indeed, even while many large-cap technology stocks hover near their all-time highs, NFLX stock has let some long-term investors down lately.
Yet, as the Netflix share price falls below $100 and even below $90, dip buyers may find a prime opportunity here. On the other hand, NFLX stock might look like a falling knife that should be avoided as it trends downward.
It’s a tough call, but don’t worry. Today we’ll examine the facts and circumstances with a strong focus on the financial data — and in the end, you’ll be in a better position to decide whether to buy Netflix stock under $90.
Targeting $100 for Netflix Stock
It’s been disappointing, no doubt, for investors to witness the downfall of Netflix stock. The share price touched $134 in July 2025, only to recently slide into the $80s.
If there’s a silver lining, it’s that investors can now purchase NFLX shares at a discounted price. Currently, Netflix has a trailing 12-month price-to-earnings (P/E) ratio of 33.69x, which isn’t extremely high for a large-cap tech firm nowadays.
And by the way, not everyone feels bearish about Netflix right now even if the general sentiment is cautious. Notably, Phillip Securities analysts upgraded their rating on NFLX stock from Sell to Accumulate, which is similar to a Buy rating.
Furthermore, the Phillip Securities analysts raised their share-price target from $95 to $100, claiming Netflix is well positioned “structurally and financially” for long-term growth. In a research note, PhillipCapital analyst Helena Wang assured that Netflix “continues to demonstrate clear leadership in the video on-demand space and strong pricing power.”
The implication, certainly, is that NFLX stock is worth owning in the $80s. Still, don’t just take an analyst’s word for it; when all is said and done, the financial facts (rather than predictions) should guide your investment strategies.
A Year of Growth
Speaking of financial facts, it’s worthwhile to examine Netflix’s results for 2025 and compare them to 2024’s results. If there’s growth, then maybe the recent decline in NFLX stock is unwarranted.
Here are the essential data points. From the end of 2024 to the end of 2025, Netflix’s total revenue (100% of which comes from streaming revenue) rose 16% to $45.18 billion. That’s not blockbuster growth, but it’s respectable during a time when Netflix was still testing the waters with advertisement-supported streaming services.
During that same time frame, Netflix grew its operating income by 28% to $13.33 billion and its net income by 26% to nearly $11 billion. Now, we’re starting to see a positive trend for Netflix in terms of bottom-line results.
By the way, even though Netflix’s year-over-year total revenue only grew 16%, the company’s Asia-Pacific revenue increased 21% to $5.35 billion. The point is that Netflix remains a global streaming powerhouse that could tap into multiple lucrative markets at any given moment.
Additionally, Netflix’s cost of revenue only increased 11% to $23.28 billion, which is a slower growth rate than the company’s revenue growth rate. Therefore, Netflix appears to be reasonably disciplined when it comes to financial expenditures; hopefully, the company will continue with this pattern in 2026.
Simplifying the Buyout
Finally, our discussion of Netflix wouldn’t be complete if we didn’t mention the company’s in-process buyout of Warner Bros. Discovery (NASDAQ:WBD). It’s not a finalized merger quite yet, and there’s some regulatory resistance, but it appears likely that Netflix will eventually buy out Warner Bros. Discovery.
Granted, the buyout will cost Netflix an estimated $82.7 billion, which is nothing to sneeze at. However, for that price, Netflix will be able to combine its 300 million subscribers with HBO Max’s 128 million subscribers.
Thus, after merging with Warner Bros. Discovery, Netflix will become a behemoth in terms of streaming assets and subscribers. Besides, Netflix just made it easier to buy out Warner Bros. Discovery by amending its definitive merger agreement.
Specifically, Netflix’s pending acquisition of Warner Bros. Discovery will now be an all-cash transaction. This will, according to Netflix, simplify the “transaction structure,” provide “greater certainty of value” for Warner Bros. Discovery stockholders, and accelerate the path to a Warner Bros. Discovery shareholder vote.
This simplification of the buyout process, along with Netflix’s respectable financial growth, make NFLX stock a worthy asset to hold in 2026. Netflix stock might not be an absolute “must-own” right now, but the share price is likely to grow just like Netflix’s revenue and income have done.
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