Prediction: Netflix's Next Growth Engine Could Surprise Investors
Netflix shares have dropped 26% this year even as revenue keeps climbing, and a largely overlooked segment of its business could be the catalyst that catches investors off guard.
By Vandita Jadeja
Published October 8, 2026, 8:00am ET · 3 min read
Quick Read
NFLX has dropped 26% in 2026 while Q2 revenue grew 13%, supporting our $89.74 price target and roughly 31% upside from current levels.
Netflix's ad tier now drives over 60% of sign-ups in ad markets, with management flagging the pricing structure as near-term under-realized revenue growth.
Netflix's 19x forward P/E sits between DIS at 14x and ROKU at 39x, suggesting its valuation is reasonable relative to streaming peers.
It sounds nuts, but SoFi is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.
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Key Data
- Previous Close: $69.70
- Market Cap: 279.23B
- Day's Range: $69.72 - $71.52
- 52wk Range: $65.08 - $124.86
- P/E Ratio: 21.09
- Dividend Yield: N/A
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