Should You Buy Netflix Stock Before Its Earnings Report After Hours Today?
By Jeremy Bowman, The Motley Fool
Tue, October 20, 2026 at 4:50 AM UTC
Key Points
- Netflix has faced challenges in 2026 due to declining user engagement and underwhelming original content.
- The company recently laid off 6% of its workforce and parted ways with Chief Content Officer Bela Bajaria.
- Netflix's global reach gives it a competitive edge.
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Netflix (NASDAQ:NFLX) has been a disruptor in the entertainment industry, but its recent performance indicates it might be losing ground. The stock has declined by 26% year-to-date, despite the market's overall growth, and Netflix missed out on the Warner Bros Discovery acquisition in favor of Paramount Skydance.
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Investors' Concerns
Concerns about Netflix's future include:
- Declining Engagement: The company is struggling to increase viewing hours, and its original content has not performed well this year.
- Competition: Netflix is losing market share to rivals, particularly YouTube, which has gained significant ground. Nielsen data shows Netflix's U.S. viewing share decreased from 8.8% to 7.8% in the year ending July.
Management's Perspective
Netflix management has challenged the weak engagement narrative, arguing that not all engagement is equal and that they have made strategic choices to focus on specific types of content.