Is It a Good Time to Invest in Netflix Stock Down 27% from Its Peak?

Netflix, the leading streaming platform for movies and television shows, has been making headlines recently. After a steep sell-off following the announcement of a massive acquisition deal, the stock is down 27% from its peak. However, with strong operating results for the first quarter of 2026, Netflix seems poised for a solid year ahead.

With over 325 million paying subscribers, Netflix is well ahead of its competitors like Disney+ and HBO Max. To stay ahead, Netflix is focusing on creative growth strategies, including live programming. Streaming over 70 live events in the first quarter of 2026 has been a major draw for new users. From the World Baseball Classic in Japan to exclusive streaming of sporting events like MLB games and boxing matches, Netflix is capitalizing on live content to attract more subscribers.

Beyond subscriber growth, live events are also boosting Netflix’s advertising business. The platform’s cheapest subscription tier, which includes ads, saw over 60% of new signups, with over 4,000 advertising clients on board. As Netflix invests more in live events, we can expect this number to grow.

In terms of financial performance, Netflix exceeded expectations in the first quarter of 2026. With record revenue of $12.25 billion and earnings per share of $1.23, the company outperformed management’s forecasts. With a full-year revenue forecast of $50.7 billion to $51.7 billion, including an expected $3 billion from advertising sales, Netflix is showing positive momentum, especially considering its relatively recent entry into the advertising business.

Looking ahead, Netflix’s stock appears attractive on a forward basis. With a price-to-earnings ratio of 31.3 based on trailing-12-month earnings, Netflix is trading in line with the Nasdaq-100 technology index. Despite recent fluctuations, Netflix’s strong subscriber growth and foray into live events and advertising suggest a promising future for the streaming giant.