Netflix: Down Nearly 50% Over the Past Year, Is the Stock a Buy on This Latest Dip? Here's the Real Issue Behind the Stock's Decline.
Netflix shares sank yet again after it reported its second-quarter results.
Overview
Netflix (NASDAQ: NFLX) shares have been in a slump, and things only got worse after the video streaming company reported its second-quarter results after the closing bell Thursday. After the stock's 7.3% slide on Friday, the stock is down more than 26% thus far in 2026, and its shares have been nearly cut in half over the past year.
While some investors might be tempted to buy the dip, I wouldn't rush in yet.
Details
Netflix's biggest issue in my view is that the company is starting to look more and more like the cable networks it helped disrupt with its streaming service. Its growth now appears to be driven more by price increases than subscriber growth, and the company hasn't been helping its case by continuing to publicly report on fewer metrics to give investors insight into its business.
Source
Originally published at www.fool.com.