Summary

• With more than a quarter of Netflix, Inc.'s valuation erased since its April peak, the recent selloff has de-risked slowdown, AI disruption, competition and M&A concerns, including the latest Lionsgate overhang.
• Accelerating ad monetization, recent pricing actions, and increasing live content anchored in the expanded NFL partnership supports renewed ARM- and subscription-driven upside to Netflix's growth profile.
• Management's margin outlook also points to sustained earnings expansion and FCF accretion through the second half.
• Taken together, NFLX stock is increasingly shaping a 2023-style V-shape inflection, with the recent selloff creating a compelling recovery set-up as ad monetization, ARM expansion and FCF accretion accelerates.

Netflix, Inc. (NFLX) has emerged as one of the biggest underperformers against its broader tech peers this year, with the stock having declined close to 27% from its mid-April peak. The downside pressure underscores a persistent

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NFLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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