Netflix Stock Is the Cheapest It Has Been in 3 Years Following Its 41% Plunge -- But Is It a Buy?

2026-02-25 06:14:00 ET

Netflix (NASDAQ: NFLX) operates the world's largest streaming platform for movies and television shows. The company ended 2025 with a record number of subscribers, a record amount of revenue, and record earnings, yet its stock has plummeted by 41% from its all-time high from last June.

Netflix is in a fierce bidding war to acquire Warner Bros. Discovery (NASDAQ: WBD) . The deal would add an entire slate of high-quality content to the Netflix platform, but it could come at a hefty cost of $82.7 billion (or more), and it's already facing intense scrutiny from regulators. Investors don't like uncertainty, which might explain why many of them are waiting on the sidelines for now.

Netflix stock is currently the cheapest it has been in three years, and it's even trading at a discount to the Nasdaq-100 technology index. If we zoom out, the stock is still sitting on a whopping 73,400% gain since its initial public offering (IPO) in 2002. Since its business continues to fire on all cylinders, the recent dip might be a small bump in the road ahead of further gains in the future. Investors rarely get the chance to buy this stock at such a steep discount, so is it time to make a move?

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