Netflix (NASDAQ:NFLX) stock hasn’t been doing this badly since 2022, when tech stocks crashed, and it lost more than half its value. Thus far in 2026, it’s down around 17%. It’s not a disastrous performance, but clearly, investors aren’t as excited about the business as they have been in the past.
Many investors worry about what lies ahead for the business with Reed Hastings stepping away from the company and Netflix’s name popping up in rumors related to possible acquisitions. The business has grown exceptionally well organically, and an acquisition could muddy its future and impact margins.
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However, other investors may see an opportunity to snatch a top growth stock at a much more modest valuation right now. Is Netflix a good buy right now, and is it likely headed back toward $100, or is a pullback to $60 more likely? Let’s take a look.
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Is Netflix’s stock really cheap?
Netflix’s stock has been falling this year, but back in 2022, when things really went off the rails, it fell below $20. Entering trading this week, its value is well above that, at nearly $80.
A good way to gauge its value, however, is by tying the numbers back to earnings. On a price-to-earnings (P/E) basis, the stock trades at around 25 times its profits, slightly above the S&P 500 average of roughly 24.
Here’s how it compares against its historical P/E multiple over the past five years.
NFLX PE Ratio data by YCharts
In the past, investors have been willing to pay a far higher premium for Netflix than they have of late. But if investors are concerned about slowing growth ahead and a potential acquisition weighing on its margins, that could explain some of the hesitation to pay a high multiple for the stock right now.
Why I think Netflix is most likely headed for $60
Netflix has a great business, but unfortunately, I think market headwinds, including a possible rate increase this year, may impact its share price in the near term. Its growth hasn’t been particularly strong of late, and barring a drastic improvement in the near future, I expect that will give investors more of a reason to remain bearish on the stock.
The good news, however, is that if the streaming stock falls to $60 or lower, it could be a terrific value buy. Netflix has done an excellent job of growing its business and producing its own content, which is why I’m confident that even if the stock continues to struggle, it’ll bounce back. Buying the stock at a sharply reduced price could be a great opportunity for investors in the long run.
