Netflix (NASDAQ: NFLX) stock hit a new 52-week low on Oct. 27, 2026, down 33% year to date. That’s a steep fall for a leading entertainment brand that still grows revenue by double digits.
Still, a stock trading at a discount to the market while growing revenue by double digits is worth a closer look. Here’s why Netflix is in a better competitive position than the stock’s performance suggests, and why the sell-off could set up a double over the next five years.
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Slowing U.S. growth explains the sell-off
Revenue growth has slowed for three straight quarters, from 18% in the fourth quarter of 2025 to 12% in Q3 2026. The laggard is the U.S. market. During the third-quarter earnings call, Co-CEO Greg Peters said, “We know that we can do better, and that better is our upside.”
Peters said management is focused on improving its U.S. content slate, which is expected to deliver better results. The streaming market is competitive, with YouTube continuing to dominate viewing time, according to Nielsen. Netflix is behind YouTube in the No. 2 spot, but that also means it’s ahead of dozens of other streaming services, including Walt Disney, Roku, and Amazon Prime.
Netflix subscribers are staying, and every region is growing
Every region grew revenue by double digits year over year last quarter: 11% in the U.S. and Canada; 11% in Europe, the Middle East, and Africa; 17% in Latin America; and 12% in Asia-Pacific. In India, a strong slate of local hits lifted viewing hours 24% year over year.
Importantly, slowing U.S. growth doesn’t mean subscribers are canceling. Peters said, “Q3 churn, both globally and in the United States, improved year on year,” meaning fewer members canceled. And this is following recent price increases, including in the U.S. When people keep paying more without leaving, the service is delivering value.
Netflix continues to grow and earn a healthy margin on revenue. It reported nearly $16 billion in trailing-12-month operating income on $50 billion of revenue, providing ample resources to fund a growing content budget and win more viewing time in the U.S. market.
Enough earnings growth to double the stock
Management reiterated its long-term financial goals to sustain double-digit revenue growth, increase profit margins, and grow free cash flow. If it delivers, earnings should grow faster than revenue, setting up a rebound in the stock.
