What changed
$NFLX — BUY 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $12.2B | EPS $1.23 vs $1.25 🔴 | Margin 32.3%
💡 Consensus expects decelerating streaming growth and margin pressure from competition, reinforced by the EPS miss. In reality, Q1 operating income beat expectations, margins expanded 60bps, and revenue guide implies 16-18% full-year growth — indicating the miss was from non‑operational factors (tax/termination fee).
📉 Reward/risk: 2.24:1
🏢 Business Quality: 9/10 - Category leader in global streaming with unmatched scale, pricing power, and a long runway for subscriber and ARPU growth; consistent margin expansion and strong FCF generation.
📊 Valuation: fair - On a normalized basis (ex‑$2.8B termination fee), P/E ~34x 2026E, EV/Forward Revenue 6.6x, EV/Operating Income 22.7x, FCF yield ~4.1%.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/NFLX0612