$NFLX — AVOID 📊 | 6 MONTHS THESIS

Netflix, Inc. provides entertainment services worldwide. 🎯 FQ2 FY2026 (ends Jun) | reported Jul 16 | Rev $12.6B | Adj EPS $0.80 vs $0.79 🟢 | GAAP op margin 33.4% 💡 Market expected continued quarterly transparency and ~$13.0B Q3 revenue guidance. Instead, Netflix delivered an EPS beat ($0.80 vs $0.79) overshadowed by a revenue miss ($12.56B vs $12.6B consensus), Q3 guidance of $12.86B below Street expectations, and the material reduction of engagement data frequency. 📉 Reward/risk: 3.7:1 🏢 Business Quality: 6/10 📊 Valuation: At $69.03 (post-10:1 split), Netflix trades at approximately 5.6x trailing revenue and roughly 17x annualized Q2 operating income on a market cap of... 🔮 Catalyst: Q3 FY2026 earnings (estimated October 2026) — this is the next verifiable checkpoint. Either stabilization in revenue growth and subscriber metrics, or confirmation of accelerating deterioration. Until then, the transparency overhang suppresses any re-rating potential. 💰 Entry: $62.0, stop $55.0, t

Netflix, Inc. provides entertainment services worldwide.