Is Netflix Stock a Buy in 2026?

With shares up by only 3.7% over the last 12 months, Netflix (NASDAQ: NFLX) stock has deeply underperformed the tech-heavy Nasdaq Composite, which has risen by almost 18% over that time frame.

This disparity is probably because the streaming giant is less exposed to the generative artificial intelligence (AI) megatrend, which has boosted the growth and valuations of other big tech companies. Investors are also nervous about its plan to acquire Warner Bros. Discovery, which (if the deal gets to the finish line) could weaken its balance sheet. Let's explore what 2026 might have in store.

Video streaming may look like old news in big tech, but Netflix's third-quarter results show there is plenty of room for further expansion. Revenue jumped 17% year over year to $11.5 billion, driven by strength in core markets like the U.S. and U.K. The company has seen massive success this year with original programming and sports events such as the Canelo Álvarez vs. Terence Crawford boxing match, which was the most-viewed men's championship fight of the century (with 41 million viewers). The platform followed that up with the Jake Paul vs. Anthony Joshua fight, which drew 33 million views.

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Source Fool.com