Netflix Has Fallen More Than 40% 7 Times in Its History. Here's What Happened Next Each Time.

Netflix stock has experienced seven major 40%+ declines since its 2002 IPO, each followed by significant recoveries averaging 248% gains over the subsequent year. Currently trading 40% below its June 2025 peak, the stock appears undervalued at a forward P/E of 25.8. However, intensifying competition from platforms like YouTube and Instagram, combined with slowing growth prospects, presents a different challenge than past downturns.