Netflix's Problem Isn't Profits. It's Viewing Time.

Netflix shares have fallen 54% from highs despite strong revenue growth and record profit margins. The core issue is stagnating viewing hours, particularly in the U.S., where Netflix's market share has plateaued while YouTube gains ground. To address this, Netflix is diversifying into sports, live events, and podcasts while competing with YouTube, Instagram, and TikTok for user attention. The analyst believes Netflix stock is undervalued at a P/E of 18 if management can execute its turnaround strategy.