Netflix Stock Is Down Nearly 40%. What's Going On?

Netflix's stock has fallen ~38% from its 52-week high, but the underlying business remains healthy with 13% YoY revenue growth, strong profitability, and healthy engagement. The decline reflects a shift in investor expectations—the market is now questioning whether Netflix can sustain high growth at its massive 300+ million subscriber scale. Key factors to watch include maintaining double-digit revenue growth, expanding margins, and successfully monetizing its audience through advertising, which is expected to roughly double to $3 billion in 2026.