Netflix Stock Is on Track for Its Worst Year Since 2022. Is It Finally a Buy?

Netflix stock has declined 27% in 2026, approaching its worst year since 2022, despite strong business fundamentals. The company reported Q3 revenue growth of 12% to $12.9 billion and operating income up 37%, with an operating margin of 34.6%. However, revenue growth is decelerating and the company cut its 2026 ad revenue guidance from $3 billion to $2.7 billion. At a P/E ratio of 17-18, Netflix trades in line with the S&P 500 despite double-digit revenue growth and a 35% operating margin, making it worth considering for long-term investors willing to build positions gradually.