Netflix’s latest quarterly results show impressive growth, despite a rough start to 2026. The streaming service’s revenue rose 17.6% year-over-year, reaching $12.1 billion, with 325 million paid memberships. Profitability is up, with an expanding operating margin and strong cash generation. The advertising business is a key growth driver, with revenue more than doubling in 2025.

Competition poses a threat to Netflix’s bull case, with tech giants and traditional media companies entering the streaming market. Analysts estimate 2026 earnings per share at $3.12, with a fair valuation of about 24 times forward earnings. If competition intensifies, the stock could fall 18-26%, highlighting the importance of sustainable pricing power in a crowded market.

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