Are Investors Too Worried About Netflix’s (NFLX) Growth?

Netflix, Inc. (NASDAQ:NFLX) has spent much of 2026 under pressure as investors are beginning to wonder whether the company's growth will slow. The stock has fallen 21.18% this year, with concerns ranging from weaker engagement to intensifying competition from YouTube and other entertainment platforms. Yet the underlying business is still growing. Netflix generated $12.56 billion in revenue in the second quarter, increasing 13.35% from the same quarter last year. Management expects full-year revenue growth of 13%-14%. Wall Street expects revenue to increase at a similar pace over the next couple of years. At about 18.69x forward earnings, the stock also trades at a valuation that is considerably less demanding than its historical average.