Since reaching all-time highs last summer, Netflix shares have declined by roughly 30%, wiping out all of the stock’s gains for 2025. The sustained downtrend reflects investor concerns over slowing subscriber growth in key markets, heightened competition from rival streaming services and uncertainty around the company’s ability to monetize its massive user base effectively.

HSBC analyst Mohammed Khallouf rates Netflix as a buy, arguing that fears of a large-scale Warner Bros. Discovery takeover are overblown and have unfairly pressured the stock. Khallouf highlights Netflix’s dominant market share, diversified content library and flexible balance sheet—Netflix ended 2025 with over $7 billion in net cash—as factors that make an acquisition unlikely and the current pullback a buying opportunity.

Netflix continues to serve more than 300 million subscribers across 190 countries and has delivered sequential revenue growth for five quarters straight. In Q3 2025, revenue reached $11.51 billion, up 17.2% year-over-year, following $11.08 billion in Q2 2025 and $10.54 billion in Q1 2025. Earnings per share have also remained healthy, with Netflix reporting $5.87 in Q3 2025, compared with $7.19 in Q2 2025 and $6.61 in Q1 2025.

To boost monetization, Netflix launched its in-house adtech platform, Netflix Ads Suite, and plans to more than double advertising revenue in 2025. The company has introduced a lower-priced, ad-supported subscription tier, cracked down on password sharing and added live sports rights in select markets. Management projects that advertising could contribute up to 15% of total revenue by the end of next year, helping to offset slower subscription growth in mature regions.