Netflix's Forward P/E Drops Below Most Magnificent Seven Stocks

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Summary · why it matters

Netflix's forward price-to-earnings ratio has fallen below that of every Magnificent Seven stock except Meta Platforms, making the streaming giant cheaper than most of its mega-cap peers. The stock hit a 52-week low on June 22, tumbling 22.3% year to date and 45.6% from its high, even as the company guided for full-year 2026 revenue of $50.7 billion to $51.7 billion and an operating margin of 31.5%. Some investors view Netflix's recent acquisition attempts as a red flag for its content pipeline, but the company continues to expand its film, sports, podcast, and gaming offerings while growing its international audience, with U.S. and Canada revenue now accounting for less than 30% of total revenue. Trading at just 20.2 times forward earnings compared to 22.4 for the S&P 500, Netflix is positioned as a high-quality growth stock at a multiyear-low valuation.

Impact on assets 13

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Netflix Inc
NFLX
± MixedCapitalrelevance

Article discusses Netflix's forward P/E dropping below most Magnificent Seven stocks, valuation at multiyear low, but also mentions stock hitting 52-week low and acquisition concerns, creating mixed signals.

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