Is Netflix (NFLX) Stock a Buy?
2026-10-04 19:05
•Selena Maranjian •The Motley Fool
•• ••••••• Axe Cap view
Netflix: Solid History, Slowing Future
Netflix’s streak of outsized growth is waning, making the stock less attractive amid streaming competition and slowing revenue.
Netflix built an impressive track record, turning modest investments into hefty gains over 15 years. But the easy growth phase is behind it. Revenue jumped just 13% year-on-year in Q2, a clear sign the streaming market is maturing and saturated. Amazon Prime, Apple TV, and YouTube all eat into Netflix’s share, and content costs keep rising. The stock’s valuation looks fair—trading near 18 times earnings versus a 5-year average of 30—but that’s because investors expect slower growth ahead. For South African investors, there isn’t a direct JSE equivalent to Netflix, so currency strength matters. A weakening rand (USD/ZAR rising) could lift imported tech costs but also make local stocks with global exposure like Naspers and Prosus relatively more attractive. The risk: Netflix surprises with new content hits or global subscription growth. It’s worth a small, cautious hold rather than a rush to buy. this is just our opinion and not financial advice
Avoid loading up on Netflix now. Consider a small exposure if you’re confident in a long game, but focus more on JSE counters like Naspers and Prosus, which offer indirect streaming exposure with local currency support.
- NFLX
- USD/ZAR
- Naspers
- Prosus
- Stronger than expected Netflix subscriber growth
- Rand strengthening sharply, hurting global exposure plays
6/10
Netflix has been an exceptional long-term performer, turning $1,000 into $43,000 over 15 years. However, the company's growth is slowing with Q2 revenue up only 13.4% year-over-year. While valuation metrics appear reasonable compared to historical averages, the mature streaming market with intense competition from Amazon Prime Video, Apple TV, and YouTube makes Netflix not particularly compelling at current levels. The author suggests buying a little could work long-term, but better opportunities exist elsewhere.
Our take is based on reporting first published by The Motley Fool.