Netflix Q1 Preview: The Generational Buying Opportunity Is Here

Amrita RoyInvesting GroupFollow5ShareSavePlay(11min)CommentsSummaryI am reiterating my “buy” rating on Netflix with an $172 per share price target, offering 81% upside from current levels.NFLX's FY26 outlook includes 12-14% revenue growth, ad revenue doubling to $3B, and operating margin rising to 31.5%.Key catalysts are Q1 beats on revenue/EPS, progress toward ad revenue targets, and minimal churn from recent price hikes, along with management raising forward guidance.The risk-reward is attractive as NFLX trades at 21x FY28 EPS, 18% below its 5-year average PE, with high-teens to low-twenties EPS growth projected over the next three years.Looking for a portfolio of ideas like this one? Members of The REIT Forum get exclusive access to our subscriber-only portfolios. Learn More » Wachiwit/iStock Editorial via Getty Images Introduction & Investment Thesis Netflix (NASDAQ:NFLX) stock may be down close to 30% from its all-time highs. But the stock is up 1.9% YTD in 2026, outperforming the S&P 500, which is down close to 4% for the year. This is the case, as Netflix stockThis article was written byAmrita Roy6.01K FollowersFollowAmrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund's objective is to invest capital in sustainable, growth-driven companies that maximize shareholder equity by meeting their growth-oriented goals. In addition, she also started her own award-winning newsletter, The Pragmatic Optimist which focuses on portfolio strategy, valuation, and macroeconomics in concert with her husband Uttam Dey who is also a contributor on Seeking Alpha. Prior to cofounding her fund, Amrita worked for 5 years in high-growth supply-chain start-ups in downtown San Francisco, where she led strategy. During her time in the Bay Area, she also worked with venture capital firms and start-ups, where her efforts led her to grow the user acquisition business. During this time, she was introduced to investment portfolios and was able to maximize returns for clients during the pandemic. The cornerstone of Amritas work rests on democratizing financial literacy for everyone and breaking down financial jargon and complex macroeconomic concepts into formats that are easily digestible but more empowering than the typical investment thesis. Her newsletter has been featured as the Top Newsletter in Finance on popular newsletter platforms and she aims to bring her ideas to Seeking Alpha as well.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NFLX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.