Should You Buy the Netflix Dip?

By Catie Hogan – Apr 19, 2026 at 12:15PM ESTKey PointsAfter a strong earnings report, Netflix's share price dropped 10% on news of tepid forward guidance.Netflix's first-quarter revenue grew 16% year over year.Netflix (NFLX 9.71%) delivered a strong first quarter, but the market was not happy about it. There seemed to be a disconnect between the numbers the streaming service presented and how investors ultimately feel about the forward guidance. ExpandNASDAQ: NFLXNetflixToday's Change(-9.71%) $-10.47Current Price$97.32Key Data PointsMarket Cap$411BDay's Range$95.10 - $98.7352wk Range$75.01 - $134.12Volume5MAvg Vol50MGross Margin49.44% This led to the stock price plunging 10% on Friday, April 17. Long-term investors should see this sudden dip as a solid entry point into a company that's steadily expanding globally, rather than a warning sign of future weakness. Investors who were upset with the lukewarm forward outlook are missing a bigger point. Netflix has a massive opportunity outside of the United States. The streamer has penetrated less than 45% of the total addressable market, leaving plenty of eyeballs to capture through subscriptions. Image source: Getty Images. Netflix's fundamentals are fully intact, and the Q1 2026 results are overwhelmingly positive. First-quarter revenue grew 16% year over year, and operating income was up 18%. Both of these results were slightly ahead of the company's guidance. Netflix also saw a massive jump in free cash flow following the termination of the Warner Bros. Discovery deal, as Netflix was owed $2.8 billion if the deal didn't finalize successfully. Netflix's stock has been relatively flat over the past 12 months. The company still trades at a slight premium with a forward P/E ratio of 34 and a PEG ratio of 2.25. Overall, Netflix is really well positioned to continue its organic growth worldwide. Read NextApr 19, 2026 •By Neil PatelMeet the Monster Stock That Continues to Crush the MarketApr 19, 2026 •By John BallardBuy These 3 Growth Stocks Now, Ignore the Noise, and Thank Yourself LaterApr 17, 2026 •By Josh Kohn-LindquistStock Market Today, April 17: Netflix Drops As Reed Hastings Departs From Board and Company Offers Soft GuidanceApr 17, 2026 •By Howard SmithNetflix Stock Tanked Today.

Should You Buy the Dip?Apr 17, 2026 •By Anders BylundWhy Netflix Stock Fell 11.8% Friday MorningApr 17, 2026 •By The Motley Fool TeamStock Market Today (LIVE): Is Netflix (-10% Today) Finally Cheap?; Stocks Buoyed by Open StraitAbout the AuthorCatie is a contributing Motley Fool stock market analyst covering technology, consumer goods, transportation, industrials, materials, and energy. She's the founder of the family finances newsletter, Cents of Humor. Catie was formerly the Head of Advice & Coaching at Parthean and an advisor at Element Financial Group. She's the writer and a producer of the hit off-Broadway show, Vape!

The Grease Parody. Catie has a degree in journalism from Emerson College.TMFCatieHoganStocks MentionedNetflixNASDAQ: NFLX$97.31(-9.72%)-$10.48*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.