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Netflix trades at 18.9x forward earnings as ad growth and buybacks support case

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2026-07-27 17:33:50
According to CNBC, Netflix shares are trading at 18.9 times forward earnings, down near the streaming company's 2022 bear-market trough of less than 15 times, as the business has become cheaper while fundamentals have improved. The article said Netflix's ad business is expected to generate about $3 billion this year and could reach $10 billion by 2030, while management is buying back stock instead of pursuing larger legacy media deals. It also said Netflix has about 325 million paying members and that generative AI could lower production, dubbing and localization costs.
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