Netflix shares have climbed about 25% from their 2026 low, as investors take another look at the streaming company following a sharp selloff and signs emerge that its advertising business and new partnerships could provide additional avenues for growth.
The stock has rebounded from a mid-July low of $65.08 but remains down roughly 34% over the past year and about 36% below its September 2025 record high of $126.71.
The decline has brought Netflix’s valuation back into focus after years in which investors frequently paid a substantial premium for the streaming leader’s growth.
One prominent investor taking advantage of the pullback is Bill Ackman’s Pershing Square Holdings, which disclosed a stake in Netflix during the second quarter.
Ackman said Netflix has “effectively won the streaming wars” and predicted the company could maintain double-digit revenue growth while earnings compound at close to 20% annually, helped by expanding margins and share repurchases.
Netflix is also experimenting with ways to broaden what subscribers can access through its platform. The company partnered with French broadcaster TF1 this year, making TF1 programming available through Netflix in France beginning in June.
The arrangement has fueled speculation that Netflix could eventually become a broader distribution platform for third-party streaming services and television content.
Co-Chief Executive Greg Peters said during Netflix’s second-quarter earnings call that partnerships with other content providers can increase the variety available to subscribers while benefiting the company’s business.
Advertising represents another potential growth engine. Netflix expects its advertising revenue to roughly double this year to about $3 billion as its lower-priced ad-supported tier expands.
The combination of advertising growth, gradual subscription-price increases and continued member additions could help Netflix maintain double-digit revenue growth. The company is also seeking to expand operating margins by keeping growth in content spending below revenue growth.
Wall Street sentiment remains generally favorable despite the stock’s steep decline from its highs. Of 49 analysts covering Netflix, 31 rate the shares a “Strong Buy,” four a “Moderate Buy” and 14 a “Hold,” according to Barchart. The mean analyst price target of $95.48 implies roughly 17% upside from recent levels.
Wolfe Research recently increased its price target to $95 from $84, another sign that analyst sentiment may be stabilizing after a series of downgrades and target reductions earlier this year.
Netflix is meanwhile looking beyond traditional movies and television for future growth. The company continues to invest in video games and live programming, which management sees as a way to increase engagement and attract new subscribers.
The rebound leaves Netflix well below its record high, but investors are increasingly weighing whether the selloff has reset expectations enough for advertising, margin expansion and new distribution strategies to drive the next leg of growth.