Netflix shares have retreated to sub-$100 levels in early 2026, prompting renewed investor interest. With a current price near $98.40 and resilient global subscriber retention, the stock may represent a compelling entry point for long-term holders.
- NFLX trading at $98.40 as of January 13, 2026, below $100 psychological threshold
- Q4 2025 global paid subscriber growth: +4.3 million, exceeding expectations
- Operating cash flow: $2.1 billion, up 14% YoY
- Content spend-to-revenue ratio improved to 58% in Q4 2025
- International revenue now 64% of total revenue
- Price-to-earnings ratio of 21.5x, below five-year average of 27.3x
Netflix Inc. (NFLX) has dipped below the psychological $100 threshold for the first time since late 2023, trading at $98.40 as of January 13, 2026. This decline follows a 12% correction from its 2025 peak, driven by heightened competition in streaming and cautious guidance on user growth in key international markets. Despite these headwinds, Netflix reported stable core metrics, with global paid subscribers increasing by 4.3 million in Q4 2025—surpassing analyst expectations of 3.8 million. The company's strategic pivot toward cost optimization and content efficiency has begun to show results. Operating cash flow reached $2.1 billion in the quarter, up 14% year-over-year, while the content spend-to-revenue ratio improved to 58%, down from 62% in Q4 2024. These improvements coincide with a 32% reduction in licensing costs for non-original programming, a move designed to align spending with subscriber growth rates. Market analysts are divided, but several institutional firms now view the sub-$100 range as a strategic accumulation zone. The stock’s price-to-earnings ratio of 21.5x for FY2026 is below its five-year average of 27.3x, suggesting potential undervaluation given its stable cash flow and diversified content library. Additionally, Netflix’s international revenue now constitutes 64% of total revenue, up from 58% in 2023, highlighting ongoing geographic diversification. Investors, especially those focused on communication services and streaming technology, are closely monitoring the company’s next earnings report, scheduled for February 14, 2026. Market reaction will likely hinge on guidance for 2026 subscriber targets and international penetration, particularly in India and Southeast Asia.