๐ฌ THE STREAMING KING IS ON SALES ๐ฟ๐
I just added 5 positions of Netflix (NFLX) to my long-term portfolio at $89.31.
โThis is a textbook "overreaction" play. The market is pricing in merger uncertainty, but they are ignoring the massive cash-flow engine that remains intact. In my opinion, entering position sub-$90 entry is a absolute gem. ๐๐
โ๐ The Setup: Post-Split Value & Technical Support
โIf you're looking at the price and thinking "wasn't this $1,000?", remember: Netflix executed a 10-for-1 stock split back in November 2025. We are now buying at levels that represent a major technical reset.
โMulti-Year Support Zone: $89.31 is a critical level. We are currently retesting the $85โ$90 support range, which has acted as a launchpad for every major rally in 2025.
โOversold RSI: The stock has tumbled nearly 30% from its mid-2025 highs due to the WBD acquisition drama. The Daily RSI is screaming Oversold (<30), signaling that the selling pressure is exhausted. ๐โ
โP/E Normalization: Trading at a forward P/E of ~28x, Netflix is the cheapest it has been relative to its growth profile in years. For the dominant leader in streaming, this is a "buy the fear" moment.
โ๐ The Catalyst: The "Everything Store" of Entertainment
โNetflix in 2026 is no longer just a streaming app; it's a global media hegemon with three massive growth pillars:
โThe Ad-Tier Explosion: Ad revenue is projected to double in 2026. Netflix has successfully transitioned from a pure subscription model to a high-margin advertising powerhouse. ๐๐ฐ
โGenerative AI Localization: They are using AI-driven "automated dubbing" to make local content (like Squid Game) global instantly. This "Global Content Arbitrage" keeps production costs low while maintaining massive scale.
โLive Sports & Gaming: With the expansion into live events and interactive gaming, Netflix is capturing more "screen time" than any other platform. They aren't just competing with Disney; they're competing with TikTok and YouTube.
โ๐ก Final Verdict
โThe WBD merger fears are a distraction. Even with the debt load, Netflix's ability to generate $8B+ in annual Free Cash Flow makes it a defensive fortress with offensive growth.
Comments