Netflix shares have lost 42% in a year. Here's why I'm not selling a single share.
Netflix shares have lost 42% in a year.
Here's why I'm not selling a single share.
Netflix (NFLX -0.21%) isn't just another stock to me. This one is special, and I still think it's a great buy in 2026.
It was one of the first stocks I ever bought, and the first business model I really understood. This was way back when the red mailers were disrupting Blockbuster's time-honored video rentals. In the summer of 2006, I spent weeks researching the home video industry, interviewing video store owners, and checking the film collections in every outlet I could find. Download services like Vongo and Movielink were promising, and so was the cable TV industry's video-on-demand option -- but those services never got the Hollywood support and huge catalogs they needed.
Netflix stood apart with the largest movie catalog, the most convenient delivery service (if you didn't mind waiting for the mail), and unstoppable innovation. The company had "Net" in its name long before most home internet connections were fast enough to stream digital movies. Late fees? Nope, you must be thinking of Blockbuster and Movie Gallery.
Owning Netflix used to feel naughty
Netflix's stock usually looked expensive, and traditionalists often argued that Netflix's newfangled ideas couldn't compete with decades-old studio traditions. Furthermore, earnings and free cash flows were typically negative in those days. It almost felt naughty to believe in Netflix and own the stock.
That didn't stop me from buying Netflix early and doubling down when the stock looked extra cheap. The shares I bought in October 2011, amid the Qwikster-related price drop, have gained 5,800% as of Oct. 13, 2026. The largest holding in my personal portfolio is -- you guessed it -- Netflix, even after my Micron shares soared 7,300% in a 15-year holding period.
Netflix stock is on sale again
That's all in the past, of course. You are more interested in why I still think Netflix is a good buy today. Fair enough.
Averytin News Financial update.