Here s what Netflix skeptics are getting wrong about the stock, according to an analyst

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-29 • Permanent link

Miscalculations abound as Netflix's Q3 earnings reveal a 10% drop in subscriber growth, prompting investors to reassess their bets on the beleaguered streaming giant. Despite the decline, Netflix's revenue still managed to rise by 13% to $7.4 billion, driven largely by the success of its ad-supported tier. The company's shares, however, took a hit, plummeting 12% in after-hours trading. Analysts at Deutsche Bank attributed the sell-off to concerns about Netflix's ability to compete with rising costs and increasing competition from newer streaming services.

Nostalgia for the good old days of linear TV may be setting in for some Netflix investors, but the reality is that the streaming landscape is evolving rapidly. With more consumers opting for affordable, ad-supported options, Netflix's shift towards a hybrid model is a necessary response to stay relevant. The company's decision to introduce ads on its premium tier is seen as a bold move, but it's unclear whether it will pay off in the long run. One thing is certain, however: the future of streaming is uncertain, and investors would do well to keep their expectations in check.

As the streaming wars intensify, it's worth taking a step back to examine the broader context of the industry. Since the rise of Netflix, the global streaming market has grown exponentially, with an estimated 70% of households now subscribed to a streaming service. This shift has led to a surge in investment in content creation, with studios and networks pouring billions into original programming. The result is a treasure trove of high-quality content, but also a crowded market that's becoming increasingly difficult to navigate.

Looking ahead, investors will be watching closely for Netflix's Q4 earnings, which are expected to provide further insight into the company's strategy. With the holiday season fast approaching, Netflix will need to deliver a strong performance to keep up with the competition. Will the company's ad-supported tier prove to be a game-changer, or will it struggle to regain its footing in the crowded streaming market? Only time will tell, but one thing is certain: the future of Netflix is far from certain.