Netflix: Is It Time to Buy the Stock Again?Netflix, Inc.BATS:NFLXSwissquoteNetflix shares have corrected by more than 50% since reaching their all-time high in June 2025. Since the end of last July, the stock has been attempting to stabilize after rebounding from its 200-week moving average. Can we conclude that a major bottom is currently being formed? To answer this question, I turned to both technical analysis and fundamental analysis, focusing in particular on Netflix's current stock market valuation. The analysis is based on two key elements: •Long-term technical signals provided by the monthly and weekly charts. •Netflix's valuation based on its Forward Price-to-Earnings ratio (Forward P/E). From a technical perspective, the stock has found support around $70, corresponding to the previous all-time high reached in November 2021. The share price has retraced nearly 61.8% of the entire previous bull market, while the 200-week moving average is currently acting as support. Holding support is encouraging, but breaking resistance is even more important. To confirm the formation of a major long-term bottom, the stock would need to break above the weekly Ichimoku Kumo (cloud). From a valuation standpoint, has Netflix returned to an attractive level? The answer is becoming increasingly positive. Netflix's Forward Price-to-Earnings ratio (Forward P/E) has now fallen below 20, a level that contrasts sharply with the very high valuation multiples investors had become accustomed to over recent years. This normalization of valuation is primarily the result of the sharp decline in the share price, while earnings expectations have remained relatively resilient. The table below ranks the companies within the US Communication Services sector according to their Forward P/E. Following a correction of more than 50% from its all-time high, Netflix once again appears attractively valued. When Netflix is compared with the other major Communication Services companies within the S&P 500, the conclusion becomes particularly interesting. With a Forward P/E of approximately 19.9, Netflix now ranks only ninth among the highest-valued companies in the sector. Companies such as Live Nation, Trade Desk, TKO Group, EchoStar, and Take-Two Interactive currently trade at significantly higher valuation multiples. Even Alphabet is now valued at a comparable multiple. In other words, Netflix is no longer the "expensive growth stock" it was for several years. The market now requires a much more reasonable valuation premium, even though the company continues to benefit from a dominant position in the streaming industry, steady growth in advertising revenues, and exceptionally strong free cash flow generation. This obviously does not mean that the stock cannot continue to decline if the overall market environment deteriorates or if upcoming earnings disappoint investors. However, the combination of a major long-term technical support level and a much more attractive valuation creates a significantly more favorable environment for long-term investors. The chart below displays the weekly Japanese candlesticks of Netflix stock, which has declined by more than 50% from its all-time high. Also note that the P/E ratio has returned to a historically low valuation zone. DISCLAIMER: This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. The presented idea (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. This material is intended to highlight market action and does not constitute investment, legal or tax advice. 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