Netflix - Watch the tapeNetflix, Inc.BATS:NFLXNoFOMO_I've been on the sidelines sat mostly in cash. I anticipated this drop in the market, I warned you all about oil prices and the euphoria in semis. Now i'm looking to deploy cash, I have turned my attention to core compounding machines that have been forgotten about. Netflix has dropped over 50% from its highs and is now trading around fair value. Does it offer a margin of safety at this level? I calculate the fair value around $66, so I have taken a nibble here but I want to fill my position lower - ideally at $50. A few points to note: - GAAP P/E is around 20.75x. - The mature engine (North America) is reaching its ceiling. YoY growth decelerated from 18% in Q4 2025, to a flat 10% in Q2 2026. There is also growth decay in across other regions. - The $8.99 ad supported tier accounted for over 60% of all Q1 sign ups, their advertising revenue is now at $3 billion for full year 2026. - Slowdown in - Management deployed a record $4.7bn share buyback in Q2 alone. - We appear to be in wave C of the ABC pattern. - We could close the gap down to $50, this would offer a solid 25% MOS. I plan to build this position slowly, getting more aggressive as we close the gap. There's no hurry, I don't fomo into positions. It'll take management time to turn this ship around, I will be around to buy shares from the weak hands as the drop continues. Not financial advice, do what's best for you.