Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAlex SiroisMon, June 15, 2026 at 6:49 PM GMT+2 4 min readQuick ReadNetflix fell 13% year-to-date while the Nasdaq gained 17%, a gap the author sees as a rare buying opportunity in a cash-generating monopoly.NFLX's ad-supported tier captured over 60% of Q1 sign-ups, with ad revenue targeting $3 billion in 2026, double the prior year.Analysts hold 37 buy ratings and zero sells on Netflix, with a mean target of $115 and $6.8 billion in active share buybacks remaining.Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Netflix didn't make the cut. Grab the names FREE today.I keep buying Netflix (NASDAQ:NFLX) every time the market hands me a worse price for the same business, and the market has been generous lately. The stock closed at $81.27 on June 11, down 13.32% year to date while the Nasdaq 100 ETF is up 16.74% over the same window. That gap is the whole reason I am writing this. Wall Street is drifting away from a digital monopoly that prints cash, and I am using the drift to load up.24/7 Wall StWhat Keeps Pulling Me BackThe simple version: Netflix sells a habit to over 325 million paid subscribers and has finally turned that habit into an advertising business. Co-CEOs Ted Sarandos and Greg Peters are running a company where the ad-supported tier was over 60% of all Q1 sign-ups in ad markets and the advertiser count grew 70% year-over-year to over 4,000 clients. Ad revenue is guided to roughly $3 billion in 2026, double the prior year. That is a second engine bolted onto an already profitable streamer.The Data That Closes the ArgumentFirst, the cash. Q1 2026 free cash flow hit $5.09 billion, up 91.44% year-over-year, and management raised full-year FCF guidance to about $12.5 billion. Operating margin is guided to 31.5%, up from 29.5% in 2025. Cash on the balance sheet sits at $12.26 billion, debt-to-equity is 0.54, and interest coverage runs 17.16x. This is an investment-grade money machine.Second, the moat. Netflix penetration is still less than 45% of total addressable broadband households globally, and growth is showing up everywhere: Q1 revenue rose 14% in North America, 17% in EMEA, 19% in Latin America, and 20% in Asia Pacific. The content engine is producing the kind of cultural events that make churn unthinkable: KPop Demon Hunters drew 325 million views, Wednesday Season 2 pulled 114 million, and the World Baseball Classic delivered the largest sign-up day ever in Japan.Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Netflix didn't make the cut. Grab the names FREE today.Third, the valuation reset. Trailing P/E sits at 26 with a forward P/E of 25. Return on equity is 48.5%. Netflix repurchased 13.5 million shares for $1.3 billion in Q1 with $6.8 billion left on the authorization. Buybacks at a year-low price are exactly what a long-term owner wants.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info