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Barchart
Mark R. Hake, CFA

Netflix Has Lower FCF Guidance, Pushing Its Valuation Lower, But Is NFLX Too Cheap?

Netflix, Inc. (NFLX) generated strong free cash flow (FCF) in Q3 in its Oct. 20 earnings release. However, it guided to lower 2026 FCF, reducing it to $12 billion from $12.5 billion. Despite this, Q3 FCF margin stayed high at 22.9%, and revenue is forecast to rise next year.

Nevertheless, analysts lowered their price targets, and NFLX dropped. Is it too cheap?

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