As we head into the final few sessions of 2025, Netflix Inc. (NASDAQ: NFLX) is on track to finish Q4 as one of the market’s clear laggards. Shares of the streaming giant fell roughly 20% over the period, sharply underperforming the S&P 500, which logged a gain of more than 3%. In the broader context, Netflix is trading back near where it stood this time last year, having lost more than 30% since its all-time high in July.
Overall, the sell-off reflects a broad loss of confidence. Investors have questioned whether Netflix can maintain its historical growth rates, grown uneasy about its proposed acquisition of Warner Bros. Discovery, and have remained unsettled by October’s dodgy earnings report. However, there are several reasons to think the worst-case scenario is now priced in, and the stock’s risk/reward profile is skewing north. Let’s take a look at why Netflix could be a sneaky comeback contender for Q1.
