1 Reason Why Netflix Stock Looks Oversold

2026 has been a rough year for Netflix (NASDAQ:NFLX). The streaming stock is down 31% year-to-date, including a 6% slide following its earnings report on Tuesday.

Netflix's sell-off isn't a mystery. The company has struggled with viewer engagement, as viewing hours were up just 2% through the first half of the year, and it has lost viewing share to its rivals, including YouTube, the market leader. According to data from Nielsen, Netflix's viewer share fell from 8.8% to 7.8% in the year ending July.

However, while Netflix's growth is slowing, it's delivering solid results. Revenue rose 11.8% to $12.9 billion in the third quarter, and earnings per share improved from $0.59 to $0.87, though that was partly due to lower content spending because of timing.

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