Netflix - More Than Just Streaming

Intro

Every time you open Netflix...

AI recommends what you should watch next.

Advertisements become more personalised.

Millions of viewers tune in to live events.

Here's the question many investors overlook:

Is Netflix still just a streaming company?

This week, Netflix reported another strong quarter, with revenue rising to US$12.56 billion and continued growth in its advertising business. Yet the stock fell after management's outlook fell short of Wall Street's high expectations.

It's a reminder that markets don't simply reward good companies - they reward companies that exceed expectations.

Today, Netflix is far more than a streaming platform. It generates recurring revenue from subscriptions, advertising, live events, gaming, and one of the world's largest libraries of original content. Artificial intelligence also helps personalise recommendations, improve viewer engagement, and increase the value of its advertising platform.

Fundamentals

On the monthly chart, Netflix remains in a strong long-term uptrend despite the pullback that began in July 2025. After reaching a new high of 134, the stock has pulled back as investors took profits and became more cautious about future growth expectations. This type of pullback is a normal part of long-term uptrends, and the broader bullish outlook remains intact as long as price continues holding above the Ichimoku Cloud and key long-term support levels. Rather than chasing the stock, patient investors may prefer waiting for pullbacks towards technical support to improve their risk-to-reward profile.

Technical

Buy Limit Ideas

• $62 (High Fill Probability)

• $42 (Moderate Fill Probability)

• $16.5 (Low Fill Probability)

Profit Taking Ideas

• $89 (High Fill Probability)

• $107 (Moderate Fill Probability)

• $134 (Low Fill Probability)

Risk Level: Medium

Netflix continues to face intense competition from other streaming platforms while investing heavily in original content and live programming. The advertising business is growing rapidly but remains relatively new, and high investor expectations can create short-term volatility even after solid earnings results.

Netflix has evolved beyond a streaming company into a global entertainment platform powered by subscriptions, advertising, AI and original content. This week's earnings highlight an important investing lesson: a strong business doesn't always lead to a rising share price if expectations are even higher. For Triple Compounding™ investors, Netflix offers exposure to the long-term growth of digital entertainment, while reminding us that successful investing is about looking beyond the headlines and focusing on the bigger picture.

Triple Compounding™ Principle: Money grows faster when decisions are boring and repeatable.