NFLX's ad business is strong and its adjusted EBITDA margin rose from about 22-23% in 2023 to above 35% in 2026, with 1,000 job cuts helping toward Wall Street's 37-38% end-of-decade goal. Down 33.5% over six months and below its 200-week moving average, NFLX should near $200 within three or four years.

Netflix announced on October 14th, 2026 that it's laying off approximately 6% of its global workforce or nearly a thousand employees. Co-CEO Ted Serendus said last month at the Bloomberg Screen Time Conference that the company was quote not growing as fast as I want.

Our mission is to entertain the world is ambitious and delivering on it requires us to be disciplined about where we prioritize our people and resources.

Netflix co-CEOs Ted Serendus and Greg Peters wrote in an email to employees, "Our business is strong and growing, and we remain on track to deliver our fullear forecast. We continue to invest aggressively in high impact areas to further drive growth and innovation."

Right now, for those of you that follow or maybe own Netflix stock, it's down about 33 and a half% over the last 6 months. might be a good time to nibble or dollar cost average into it further if you're a believer in Netflix stock.

Yeah, I think the call out on Netflix is interesting because, you know, Netflix's underlying business is pretty durable. Um, you their their advertising business has been doing exceptionally well in the last couple of years.

Billions of dollars a year in revenue now that didn't exist as a line item on their income statement just, you know, five or six years ago. But their adjusted Ebida margin has has grown since, you know, 2023 was around 22 23%.

Now it's north of 35% here in 2026. and um is going to grow to Wall Street thinks 37 38% uh by the end of the decade. And I think them shedding these 1,000 employees is going to help them achieve that goal.

And I know we talked about Netflix stock. It's right now it's it's down about to 70ish dollars, but it's one of those things where it's like, yeah, this is a company that's never going away.

Of course, Netflix is going to be here in 5 10 15 years. Of course, people like the content. Netflix does the live stuff. There's, you know, all these things. the the the podcasts are on Netflix now, like Netflix, Netflix, Netflix.

It's one of these things where it's like, you know, it's trading under the 200 week moving average for the first time in in in several years. And so I think Netflix at $70, we're going to zoom out here in probably the next three or four years when it's trading at 200 and be like, "Dang, I wish I bought more Netflix at 70 bucks a share."