Netflix is a top 5% Quality Compounder in the world. And the stock is down 40%. Why?

Users and engagement are softening. Sensor Tower: MAUs -3% year over year (both US and global). Time spent -8% in the US and -7% globally.

Netflix is losing attention to YouTube. Its share of total streaming time spent fell from 50% to 48% in one quarter. Per Nielsen, it gave back roughly half of its full-year viewership share gains to YouTube in 2026 alone.

The core investor debate right now is competition and engagement. Revenue growth still looks great, but it's increasingly carried by advertising and price hikes rather than new subscribers. And the market no longer looks willing to value an asset like this at 40x earnings the way it did last year. $NFLX