Should You Buy the Dip on Netflix (NFLX) Stock After Earnings Miss?[Stocks](https://moneymorning.com/category/article/stocks/) # Should You Buy the Dip on Netflix (NFLX) Stock After Earnings Miss?  by Omor IE  October 22, 2025  Share it: **Netflix** ( [NFLX](https://moneymorning.com/stocks/nflx)) stock fell by 10% today after the company missed earnings expectations. It reported EPS of $5.87 for Q3 2025 against estimates of $6.94 to $6.97. Revenue met expectations and grew 17% year-over-year. The large earnings miss was due to a Brazilian tax expense not originally included in the company’s forecasts. This tax expense caused earnings to plunge. And while Wall Street would normally ignore one-time expenses, this one came in abruptly and was quite a large sum at $619 million. Per Netflix, “Absent this expense, we would have exceeded our Q3’25 operating margin forecast. We don’t expect this matter to have a material impact on future results.”  ## **Why I’d buy the dip on NFLX stock** Now that the stock has taken a breather, it is a good time to increase your holdings before Netflix picks up speed again. The company has been getting leaner ever since management started cracking down on password sharing, with the recent ad revenue growth making the outlook even better. Analysts see 29.3% EPS growth in 2025 and 25.9% EPS growth in 2026. Sales growth is also expected to be 15.56% in 2025 and 12.9% in 2026. The forward earnings multiple is certainly quite rich at over 48 times, but the margins are growing fast enough to take up a position in the stock.  If Wall Street holds the premium, [NFLX](https://moneymorning.com/stocks/nflx) stock can end up around $1.7k or higher by 2028 if it keeps beating estimates (minus non-recurring items). **Beat the market, without relying on brokers or biased institutions.** Email(Required) Instagram This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. You can unsubscribe at any time and we encourage you to read more about our [Privacy Policy](https://moneymorning.com/privacy/). ## One moment, please: Processing your submission ###### More Trending Stories from Money Morning - [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) - [Is a Buyout the Hope PayPal Investors Have Been Waiting For?](https://moneymorning.com/2026/02/27/is-a-buyout-the-hope-paypal-investors-have-been-waiting-for/) - [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) - [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) - [Anthropic Mauls CrowdStrike Again. Here's Why the Cybersecurity Stock Is a Buy](https://moneymorning.com/2026/02/25/anthropic-mauls-crowdstrike-again-heres-why-the-cybersecurity-stock-is-a-buy/) Share it: ### Popular Articles ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/03/01/why-acm-research-is-a-buy-despite-earnings/) March 1, 2026 ###### [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) February 27, 2026 ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) February 27, 2026 ###### [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) February 27, 2026 Notifications reCAPTCHA Recaptcha requires verification. [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/) protected by **reCAPTCHA** [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/)