Netflix’s Underperforming Stock Needs a New Story. It Can’t Be AI.

Netflix stock has underperformed sharply in 2026, falling for eight straight sessions and remaining down 13% year to date, about 40% below its June 2025 all-time high. The article argues the company needs a new growth narrative after the password-sharing crackdown and ad-supported tier already fueled a major rebound from 2022 through 2025. While Netflix continues to benefit from rising subscribers, ad revenue growth, and AI-driven improvements to recommendations and targeted advertising, the piece says AI is unlikely to be a market-changing catalyst on its own. The author remains constructive on the stock because of revenue growth, margin expansion, and upside to analyst targets, but concludes investors may be demanding a fresher story than incremental AI adoption.