Shares of Netflix Inc. continue to decline, losing more than 22% over the past three months despite a stronger-than-expected fourth-quarter report. The earnings release failed to reverse investor sentiment, leaving the stock under pressure amid continued market caution.

The main drag on the shares has been concerns over rising expenses. While the company reaffirmed its commitment to long-term margin expansion, it projected faster cost growth in 2026 compared with the previous year, increasing doubts about near-term profitability.

Against this backdrop, Wedbush Securities struck a more optimistic tone, arguing that the market is overstating the risks. Analysts view Netflix’s advertising business as undervalued and expect ad revenue to at least double to around $3 billion in 2026.

Despite the recent decline, most Wall Street analysts continue to see long-term upside in Netflix shares, viewing current levels as attractive for investors focused on future growth.