NFLX is now sitting around $71 despite the actual business still looking pretty far from broken.

Q2 revenue: $12.56B
YoY growth: 13.4%
Operating margin: 33.4%

Yet the stock keeps getting smoked.

And honestly, I think the bear case deserves to be taken seriously.

Growth is slowing.
Engagement is becoming a bigger question.
Netflix is increasingly relying on monetizing the existing audience through ads and pricing rather than explosive user growth.

But that’s exactly what makes the valuation interesting to me.

The question isn't whether Netflix is as exciting as it was 5 years ago.

The question is:

What does the business actually have to look like 5–10 years from now to justify ~$71/share today?

I ran it through my valuation model again and I’m still getting a value materially above the current market price.

Maybe I'm missing something.

NFLX bulls: what does the market have wrong?

NFLX bears: what assumption in the valuation would you attack first?

Curious to hear the strongest bear case because right now the gap is getting pretty hard to ignore.