https://investlikealejandro.substack.com/p/netflix-a-case-study-in-rational

🎬 How I bought a hated stock in June 2022 and saw a 535% return

Jul 16, 2025

Introduction: Netflix down 70%

In June 2022, I added Netflix (NFLX) to my portfolio on eToro—right when most investors were fleeing. The stock had plummeted over 70% from its highs, sentiment was at rock bottom, and analysts were raising serious concerns about subscriber growth, competition, and saturation.

But what I saw was different.

I saw a company with a powerful business model, enduring moats, and the ability to adapt and emerge stronger. This post is a deep dive into why I invested in Netflix and how it fit my Value Growth Strategy. It’s a real example of how I apply my investment philosophy and checklist methodology to buy great companies in times of fear.

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Key Highlights

• Netflix returned +535% in my portfolio since purchase.
• Bought during a time of maximum fear, after a 70%+ decline.
• Fundamental analysis showed durable moats, pricing power, and adaptability.
• Passed my checklist with high scores on fundamentals and technicals.
• Growth outlook remains strong, especially in advertising, and gaming.

Here an screenshot of my position of NETFLIX in eToro: