Netflix's stock price has nearly doubled over the last year, leading to a premium valuation of 45 times expected earnings for the next year.
Investors are becoming cautious about a potential sell-off despite positive fundamentals and growth prospects such as live events and ad business.
Netflix's revenue growth is expected to slow down in the coming years compared to the surge during the pandemic, with analysts remaining mostly bullish on the stock.
While some investors are concerned about the high valuation and limited upside potential, others believe Netflix's market dominance justifies the premium.