Netflix (NASDAQ:NFLX) Shares Down 2.5% – Here’s What Happened

Netflix, Inc. (NASDAQ:NFLX)’s share price traded down 2.5% during trading on Thursday. The stock traded as low as $67.79 and last traded at $67.85. Approximately 40,382,205 shares were traded during mid-day trading, a decline of 5% from the average session volume of 42,608,461 shares. The stock had previously closed at $69.58.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Deutsche Bank upgraded Netflix to Buy from Hold and set a $95 price target, arguing that international growth and artificial intelligence could provide a stronger long-term opportunity than recent U.S. engagement trends suggest. Deutsche Bank Makes a Contrarian Call on Netflix
• Positive Sentiment: Some analysts view the sell-off as a potential entry point, citing Netflix’s scale, strong profitability, global content library and possible growth from advertising, live programming and gaming. Q3 forecasts also call for double-digit earnings growth. Netflix Stock Sell-Off Could Be a Strong Entry Point
• Neutral Sentiment: Netflix is scheduled to report third-quarter results on October 20. The stock has declined after each of its last four reports, with three declines attributed primarily to forward guidance rather than quarterly results, making management’s outlook the key near-term catalyst. Netflix Reports Oct. 20
• Negative Sentiment: Co-CEO Ted Sarandos acknowledged that Netflix is “not growing as fast” as he would like. Viewership increased only 2% in the first half of 2026, reinforcing concerns that audience expansion and engagement are losing momentum. Netflix co-CEO Says Growth Is Slower Than Desired
• Negative Sentiment: Investors are also weighing competition from YouTube and whether Netflix’s expansion into gaming, podcasts, live events and advertising could dilute attention from its most effective original programming. Netflix’s Problem Isn’t Subscribers
• Negative Sentiment: Rising content commitments and heavier upfront spending are raising questions about free-cash-flow pressure as Netflix expands its global programming slate. Netflix’s Content Commitments Rise

Analyst Upgrades and Downgrades

NFLX has been the subject of several recent research reports. KeyCorp restated an “overweight” rating and issued a $92.00 price target (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. HSBC lowered shares of Netflix from a “buy” rating to a “hold” rating and lowered their price target for the stock from $96.00 to $76.00 in a research report on Tuesday, September 22nd. Citigroup reissued a “market perform” rating on shares of Netflix in a report on Monday, August 17th. Deutsche Bank Aktiengesellschaft upgraded shares of Netflix from a “hold” rating to a “buy” rating and decreased their target price for the stock from $100.00 to $95.00 in a research report on Tuesday. Finally, Rosenblatt Securities set a $75.00 price target on shares of Netflix and gave the company a “neutral” rating in a research report on Friday, July 17th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $95.27.

Netflix Stock Down 2.5%

The firm’s 50-day moving average price is $75.81 and its 200 day moving average price is $82.56. The company has a market capitalization of $282.52 billion, a price-to-earnings ratio of 21.36, a PEG ratio of 0.99 and a beta of 1.53. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating the consensus estimate of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the previous year, the business earned $0.72 earnings per share. The company’s revenue was up 13.4% on a year-over-year basis. On average, sell-side analysts forecast that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Insider Transactions at Netflix

In other news, CEO Theodore A. Sarandos sold 105,850 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the sale, the chief executive officer directly owned 206,266 shares in the company, valued at approximately $15,063,605.98. This trade represents a 33.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard N. Barton sold 2,160 shares of Netflix stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total transaction of $162,216.00. Following the sale, the director directly owned 246 shares in the company, valued at $18,474.60. This trade represents a 89.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 179,045 shares of company stock valued at $13,132,194. Company insiders own 1.24% of the company’s stock.

Institutional Trading of Netflix

Hedge funds have recently added to or reduced their stakes in the stock. American Capital Advisory LLC boosted its holdings in shares of Netflix by 0.8% in the 1st quarter. American Capital Advisory LLC now owns 13,990 shares of the Internet television network’s stock valued at $1,345,000 after purchasing an additional 109 shares in the last quarter. CWS Financial Advisors LLC raised its holdings in shares of Netflix by 3.2% during the 1st quarter. CWS Financial Advisors LLC now owns 3,612 shares of the Internet television network’s stock worth $347,000 after buying an additional 112 shares in the last quarter. Warner Group LLC lifted its position in shares of Netflix by 2.2% during the 1st quarter. Warner Group LLC now owns 5,230 shares of the Internet television network’s stock worth $503,000 after buying an additional 114 shares during the last quarter. Financial Avengers Inc. lifted its position in shares of Netflix by 9.8% during the 1st quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network’s stock worth $124,000 after buying an additional 115 shares during the last quarter. Finally, PAX Financial Group LLC lifted its position in shares of Netflix by 2.5% during the 1st quarter. PAX Financial Group LLC now owns 4,847 shares of the Internet television network’s stock worth $466,000 after buying an additional 116 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.