Netflix (NASDAQ:NFLX) Trading Down 1.7% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX) fell 1.7% on Thursday . The stock traded as low as $82.35 and last traded at $83.16. 42,055,692 shares changed hands during mid-day trading, a decline of 20% from the average session volume of 52,734,961 shares. The stock had previously closed at $84.64.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q4 earnings beat and signs of a bottom — Netflix topped revenue and EPS expectations, showed strong free cash flow and put in technical support after the report, prompting some analysts to call a recovery and lift bullish sentiment. Netflix Just Set a Hard Low—Is This The Start of a 40% Rally?
• Positive Sentiment: Analyst buy-the-dip thesis — A visible buy-the-dip narrative has emerged after the post?earnings pullback, with some firms reiterating Buys and suggesting material upside if execution continues. This Analyst Thinks It’s Finally Time to Buy the Dip in Netflix. Here’s Why
• Positive Sentiment: Institutional/strategic support — High?profile investors and upgrades (including an upgrade at Freedom Capital and interest from Ark Invest) are providing conviction that the selloff has attracted long?term buyers. Netflix (NASDAQ:NFLX) Upgraded at Freedom Capital Ark Invest Is Betting on Netflix Stock Amid Warner Bros. Deal Drama. Should You?
• Neutral Sentiment: New content and live sports initiatives — Positive headlines about live sports/Olympics possibilities support growth narrative but are longer?term catalysts rather than immediate upside. Netflix Stock (NASDAQ:NFLX) Notches Up as the Olympics Become a Possibility
• Negative Sentiment: WBD acquisition overhang — The proposed $72B deal for Warner Bros. Discovery remains the biggest overhang: concerns about leverage, financing structure (possible all?cash), regulatory scrutiny and execution risk are keeping buyers cautious. Netflix (NFLX) Risks Balance Sheet Health in Pursuit of Warner Bros. (WBD)
• Negative Sentiment: Guidance and growth slowdown — Management’s outlook and commentary signaled slower near?term growth despite rising ad revenue expectations, fueling caution and analyst downgrades/position exits. Could This Be a Sign of Trouble for Netflix’s Stock? Polen Focus Growth Strategy Exited Netflix (NFLX) Amid Rising Regulatory and Leverage Concerns
• Negative Sentiment: Bear case persists — Some analysts still argue valuation and macro/competitive risks mean shares could fall further until the WBD deal outcome and growth trajectory are clarified. Netflix Has Further To Fall

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Weiss Ratings cut Netflix from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, January 22nd. Rosenblatt Securities restated a “neutral” rating and set a $94.00 target price (down from $105.00) on shares of Netflix in a research report on Friday, January 16th. UBS Group set a $104.00 price target on shares of Netflix in a research report on Tuesday. Cfra cut shares of Netflix from a “strong-buy” rating to a “hold” rating and set a $100.00 price target on the stock. in a research report on Monday, January 5th. Finally, Moffett Nathanson reduced their target price on Netflix from $140.00 to $115.00 and set a “buy” rating on the stock in a report on Wednesday, January 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and seventeen have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $116.17.

Netflix Stock Up 0.4%

The company has a market capitalization of $352.51 billion, a price-to-earnings ratio of 33.04, a P/E/G ratio of 1.48 and a beta of 1.71. The stock’s fifty day moving average price is $93.77 and its 200-day moving average price is $109.96. The company has a quick ratio of 1.33, a current ratio of 1.19 and a debt-to-equity ratio of 0.51.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.01. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The firm had revenue of $12.05 billion for the quarter, compared to analyst estimates of $11.97 billion. During the same period in the previous year, the business earned $0.43 EPS. The company’s revenue was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, sell-side analysts predict that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Activity at Netflix

In related news, CEO Gregory K. Peters sold 105,781 shares of Netflix stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $82.94, for a total transaction of $8,773,476.14. Following the completion of the transaction, the chief executive officer owned 122,140 shares in the company, valued at approximately $10,130,291.60. This trade represents a 46.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Spencer Adam Neumann sold 23,600 shares of the business’s stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $109.76, for a total value of $2,590,241.60. Following the transaction, the chief financial officer directly owned 39,310 shares in the company, valued at $4,314,508.36. The trade was a 37.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,355,640 shares of company stock worth $136,634,894 over the last ninety days. Company insiders own 1.37% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NFLX. First Financial Corp IN increased its holdings in shares of Netflix by 900.0% during the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 243 shares during the period. DiNuzzo Private Wealth Inc. raised its holdings in Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 239 shares in the last quarter. Turning Point Benefit Group Inc. lifted its position in shares of Netflix by 13,400.0% during the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 268 shares during the period. Imprint Wealth LLC acquired a new stake in shares of Netflix during the 3rd quarter worth $25,000. Finally, Retirement Wealth Solutions LLC acquired a new position in Netflix in the third quarter valued at about $28,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix Company Profile

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.