Netflix (NASDAQ:NFLX) Stock Price Down 1.3% – Here’s What Happened

Netflix, Inc. (NASDAQ:NFLX) dropped 1.3% during trading on Thursday . The stock traded as low as $76.59 and last traded at $77.00. Approximately 29,986,296 shares changed hands during trading, a decline of 39% from the average daily volume of 49,313,691 shares. The stock had previously closed at $77.99.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Analysts and investors with large positions are defending Netflix’s outlook — Sanford C. Bernstein reiterated a “buy” rating and investor Gary Black argues Netflix has the strategic edge and sees upside even if the WBD outcome is uncertain, supporting a potential rebound. Bernstein Buy Rating Gary Black Bullish
• Positive Sentiment: Management is publicly confident the deal will close and that the acquisition would accelerate growth — messaging that can reassure investors about strategic rationale and integration upside. Sarandos Says Warner Bros. Purchase Will Accelerate Netflix Growth
• Neutral Sentiment: Reuters reports Netflix has ample cash and room to increase its offer if Paramount Skydance (PSKY) bumps its bid — this confirms financial flexibility but also signals a possible higher purchase price if the auction continues. Reuters: Netflix Has Ample Room
• Neutral Sentiment: Netflix granted WBD a short waiver to let Paramount present a “best and final” offer — a procedural move that could bring clarity quickly but also raises the chance of a bidding war or higher final price. MarketBeat: WBD Seeks PSKY Best-and-Final
• Negative Sentiment: High-profile criticism is surfacing: director James Cameron sent a scathing letter to an antitrust lawmaker opposing the Netflix–WBD deal, highlighting increased regulatory and political risk that could complicate approval. Cameron Antitrust Letter
• Negative Sentiment: Market anxiety over the bidding war and broader competitive threats (YouTube/short-form, IP/AI issues) is weighing on the stock; coverage notes Netflix at a 52-week low and recent share weakness tied to deal uncertainty. YouTube Threat Drives Netflix to 52-week Low Benzinga: Stock Slides

Wall Street Analysts Forecast Growth

NFLX has been the subject of several recent analyst reports. TD Cowen lowered their price target on Netflix from $115.00 to $112.00 and set a “buy” rating for the company in a report on Wednesday, January 21st. Freedom Capital upgraded Netflix from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, January 27th. Robert W. Baird cut their price objective on shares of Netflix from $150.00 to $120.00 and set an “outperform” rating on the stock in a research note on Friday, January 23rd. Piper Sandler reiterated a “positive” rating and set a $103.00 price target (down from $140.00) on shares of Netflix in a research report on Wednesday, January 21st. Finally, Phillip Securities raised shares of Netflix from a “sell” rating to a “moderate buy” rating and increased their target price for the stock from $95.00 to $100.00 in a research note on Monday, January 26th. One research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and sixteen have issued a Hold rating to the company’s stock. According to MarketBeat, Netflix presently has an average rating of “Moderate Buy” and a consensus price target of $116.08.

Netflix Stock Performance

The stock has a 50-day moving average of $87.58 and a 200 day moving average of $106.16. The stock has a market cap of $325.11 billion, a PE ratio of 30.47, a P/E/G ratio of 1.37 and a beta of 1.71. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51.

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

Insider Activity

In other Netflix news, Director Reed Hastings sold 390,970 shares of the business’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $83.63, for a total value of $32,696,821.10. Following the completion of the transaction, the director owned 3,940 shares in the company, valued at $329,502.20. The trade was a 99.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider David A. Hyman sold 5,727 shares of the business’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $81.06, for a total value of $464,230.62. Following the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $25,623,066. This represents a 1.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 1,399,163 shares of company stock worth $129,899,103. 1.37% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Netflix

Several hedge funds and other institutional investors have recently made changes to their positions in NFLX. First Financial Corp IN boosted its stake in Netflix by 900.0% in the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. lifted its holdings in shares of 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 purchasing an additional 239 shares during the last quarter. Turning Point Benefit Group Inc. lifted its holdings in shares of Netflix by 13,400.0% in the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 268 shares during the last quarter. Imprint Wealth LLC acquired a new stake in shares of Netflix in the 3rd quarter valued at about $25,000. Finally, Cornerstone Financial Management LLC purchased a new position in Netflix during the 4th quarter worth approximately $26,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

About Netflix

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.