Netflix (NASDAQ:NFLX) Trading Down 2.8% – Here’s What Happened

Netflix, Inc. (NASDAQ:NFLX)’s share price traded down 2.8% on Friday . The stock traded as low as $72.51 and last traded at $73.37. Approximately 46,065,275 shares traded hands during mid-day trading, an increase of 2% from the average session volume of 45,190,617 shares. The stock had previously closed at $75.47.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some investors see Netflix’s valuation and long-term operating momentum as attractive ahead of earnings, with articles arguing the stock may be a buy before the July 16 report as the company still has strong financial execution. Here Is the Main Reason to Buy Netflix Before July 16
• Positive Sentiment: Several analysts and market commentators remain constructive, saying the recent pullback may have gone too far and that Netflix could still surprise positively on earnings if subscriber trends and margins hold up. Netflix (NFLX) Bears Have Gone Too Far Ahead of Q2
• Neutral Sentiment: Netflix remains a heavily watched stock ahead of earnings, with option traders positioning for a larger move around the July 16 report. 3 Options Strategies for Netflix Earnings Next Week
• Negative Sentiment: Reports that Netflix is considering live TV channels and bundling third-party services suggest management is worried about slowing engagement, raising concerns that growth is becoming harder to sustain. Netflix Is Exploring Live TV and Bundles as It Struggles to Keep Viewers Hooked
• Negative Sentiment: Investors are reacting to signs that viewer retention may be weakening, and the strategic pivot toward live programming is being interpreted as a response to competitive and engagement pressures. Netflix Weighs Live TV Push
• Negative Sentiment: Commentary ahead of earnings says Netflix has been in a funk for nearly a year, with the stock still facing investor concern over slowing engagement and the need for a new growth catalyst. Should You Buy Netflix Stock Before July 16? Here’s My Honest Answer

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Weiss Ratings lowered shares of Netflix from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, June 26th. HSBC increased their price objective on Netflix from $106.00 to $114.00 and gave the stock a “buy” rating in a report on Friday, April 10th. Jefferies Financial Group reduced their price objective on Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a research report on Wednesday, June 10th. Pivotal Research set a $96.00 target price on Netflix and gave the stock a “hold” rating in a research report on Friday, April 17th. Finally, KeyCorp reaffirmed an “overweight” rating and set a $115.00 price target (up from $108.00) on shares of Netflix in a research note on Tuesday, April 14th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $113.65.

Netflix Price Performance

The stock has a market capitalization of $308.95 billion, a P/E ratio of 23.70, a PEG ratio of 0.93 and a beta of 1.52. The stock’s fifty day moving average is $81.78 and its 200-day moving average is $87.63. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41.

Netflix (NASDAQ:NFLX) last posted its earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping the consensus estimate of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The firm had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. During the same period in the prior year, the business posted $6.61 earnings per share. The business’s quarterly revenue was up 16.2% on a year-over-year basis. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities analysts anticipate that Netflix, Inc. will post 3.6 earnings per share for the current year.

Insider Buying and Selling at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 9,253 shares of the company’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $88.95, for a total transaction of $823,054.35. Following the completion of the sale, the chief financial officer owned 73,787 shares of the company’s stock, valued at $6,563,353.65. This represents a 11.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director owned 79,690 shares in the company, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 899,839 shares of company stock worth $80,141,661 in the last 90 days. Company insiders own 1.24% of the company’s stock.

Institutional Trading of Netflix

Several large investors have recently modified their holdings of NFLX. Pacific Sun Financial Corp increased its holdings in shares of Netflix by 1.6% in the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network’s stock worth $688,000 after purchasing an additional 9 shares during the period. Brass Tax Wealth Management Inc. grew its position in Netflix by 3.2% during the third quarter. Brass Tax Wealth Management Inc. now owns 288 shares of the Internet television network’s stock worth $345,000 after buying an additional 9 shares in the last quarter. Beaird Harris Wealth Management LLC grew its position in Netflix by 9.6% during the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock worth $137,000 after buying an additional 10 shares in the last quarter. Monograph Wealth Advisors LLC increased its stake in Netflix by 1.8% in the 2nd quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network’s stock worth $913,000 after acquiring an additional 12 shares during the last quarter. Finally, Wayfinding Financial LLC raised its holdings in shares of Netflix by 1.6% in the 3rd quarter. Wayfinding Financial LLC now owns 754 shares of the Internet television network’s stock valued at $903,000 after acquiring an additional 12 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

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.