Netflix (NASDAQ:NFLX) Trading Down 3% – Should You Sell?

Shares of Netflix, Inc. (NASDAQ:NFLX) dropped 3% on Friday . The company traded as low as $90.81 and last traded at $90.99. Approximately 40,891,557 shares changed hands during mid-day trading, a decline of 11% from the average daily volume of 45,873,660 shares. The stock had previously closed at $93.76.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: “Stranger Things” finale produced a meaningful theatrical lift (est. $25–30M) after a simultaneous streamer/theatrical debut — a proof point that Netflix IP can drive premium, incremental revenue and theater goodwill. ‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
• Positive Sentiment: Live sports on Netflix continue to scale: the Lions–Vikings Christmas game drew ~27.5M U.S. viewers, reinforcing Netflix’s ability to win big live audiences and diversify viewing drivers. Netflix says Lions-Vikings Christmas day game drew average of 27.5M U.S. viewers
• Positive Sentiment: Unusual options activity — ~343,465 call contracts traded (≈+29% vs. typical daily calls) — signals some investors are betting on upside, which can amplify intraday moves if positions are exercised/covered.
• Neutral Sentiment: Coverage and think pieces highlight that the theatrical experiment with “Stranger Things” was a $30M-plus windfall for cinemas; this is positive PR for Netflix but may not translate immediately to material earnings upside. How Netflix delivered a $30 million gift to movie theater owners with ‘Stranger Things’ finale
• Neutral Sentiment: Industry commentary and interviews (recaps, creator pieces) keep the IP conversation top of mind — helpful for long-term brand value but mixed for near-term cash flow impact. Variety / roundup on box office and coverage
• Negative Sentiment: Discussion of a potential Netflix acquisition of Warner Bros. Discovery is creating market anxiety — theater owners and some analysts warn of anti-competitive risk, uncertain theatrical windows, and the large financing/strategic burden of a big M&A move. How Theaters Can Protect Themselves Against a Netflix ($NFLX) Acquisition of Warner Bros. Discovery
• Negative Sentiment: Theater chains (e.g., AMC) are publicly touting box-office gains while flagging uncertainty about Netflix’s theatrical strategy if it were to own Warner Bros., which raises execution and regulatory questions that can pressure the stock. AMC Boasts ‘Stranger Things’ Success As Netflix’s Warner Bros. Bid Looms
• Negative Sentiment: Market reaction pieces note shares pulling back despite the content wins — investors may be trimming into the news amid technical weakness (price below 50- and 200-day moving averages) and headline uncertainty. Netflix Stock Sinks Into The Upside Down Despite ‘Stranger Things’ Success

Analyst Upgrades and Downgrades

NFLX has been the subject of a number of recent research reports. Canaccord Genuity Group reiterated a “buy” rating and issued a $152.50 target price on shares of Netflix in a research report on Monday, December 8th. Loop Capital cut their price objective on shares of Netflix from $135.00 to $132.50 in a report on Wednesday, October 22nd. Evercore ISI reissued an “outperform” rating and issued a $138.00 target price on shares of Netflix in a research note on Friday, December 5th. President Capital upgraded Netflix from a “neutral” rating to a “buy” rating and set a $130.00 price target for the company in a research report on Monday, November 3rd. Finally, TD Cowen cut their price target on Netflix from $145.00 to $142.50 and set a “buy” rating for the company in a report on Tuesday, October 7th. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $131.32.

Netflix Trading Down 3.0%

The stock has a market cap of $385.55 billion, a PE ratio of 38.01 and a beta of 1.71. The company’s 50-day moving average price is $103.01 and its 200 day moving average price is $115.42. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33.

Netflix (NASDAQ:NFLX) last posted its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.69 by $5.18. Netflix had a return on equity of 41.86% and a net margin of 24.05%.The company had revenue of $11.32 billion during the quarter, compared to analysts’ expectations of $11.52 billion. During the same quarter last year, the firm earned $0.54 earnings per share. The firm’s quarterly revenue was up 17.2% compared to the same quarter last year. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. On average, sell-side analysts forecast that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insider Buying and Selling

In other Netflix news, CEO Gregory K. Peters sold 20,270 shares of the stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $109.57, for a total transaction of $2,220,943.36. Following the completion of the transaction, the chief executive officer owned 127,810 shares of the company’s stock, valued at $14,003,886.08. This trade represents a 13.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Spencer Adam Neumann sold 23,600 shares of Netflix stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $109.76, for a total transaction of $2,590,241.60. Following the sale, the chief financial officer owned 39,310 shares of the company’s stock, valued at approximately $4,314,508.36. This represents a 37.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,172,080 shares of company stock valued at $129,173,189 over the last three months. Company insiders own 1.37% of the company’s stock.

Institutional Trading of Netflix

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Imprint Wealth LLC acquired a new position in Netflix during the 3rd quarter worth about $25,000. Legacy Investment Solutions LLC acquired a new position in Netflix in the 2nd quarter valued at about $31,000. Retirement Wealth Solutions LLC purchased a new stake in Netflix during the third quarter worth about $28,000. Stephens Consulting LLC increased its stake in Netflix by 150.0% during the second quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network’s stock worth $33,000 after purchasing an additional 15 shares during the period. Finally, Rossby Financial LCC acquired a new stake in shares of Netflix during the second quarter worth about $35,000. Hedge funds and other institutional investors 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.