Netflix (NASDAQ:NFLX) Stock Price Down 2% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX)’s stock price was down 2% during trading on Friday . The stock traded as low as $71.11 and last traded at $71.71. 35,753,002 shares were traded during trading, a decline of 22% from the average daily volume of 45,872,523 shares. The stock had previously closed at $73.17.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix expanded its agreement with AMC Global Media to stream all 371 episodes of The Walking Dead universe worldwide under a reported five-year, $500 million deal. The franchise should strengthen Netflix’s international content lineup, although the company will lose exclusive U.S. rights. Netflix expands The Walking Dead deal
• Positive Sentiment: Walmart-owned Flipkart partnered with Netflix to offer loyalty members a monthly mobile streaming subscription after qualifying purchases. The arrangement could improve customer retention and provide Netflix with additional mobile-user acquisition in India. Flipkart Netflix partnership
• Neutral Sentiment: Netflix’s August release slate includes returning series such as Outer Banks, which may help viewing momentum, though the commercial impact of individual releases remains uncertain. August streaming lineup
• Negative Sentiment: Investor commentary remains focused on Netflix’s quarterly revenue miss, marginal earnings-per-share beat, weaker-than-expected operating metrics and free cash flow, as well as reduced transparency around engagement data. These concerns have intensified comparisons with faster-growing technology peers. Netflix earnings opinions
• Negative Sentiment: Erste Group Bank cut its fiscal 2027 earnings estimate, adding to concerns that Netflix’s growth and profitability outlook may be moderating.
• Negative Sentiment: A producer sued Netflix for $105 million over an allegedly lost copy of an unreleased Nicolas Cage film. Although the financial exposure is uncertain, the litigation creates additional legal and reputational risk. Producer lawsuit against Netflix
• Negative Sentiment: Reported insider trading shows 32 Netflix open-market sales and no purchases over the past six months, a potential sentiment headwind even though insider sales may reflect personal or scheduled transactions.

Analyst Ratings Changes

A number of brokerages have issued reports on NFLX. Rosenblatt Securities set a $75.00 price target on Netflix and gave the company a “neutral” rating in a research note on Friday, July 17th. Citic Securities boosted their price objective on Netflix from $95.00 to $107.00 and gave the stock a “hold” rating in a research note on Monday, April 27th. Daiwa Securities Group upped their price objective on Netflix from $97.00 to $102.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. CLSA assumed coverage on Netflix in a research note on Monday, July 20th. They set an “outperform” rating for the company. Finally, Erste Group Bank lowered Netflix from a “buy” rating to a “hold” rating in a report on Monday, April 27th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and a consensus price target of $103.48.

Netflix Stock Down 2.0%

The business has a 50-day moving average price of $77.00 and a 200-day moving average price of $85.50. The company has a market capitalization of $298.60 billion, a price-to-earnings ratio of 22.57, a price-to-earnings-growth ratio of 0.92 and a beta of 1.52. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix’s revenue for the quarter was up 13.4% on a year-over-year basis. During the same quarter last year, the company posted $0.72 EPS. As a group, equities analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Netflix news, Director Reed Hastings sold 386,700 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $85.97, for a total value of $33,244,599.00. Following the completion of the transaction, the director directly owned 3,940 shares in the company, valued at $338,721.80. This trade represents a 98.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,253 shares of Netflix 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 transaction, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $6,563,353.65. This trade represents a 11.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 492,289 shares of company stock valued at $42,186,530. Company insiders own 1.24% of the company’s stock.

Hedge Funds Weigh In On Netflix

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Northside Capital Management LLC grew its holdings in shares of Netflix by 1,686.2% during the second quarter. Northside Capital Management LLC now owns 117,351 shares of the Internet television network’s stock valued at $8,379,000 after buying an additional 110,781 shares in the last quarter. Whitener Capital Management Inc. raised its position in Netflix by 9.6% during the second quarter. Whitener Capital Management Inc. now owns 16,515 shares of the Internet television network’s stock valued at $1,179,000 after buying an additional 1,445 shares during the period. Tema ETFs LLC lifted its stake in Netflix by 10.7% in the 2nd quarter. Tema ETFs LLC now owns 84,291 shares of the Internet television network’s stock worth $6,018,000 after acquiring an additional 8,120 shares in the last quarter. West Branch Capital LLC lifted its stake in Netflix by 3.2% in the 2nd quarter. West Branch Capital LLC now owns 33,421 shares of the Internet television network’s stock worth $2,386,000 after acquiring an additional 1,042 shares in the last quarter. Finally, Rise Advisors LLC boosted its position in Netflix by 7.7% during the 2nd quarter. Rise Advisors LLC now owns 3,982 shares of the Internet television network’s stock worth $284,000 after acquiring an additional 284 shares during the period. 80.93% of the stock is currently owned by hedge funds and other 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.