Netflix (NASDAQ:NFLX) Trading Down 1.2% – Here’s What Happened

Netflix, Inc. (NASDAQ:NFLX)’s stock price was down 1.2% during mid-day trading on Friday . The stock traded as low as $88.32 and last traded at $89.46. Approximately 55,403,369 shares traded hands during trading, an increase of 30% from the average daily volume of 42,582,016 shares. The stock had previously closed at $90.53.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Analysts and chart-watchers argue much bad news is priced in; MarketBeat notes Netflix is oversold, has attractive valuation metrics vs. recent highs, and highlights Jan. earnings as a potential catalyst. Is Netflix a Buy Ahead of Earnings? It Looks Like It
• Positive Sentiment: MarketBeat’s roundup flags technical signs of a bottom (oversold RSI, bullish MACD) and points to content wins and live-sports expansion as upside drivers into 2026. 3 Oversold Stocks Ready to Rebound in 2026
• Positive Sentiment: Netflix and AMC are warming relations, which could open theatrical windows and marketing partnerships that marginally boost content economics and franchise value. Is The Warming Relationship Between Netflix and AMC Theaters a Game Changer?
• Neutral Sentiment: EU digital-rule reporting says big tech (including Netflix) may avoid the strictest measures in an overhaul — a mixed regulatory backdrop but not an immediate headwind. Big Tech spared strict rules in EU digital rule overhaul
• Neutral Sentiment: Industry shift at CES: advertisers are prioritizing measurable performance over promises — a longer-term positive for ad-supported streaming monetization but not an immediate earnings swing. At CES, the ad industry stopped talking about price
• Neutral Sentiment: Commentary on content volume/AI (“infinite content”) underscores strategic execution risk — more content can retain users but raises costs and curation challenges. Top media strategist on Netflix ending its war on sleep
• Negative Sentiment: Market skepticism over the Warner Bros. deal is a primary drag: Invezz and others note the stock has fallen ~27–30% since June, accelerated after the $72B equity acquisition announcement due to debt, execution and integration concerns. Netflix stock: are markets mispricing the Warner deal impact?
• Negative Sentiment: Regulatory and antitrust risk rose: Paramount has told lawmakers the merger is “presumptively unlawful” and the Justice Department is involved, increasing uncertainty around deal clearance and timeline. Paramount Tells Lawmakers That Netflix-WBD Merger Is “Presumptively Unlawful”
• Negative Sentiment: Analyst and sell-side headwinds: CFRA cut NFLX to Hold and cut its target to $100 (from $130), and bearish research (Seeking Alpha) says the bear case strengthened after the sell-off — amplifying downside pressure until deal and earnings clarity arrive. Here’s Why CFRA Downgraded Netflix (NFLX) to Hold From Buy Netflix Update: Why Our Bear Case Strengthened

Wall Street Analyst Weigh In

Several equities analysts have weighed in on NFLX shares. UBS Group set a $142.00 target price on shares of Netflix in a report on Monday, December 8th. Wall Street Zen lowered shares of Netflix from a “buy” rating to a “hold” rating in a research report on Saturday, October 4th. President Capital upgraded Netflix from a “neutral” rating to a “buy” rating and set a $130.00 price objective for the company in a research report on Monday, November 3rd. BMO Capital Markets reiterated an “outperform” rating on shares of Netflix in a report on Monday, December 8th. Finally, Wolfe Research reduced their price objective on Netflix from $139.00 to $121.00 and set an “outperform” rating on the stock in a research report on Monday, December 15th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $129.95.

Netflix Price Performance

The company has a 50-day moving average of $101.50 and a two-hundred day moving average of $114.49. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The stock has a market capitalization of $379.07 billion, a PE ratio of 37.37 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share for the quarter, missing the consensus estimate of $6.96 by ($1.09). Netflix had a return on equity of 41.86% and a net margin of 24.05%.The company had revenue of $11.51 billion for the quarter, compared to analysts’ expectations of $11.51 billion. During the same quarter in the previous year, the company earned $5.40 earnings per share. The company’s revenue was up 17.2% on a year-over-year basis. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. Sell-side analysts predict that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insider Activity at Netflix

In other news, CEO Theodore A. Sarandos sold 20,270 shares of the company’s stock in a transaction on Tuesday, November 4th. The stock was sold at an average price of $109.21, for a total transaction of $2,213,646.16. Following the completion of the sale, the chief executive officer directly owned 151,680 shares in the company, valued at $16,564,669.44. This represents a 11.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Reed Hastings sold 426,290 shares of Netflix stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $91.67, for a total value of $39,078,004.30. Following the completion of the transaction, the director owned 3,940 shares in the company, valued at $361,179.80. The trade was a 99.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 1,598,370 shares of company stock worth $168,251,193. 1.37% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of NFLX. Imprint Wealth LLC acquired a new position in shares of Netflix during the 3rd quarter valued at $25,000. Legacy Investment Solutions LLC purchased a new position in Netflix in the second quarter valued at about $31,000. Retirement Wealth Solutions LLC acquired a new position in shares of Netflix during the third quarter worth about $28,000. Stephens Consulting LLC lifted its stake in shares of 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 in the last quarter. Finally, Rossby Financial LCC purchased a new stake in shares of Netflix in 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.