Netflix (NASDAQ:NFLX) Stock Price Down 2% After Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX)’s share price was down 2% during mid-day trading on Wednesday after TD Cowen lowered their price target on the stock from $142.00 to $115.00. TD Cowen currently has a buy rating on the stock. Netflix traded as low as $87.95 and last traded at $88.55. Approximately 49,439,303 shares traded hands during mid-day trading, an increase of 18% from the average daily volume of 41,906,180 shares. The stock had previously closed at $90.32.

A number of other analysts have also recently issued reports on NFLX. Sanford C. Bernstein reissued an “outperform” rating and issued a $125.00 price objective on shares of Netflix in a research note on Wednesday, December 10th. Cfra Research lowered Netflix from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Cowen reiterated a “buy” rating on shares of Netflix in a research report on Tuesday. BMO Capital Markets reissued an “outperform” rating on shares of Netflix in a report on Monday, December 8th. Finally, Guggenheim reaffirmed a “buy” rating and set a $145.00 price objective on shares of Netflix in a report on Wednesday, October 22nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $128.59.

Insider Activity at Netflix

In other Netflix news, CEO Theodore A. Sarandos sold 20,270 shares of the business’s stock in a transaction that occurred 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 transaction, the chief executive officer owned 151,680 shares in the company, valued at $16,564,669.44. The trade was a 11.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Reed Hastings sold 426,290 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $91.67, for a total value of $39,078,004.30. Following the sale, the director directly owned 3,940 shares of the company’s stock, valued at $361,179.80. This represents a 99.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,598,370 shares of company stock worth $168,251,193 in the last three months. 1.37% of the stock is owned by insiders.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Ad‑tier momentum: Netflix reports its ad‑supported tier has surged (record ad quarter, plans to double ad revenue in 2025), which supports recurring revenue and monetization upside. Investor takeaway: structural revenue growth that can cushion M&A risks. Zacks: Ad‑Tier Growth
• Positive Sentiment: Analyst support: Several firms (including BMO, HSBC) have reiterated Buy/strong‑buy views citing fundamentals and ad‑driven growth, which limits downside and provides potential upside if M&A fears ease. TipRanks: Buy Rating Reaffirmed
• Neutral Sentiment: Volatility/derivative activity: Options players are pricing elevated volatility (calendar‑spread ideas circulated), reflecting uncertain near‑term newsflow around M&A and earnings; useful for traders but signals risk for buy‑and‑hold investors. Yahoo: Calendar Spread
• Neutral Sentiment: Earnings catalyst: Q4 estimates and key metrics (subs, ARPU, ad revenue) are in focus — solid fundamentals could spark a rebound, but results may be overshadowed by M&A headlines. Zacks: Countdown to Q4
• Negative Sentiment: All‑cash WBD offer risk: Multiple outlets report Netflix is preparing to convert its Warner Bros. Discovery bid to all‑cash to beat Paramount, which would significantly increase near‑term cash needs and could pressure balance sheet and valuations. Investor takeaway: heightened funding risk and exec uncertainty weigh on the stock. Reuters: All‑Cash Bid
• Negative Sentiment: EPS and financing concerns: Analysts warn an all‑cash structure would likely be a drag on FY‑2026 EPS and could force more financing or share dilution if not fully funded from cash. That math is keeping investors cautious. Seeking Alpha: EPS Drag
• Negative Sentiment: Political, legal and regulatory overhang: Public pushback (including comments from political figures) and lawsuits from rival bidders increase approval uncertainty and deal timelines — a major source of today’s risk‑off tone. Deadline: Political/Regulatory Risk
• Negative Sentiment: Immediate market reaction: Shares have dipped on these all‑cash rumors and takeover headlines — short‑term trading is being driven more by M&A risk than by fundamentals. Schaeffers: Stock Dips on Rumors

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. BG Investment Services Inc. purchased a new stake in shares of Netflix in the second quarter worth approximately $338,000. Sava Infond d.o.o. grew its holdings in Netflix by 25.1% during the second quarter. Sava Infond d.o.o. now owns 1,495 shares of the Internet television network’s stock worth $2,002,000 after buying an additional 300 shares in the last quarter. McGlone Suttner Wealth Management Inc. raised its position in Netflix by 1.4% in the 2nd quarter. McGlone Suttner Wealth Management Inc. now owns 989 shares of the Internet television network’s stock valued at $1,324,000 after buying an additional 14 shares during the last quarter. Boomfish Wealth Group LLC purchased a new stake in shares of Netflix in the second quarter valued at about $398,000. Finally, New York Life Investment Management LLC lifted its position in shares of Netflix by 1.2% during the 2nd quarter. New York Life Investment Management LLC now owns 57,951 shares of the Internet television network’s stock worth $77,604,000 after buying an additional 664 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Stock Down 2.0%

The stock has a fifty day moving average of $100.26 and a 200 day moving average of $113.71. 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 firm has a market capitalization of $375.21 billion, a P/E ratio of 36.99 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). The firm had revenue of $11.51 billion for the quarter, compared to the consensus estimate of $11.51 billion. Netflix had a net margin of 24.05% and a return on equity of 41.86%. Netflix’s revenue for the quarter was up 17.2% on a year-over-year basis. During the same period last year, the company posted $5.40 earnings per share. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. On average, research analysts anticipate that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Netflix Company Profile

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.