Netflix (NASDAQ:NFLX) Stock Price Down 1.4% – Here’s What Happened

Netflix, Inc. (NASDAQ:NFLX) shares traded down 1.4% during trading on Wednesday . The stock traded as low as $71.63 and last traded at $71.8360. Approximately 47,585,963 shares were traded during trading, an increase of 5% from the average session volume of 45,110,156 shares. The stock had previously closed at $72.82.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several articles argue the stock looks oversold after the plunge, citing Netflix’s strong cash flow, earnings power, and long-term growth potential as reasons it could be a value opportunity. Netflix (NFLX) Stock After 42% Slide In Year Looks Cheap On Cash Flow And Earnings
• Positive Sentiment: Netflix continues to expand beyond streaming, including a new original horror game and more gaming-related releases, which could support subscriber engagement and open a new revenue stream. Netflix Unveils New Horror Game to Jumpstart Interactive Offerings
• Positive Sentiment: Omnicom’s new AI ad partnership with Netflix underscores continued momentum in Netflix’s advertising business and reinforces the company’s ability to monetize its growing ad-supported audience. Omnicom (OMC) Launches Fan Graph And Teams Up With Netflix On AI Ads
• Neutral Sentiment: Some commentary remains constructive on Netflix’s long-term earnings potential, with analysts suggesting the current selloff may be overdone and that the stock still has meaningful upside from current levels. 4 Reasons Netflix Stock Is a Must-Own Now After the Plunge
• Neutral Sentiment: Broader media-industry pieces note that streaming and digital viewing remain resilient, which supports Netflix’s business backdrop even as competition stays intense. 4 Broadcast Radio & TV Stocks to Watch From a Challenging Industry
• Negative Sentiment: Investors are increasingly worried about Netflix’s growth narrative after the failed Warner Bros. Discovery deal and broader M&A speculation, with some fearing management may feel pressure to make a large acquisition. Netflix is growing but its stock price is shrinking, as the specter of M&A spooks investors
• Negative Sentiment: Recent articles also point to declining streaming-time share and fading audience momentum, which raises concerns that competition is taking a bigger bite out of Netflix’s dominance. Netflix’s (NFLX) Share of People’s Streaming Time Declines, Further Pressuring the Stock

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on NFLX shares. Evercore assumed coverage on Netflix in a research note on Friday, February 27th. They issued an “outperform” rating and a $115.00 price target for the company. Raymond James Financial reaffirmed a “market perform” rating on shares of Netflix in a research note on Thursday, May 14th. Barclays set a $110.00 target price on shares of Netflix and gave the company an “equal weight” rating in a research report on Friday, April 17th. Wedbush restated an “outperform” rating and set a $118.00 price target on shares of Netflix in a report on Thursday, April 16th. Finally, Oppenheimer set a $120.00 price target on shares of Netflix and gave the stock an “outperform” rating in a research report on Friday, April 17th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and an average price target of $114.26.

Netflix Trading Down 1.4%

The firm has a 50-day moving average of $87.70 and a 200 day moving average of $89.53. The company has a market cap of $302.49 billion, a P/E ratio of 23.20, a price-to-earnings-growth ratio of 0.93 and a beta of 1.50. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43.

Netflix (NASDAQ:NFLX) last issued its earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. During the same period in the previous year, the company posted $6.61 earnings per share. The firm’s revenue for the quarter 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, analysts predict that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Reed Hastings sold 386,700 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the transaction, the director directly owned 3,940 shares of the company’s stock, valued at $338,721.80. This represents a 98.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 on Thursday, May 7th. The shares were 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 directly owned 73,787 shares of the company’s stock, 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. Insiders have sold a total of 1,349,019 shares of company stock worth $123,105,721 over the last ninety days. 1.24% of the stock is owned by company insiders.

Institutional Trading of Netflix

Several large investors have recently made changes to their positions in NFLX. Vanguard Group Inc. boosted its holdings in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock worth $36,567,805,000 after acquiring an additional 351,493,659 shares in the last quarter. State Street Corp increased its holdings in shares of Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after acquiring an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Netflix by 892.0% during the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after acquiring an additional 89,558,684 shares in the last quarter. Capital World Investors raised its position in shares of Netflix by 859.1% during the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the period. Finally, Price T Rowe Associates Inc. MD raised its position in shares of Netflix by 685.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network’s stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

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.