Netflix (NASDAQ:NFLX) Trading Down 1.4% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX) dropped 1.4% during trading on Tuesday . The company traded as low as $96.29 and last traded at $96.94. Approximately 40,897,001 shares traded hands during trading, a decline of 24% from the average daily volume of 53,541,461 shares. The stock had previously closed at $98.32.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Market reaction to Netflix walking away from the Warner Bros. Discovery deal is constructive — investors see the company as preserving cash, avoiding heavy leverage, and returning to a pure growth/streaming strategy that supports margins and long‑term equity upside. Free of Warner Bros., Netflix Is a Growth Stock Once Again
• Positive Sentiment: Netflix used the $2.8B breakup payment to make strategic deployments (including buying an AI startup tied to Ben Affleck) — a sign management is deploying capital to product/tech rather than debt‑funded M&A. How Do You Like Them Apples? Netflix Buys Ben Affleck’s AI Start‑Up.
• Positive Sentiment: Overall analyst consensus remains constructive: coverage shows a “Moderate Buy” consensus and many analysts still see upside from current levels, supporting investor confidence. Netflix, Inc. (NASDAQ:NFLX) Given Consensus Rating of “Moderate Buy” by Analysts
• Neutral Sentiment: Fresh coverage and TV mentions are keeping the name in focus (Wells Fargo resumed coverage, CNBC commentators named NFLX in trade lists) — this sustains liquidity and attention but adds mixed near‑term sentiment. Deep Dive Into Netflix Stock: Analyst Perspectives (32 Ratings)
• Neutral Sentiment: Disclosure that President Trump bought over $1.1M of Netflix bonds is a headline but has limited direct impact on equity fundamentals. Trump bought Netflix and Warner Bros bonds at height of bidding war with Paramount
• Negative Sentiment: Bank of America trimmed its price target to $125 (from $149), citing valuation and/or slower growth assumptions — a high‑profile PT cut that can pressure the stock and investor sentiment. BofA Cuts PT on Netflix, Inc. (NFLX) to $125 From $149 – Here’s Why
• Negative Sentiment: Wells Fargo set an Equal Weight rating with a $105 target and other outlets highlight valuation risk — growing ad revenue helps, but expectations may be high relative to near‑term growth, prompting caution. Is Netflix (NFLX) Pricing In Too Much Growth After Its Strong Multi Year Run
• Negative Sentiment: Insider selling: co‑founder Reed Hastings sold about $39.8M of stock — a visible transaction that can amplify downward pressure even if framed as portfolio rebalancing. Netflix Didn’t Get Warner, But Chairman Reed Hastings Just Cashed Out $39.8 Million In Stock
• Negative Sentiment: Several pieces highlight risk of a valuation pullback or a short‑term correction as growth expectations moderate — investors should watch guidance and ad growth metrics in upcoming reports. The Risks Stalling Netflix’s 2026 Momentum

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. President Capital boosted their price objective on Netflix from $120.00 to $133.00 and gave the stock a “buy” rating in a research note on Monday, March 2nd. HSBC lowered their target price on Netflix from $107.00 to $106.00 and set a “buy” rating for the company in a research note on Wednesday, January 21st. The Goldman Sachs Group reiterated a “neutral” rating and set a $100.00 price target (down from $112.00) on shares of Netflix in a research report on Wednesday, January 21st. BMO Capital Markets decreased their price objective on shares of Netflix from $143.00 to $135.00 and set an “outperform” rating on the stock in a report on Wednesday, January 21st. Finally, KeyCorp set a $110.00 price objective on shares of Netflix and gave the company an “overweight” rating in a research report on Friday, January 16th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and fourteen have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $114.67.

Netflix Trading Down 1.4%

The company has a market capitalization of $409.30 billion, a price-to-earnings ratio of 38.36, a P/E/G ratio of 1.41 and a beta of 1.68. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.19 and a current ratio of 1.19. The business’s 50-day simple moving average is $86.39 and its 200-day simple moving average is $103.39.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, topping the consensus estimate of $0.55 by $0.01. The company had revenue of $12.05 billion during the quarter, compared to analysts’ expectations of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. Netflix’s revenue was up 17.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, research analysts expect that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Activity

In other news, insider David A. Hyman sold 5,727 shares of the firm’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $81.06, for a total value of $464,230.62. Following the transaction, the insider directly owned 316,100 shares in the company, valued at $25,623,066. This trade represents a 1.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Cletus R. Willems sold 3,136 shares of the firm’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $82.67, for a total value of $259,253.12. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,520,133 shares of company stock worth $137,259,786. Corporate insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Netflix

Several hedge funds have recently added to or reduced their stakes in NFLX. First Financial Corp IN boosted its stake in Netflix by 900.0% during the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock worth $25,000 after acquiring an additional 243 shares during the last quarter. DiNuzzo Private Wealth Inc. increased its stake in Netflix by 885.2% in the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 239 shares in the last quarter. Turning Point Benefit Group Inc. raised its holdings in Netflix by 13,400.0% in the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 268 shares during the period. Imprint Wealth LLC bought a new position in shares of Netflix during the third quarter worth $25,000. Finally, Cornerstone Financial Management LLC bought a new position in shares of Netflix during the fourth quarter worth $26,000. Institutional investors and hedge funds 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.