Netflix (NASDAQ:NFLX) Announces Quarterly Earnings Results

Netflix (NASDAQ:NFLX) released its quarterly earnings results on Thursday. The Internet television network reported $0.80 earnings per share for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01, FiscalAI reports. The company had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.

Netflix Stock Up 0.9%

NASDAQ:NFLX traded up $0.67 on Thursday, reaching $74.35. The stock had a trading volume of 62,337,775 shares, compared to its average volume of 44,906,895. The company has a 50-day moving average of $80.80 and a 200 day moving average of $87.17. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The stock has a market cap of $313.07 billion, a P/E ratio of 24.01, a price-to-earnings-growth ratio of 0.93 and a beta of 1.52. Netflix has a 12-month low of $70.86 and a 12-month high of $127.75.

Insider Buying and Selling

In other Netflix news, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the sale, the chief executive officer owned 284,804 shares in the company, valued at $25,054,207.88. This represents a 8.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Adam Neumann sold 9,253 shares of the firm’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $88.95, for a total value of $823,054.35. Following the transaction, the chief financial officer owned 73,787 shares in the company, valued at $6,563,353.65. This trade represents a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 899,839 shares of company stock worth $80,141,661 over the last 90 days. 1.24% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Netflix

Institutional investors have recently made changes to their positions in the stock. Sivia Capital Partners LLC boosted its holdings in shares of Netflix by 21.2% during the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after acquiring an additional 246 shares during the period. Schnieders Capital Management LLC. grew its holdings in Netflix by 12.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock worth $2,832,000 after buying an additional 228 shares in the last quarter. Brighton Jones LLC increased its position in Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after acquiring an additional 257 shares during the period. Aster Capital Management DIFC Ltd lifted its holdings in Netflix by 72.0% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 375 shares of the Internet television network’s stock worth $35,000 after purchasing an additional 157 shares during the period. Finally, 1248 Management LLC boosted its holdings in shares of Netflix by 900.0% in the fourth quarter. 1248 Management LLC now owns 620 shares of the Internet television network’s stock valued at $58,000 after acquiring an additional 558 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the stock. Barclays reissued a “reduce” rating on shares of Netflix in a research report on Thursday. Phillip Securities increased their price objective on shares of Netflix from $100.00 to $110.00 in a report on Monday, April 20th. Needham & Company LLC restated a “buy” rating on shares of Netflix in a report on Friday, April 17th. President Capital increased their price target on shares of Netflix from $133.00 to $134.00 and gave the stock a “buy” rating in a research note on Tuesday, March 31st. Finally, Seaport Research Partners lifted their price target on shares of Netflix from $115.00 to $119.00 and gave the company a “buy” rating in a report on Friday, April 17th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $111.29.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts remain bullish, arguing Netflix still has long-term upside and can recover if it delivers solid subscriber engagement, ad-tier progress, and better-than-expected results. Netflix set to report earnings as investors focus on engagement trends, strategic priorities
• Positive Sentiment: Options traders are bracing for a large post-earnings move, suggesting the report could be a catalyst for a meaningful rebound if management surprises to the upside. Netflix Last-Minute Q2 Earnings Alert: Options Traders Brace for a Large Post-Report Swing in NFLX Stock
• Neutral Sentiment: Wall Street is split on the earnings setup, with some previews saying the key issue is whether Netflix can answer questions about engagement and growth, while others point to a potentially volatile but not clearly directional reaction. Live: Will Netflix’s Q2 Earnings Tonight Spark a Rebound for the Stock?
• Neutral Sentiment: There is also attention on Netflix’s broader strategy, including possible expansion into live channels, gaming, and acquisition ideas such as Letterboxd, but these are still more about long-term positioning than near-term earnings impact. Netflix’s move to buy Letterboxd sends a key signal to investors
• Negative Sentiment: Bearish coverage highlights slowing consumer demand versus rivals like HBO Max, Paramount+, and Hulu, plus ongoing concerns about viewer engagement and subscriber churn. Ca$htag$: NFLX Losing Steam in Streaming Space as PSKY, WBD & DIS See More Demand
• Negative Sentiment: Several reports note that NFLX has fallen sharply this year and is trading near multiyear lows, reflecting investor skepticism that earnings alone will fix slowing growth and elevated competition. Netflix’s next growth chapter hinges on keeping viewers hooked

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.