Netflix (NASDAQ:NFLX) Shares Down 1.1% – Here’s Why

Shares of Netflix, Inc. (NASDAQ:NFLX) traded down 1.1% during mid-day trading on Tuesday. The stock traded as low as $62.60 and last traded at $63.26. 26,820,907 shares traded hands during trading, a decline of 37% from the average daily volume of 42,696,727 shares. The stock had previously closed at $63.95.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s EMEA revenue grew 11% year over year in Q3 2026, indicating continued international momentum. The company’s regional chief also warned that maintaining growth depends on preserving creative freedom amid European regulation. Netflix boss on creativity and regulation in Europe
• Neutral Sentiment: Netflix is promoting its service with an international campaign featuring 35mm film and a social series about creatives’ unexpected viewing favorites. The effort may support brand engagement, but no direct financial impact was reported. Netflix embraces 35mm film in international campaign
• Neutral Sentiment: Netflix was mentioned among media stocks that declined as investors reacted to weakness in the newly combined Warner Bros.–Paramount’s film outlook. The article suggested the studio’s problems and debt were a more direct concern for that company than for Netflix. Skydance, Warner Bros., Netflix and Disney
• Negative Sentiment: Investor confidence has been challenged by signs of slower Netflix growth and evidence that viewers may be watching less. The company has responded with a content leadership shake-up, but the article frames the engagement concerns as a reason for the stock’s October decline. Why Netflix Stock Plunged 11% in October

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Citizens Jmp reiterated a “market perform” rating on shares of Netflix in a research note on Wednesday, October 21st. KGI Securities downgraded Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 target price for the company. in a research note on Friday, July 17th. William Blair reaffirmed an “outperform” rating on shares of Netflix in a report on Wednesday, October 21st. Wolfe Research cut Netflix from an “outperform” rating to a “peer perform” rating in a research report on Thursday, October 22nd. Finally, Itau BBA Securities dropped their price target on Netflix from $151.40 to $96.00 and set an “outperform” rating on the stock in a research report on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, seventeen have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $89.14.

Netflix Stock Performance

The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.43. The stock has a market cap of $259.77 billion, a price-to-earnings ratio of 18.28, a price-to-earnings-growth ratio of 0.97 and a beta of 1.62. The company’s 50-day simple moving average is $70.68 and its 200-day simple moving average is $80.86.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.82 by $0.05. The firm had revenue of $12.87 billion for the quarter, compared to analyst estimates of $12.87 billion. Netflix had a return on equity of 42.69% and a net margin of 29.69%. Netflix’s quarterly revenue was up 11.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.59 earnings per share. Analysts predict that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Theodore Sarandos sold 27,312 shares of Netflix stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $66.20, for a total value of $1,808,054.40. Following the completion of the sale, the chief executive officer directly owned 178,954 shares in the company, valued at $11,846,754.80. This trade represents a 13.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard Barton sold 720 shares of the stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $75.27, for a total transaction of $54,194.40. Following the completion of the transaction, the director owned 2,460 shares in the company, valued at $185,164.20. This represents a 22.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 61,712 shares of company stock valued at $4,051,144 over the last quarter. Company insiders own 1.24% of the company’s stock.

Hedge Funds Weigh In On Netflix

Several hedge funds have recently modified their holdings of the stock. Clal Insurance Enterprises Holdings Ltd bought a new position in shares of Netflix in the second quarter worth about $26,000. Pathway Financial Advisers LLC bought a new stake in Netflix during the 3rd quarter valued at approximately $26,000. Sawyer & Company Inc bought a new stake in Netflix during the 3rd quarter valued at approximately $27,000. Compound Global Advisors LLC purchased a new position in Netflix in the 2nd quarter worth approximately $29,000. Finally, Burnham & Co LLC purchased a new position in Netflix in the 2nd quarter worth approximately $29,000. Institutional investors own 80.93% of the company’s stock.

About Netflix

Netflix, Inc. is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand. Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.