Netflix (NASDAQ:NFLX) Trading Down 1.2% – What’s Next?

Netflix, Inc. (NASDAQ:NFLX)’s stock price dropped 1.2% during trading on Friday . The stock traded as low as $88.32 and last traded at $89.46. Approximately 55,403,369 shares were traded during trading, an increase of 30% from the average daily volume of 42,582,016 shares. The stock had previously closed at $90.53.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Analysts and chart-watchers argue much bad news is priced in; MarketBeat notes Netflix is oversold, has attractive valuation metrics vs. recent highs, and highlights Jan. earnings as a potential catalyst. Is Netflix a Buy Ahead of Earnings? It Looks Like It
• Positive Sentiment: MarketBeat’s roundup flags technical signs of a bottom (oversold RSI, bullish MACD) and points to content wins and live-sports expansion as upside drivers into 2026. 3 Oversold Stocks Ready to Rebound in 2026
• Positive Sentiment: Netflix and AMC are warming relations, which could open theatrical windows and marketing partnerships that marginally boost content economics and franchise value. Is The Warming Relationship Between Netflix and AMC Theaters a Game Changer?
• Neutral Sentiment: EU digital-rule reporting says big tech (including Netflix) may avoid the strictest measures in an overhaul — a mixed regulatory backdrop but not an immediate headwind. Big Tech spared strict rules in EU digital rule overhaul
• Neutral Sentiment: Industry shift at CES: advertisers are prioritizing measurable performance over promises — a longer-term positive for ad-supported streaming monetization but not an immediate earnings swing. At CES, the ad industry stopped talking about price
• Neutral Sentiment: Commentary on content volume/AI (“infinite content”) underscores strategic execution risk — more content can retain users but raises costs and curation challenges. Top media strategist on Netflix ending its war on sleep
• Negative Sentiment: Market skepticism over the Warner Bros. deal is a primary drag: Invezz and others note the stock has fallen ~27–30% since June, accelerated after the $72B equity acquisition announcement due to debt, execution and integration concerns. Netflix stock: are markets mispricing the Warner deal impact?
• Negative Sentiment: Regulatory and antitrust risk rose: Paramount has told lawmakers the merger is “presumptively unlawful” and the Justice Department is involved, increasing uncertainty around deal clearance and timeline. Paramount Tells Lawmakers That Netflix-WBD Merger Is “Presumptively Unlawful”
• Negative Sentiment: Analyst and sell-side headwinds: CFRA cut NFLX to Hold and cut its target to $100 (from $130), and bearish research (Seeking Alpha) says the bear case strengthened after the sell-off — amplifying downside pressure until deal and earnings clarity arrive. Here’s Why CFRA Downgraded Netflix (NFLX) to Hold From Buy Netflix Update: Why Our Bear Case Strengthened

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on NFLX shares. Morgan Stanley set a $120.00 price objective on shares of Netflix in a research note on Thursday, December 18th. KGI Securities raised shares of Netflix from a “neutral” rating to an “outperform” rating and set a $135.00 price target for the company in a report on Monday, November 3rd. Seaport Res Ptn upgraded shares of Netflix from a “hold” rating to a “strong-buy” rating in a report on Monday, October 6th. Pivotal Research cut shares of Netflix from a “buy” rating to a “hold” rating and decreased their price objective for the company from $160.00 to $105.00 in a research report on Monday, December 8th. Finally, Canaccord Genuity Group restated a “buy” rating and set a $152.50 target price on shares of Netflix in a research note on Monday, December 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Netflix has an average rating of “Moderate Buy” and a consensus price target of $129.95.

Netflix Stock Performance

The company has a market capitalization of $379.07 billion, a price-to-earnings ratio of 37.37 and a beta of 1.71. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33. The company’s fifty day simple moving average is $101.50 and its two-hundred day simple moving average is $114.49.

Netflix (NASDAQ:NFLX) last issued its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $6.96 by ($1.09). Netflix had a net margin of 24.05% and a return on equity of 41.86%. The company had revenue of $11.51 billion during the quarter, compared to analyst estimates of $11.51 billion. During the same quarter last year, the company posted $5.40 EPS. The business’s revenue for the quarter was up 17.2% compared to the same quarter last year. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. Equities research analysts predict that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Activity at Netflix

In related news, CFO Spencer Adam Neumann sold 23,600 shares of the firm’s stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $109.76, for a total transaction of $2,590,241.60. Following the transaction, the chief financial officer directly owned 39,310 shares in the company, valued at $4,314,508.36. This trade represents a 37.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider David A. Hyman sold 314,620 shares of Netflix stock in a transaction on Tuesday, November 4th. The stock was sold at an average price of $109.98, for a total transaction of $34,603,166.08. Following the completion of the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $34,765,942.40. This represents a 49.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,598,370 shares of company stock worth $168,251,193 over the last quarter. 1.37% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of NFLX. Silverlake Wealth Management LLC bought a new stake in shares of Netflix during the 4th quarter valued at about $227,000. Keb Asset Management LLC lifted its holdings in Netflix by 1,626.1% in the fourth quarter. Keb Asset Management LLC now owns 3,573 shares of the Internet television network’s stock worth $335,000 after acquiring an additional 3,366 shares during the last quarter. Sunflower Bank N.A. boosted its stake in Netflix by 897.9% in the fourth quarter. Sunflower Bank N.A. now owns 5,598 shares of the Internet television network’s stock valued at $525,000 after acquiring an additional 5,037 shares during the period. Congress Asset Management Co. grew its holdings in shares of Netflix by 886.2% during the fourth quarter. Congress Asset Management Co. now owns 1,381,176 shares of the Internet television network’s stock valued at $129,499,000 after purchasing an additional 1,241,124 shares during the last quarter. Finally, Overbrook Management Corp raised its position in shares of Netflix by 1,189.8% during the 4th quarter. Overbrook Management Corp now owns 63,664 shares of the Internet television network’s stock worth $5,969,000 after purchasing an additional 58,728 shares during the period. 80.93% of the stock is currently owned by institutional investors.

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.