Netflix (NASDAQ:NFLX) Shares Down 2.5% – Time to Sell?

Shares of Netflix, Inc. (NASDAQ:NFLX) fell 2.5% during trading on Thursday. The company traded as low as $67.79 and last traded at $67.85. Approximately 40,382,205 shares traded hands during mid-day trading, a decline of 5% from the average daily volume of 42,608,461 shares. The stock had previously closed at $69.58.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Deutsche Bank upgraded Netflix to Buy from Hold and set a $95 price target, arguing that international growth and artificial intelligence could provide a stronger long-term opportunity than recent U.S. engagement trends suggest. Deutsche Bank Makes a Contrarian Call on Netflix
• Positive Sentiment: Some analysts view the sell-off as a potential entry point, citing Netflix’s scale, strong profitability, global content library and possible growth from advertising, live programming and gaming. Q3 forecasts also call for double-digit earnings growth. Netflix Stock Sell-Off Could Be a Strong Entry Point
• Neutral Sentiment: Netflix is scheduled to report third-quarter results on October 20. The stock has declined after each of its last four reports, with three declines attributed primarily to forward guidance rather than quarterly results, making management’s outlook the key near-term catalyst. Netflix Reports Oct. 20
• Negative Sentiment: Co-CEO Ted Sarandos acknowledged that Netflix is “not growing as fast” as he would like. Viewership increased only 2% in the first half of 2026, reinforcing concerns that audience expansion and engagement are losing momentum. Netflix co-CEO Says Growth Is Slower Than Desired
• Negative Sentiment: Investors are also weighing competition from YouTube and whether Netflix’s expansion into gaming, podcasts, live events and advertising could dilute attention from its most effective original programming. Netflix’s Problem Isn’t Subscribers
• Negative Sentiment: Rising content commitments and heavier upfront spending are raising questions about free-cash-flow pressure as Netflix expands its global programming slate. Netflix’s Content Commitments Rise

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on NFLX. Pivotal Research lowered their price objective on shares of Netflix from $96.00 to $70.00 and set a “hold” rating for the company in a research report on Friday, July 17th. President Capital dropped their price target on Netflix from $134.00 to $83.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Jefferies Financial Group reduced their price objective on Netflix from $110.00 to $90.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. China Intl Cap raised Netflix to a “strong-buy” rating in a report on Tuesday, July 21st. Finally, BMO Capital Markets reiterated an “outperform” rating on shares of Netflix in a research report on Tuesday, September 22nd. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Netflix currently has an average rating of “Moderate Buy” and a consensus target price of $95.27.

Netflix Trading Down 2.5%

The company has a market cap of $282.52 billion, a P/E ratio of 21.36, a PEG ratio of 0.99 and a beta of 1.53. The firm’s 50 day moving average is $75.81 and its two-hundred day moving average is $82.56. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period last year, the company earned $0.72 EPS. As a group, equities research analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Insider Buying and Selling

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the firm’s stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer owned 120,931 shares in the company, valued at approximately $8,893,265.74. This trade represents a 18.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Spencer Neumann sold 9,248 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $75.79, for a total transaction of $700,905.92. Following the completion of the transaction, the chief financial officer owned 73,787 shares in the company, valued at $5,592,316.73. This trade represents a 11.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 179,045 shares of company stock valued at $13,132,194 over the last 90 days. 1.24% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Netflix

Hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. bought a new position in shares of Netflix during the 2nd quarter worth approximately $24,902,221,000. Capital World Investors lifted its position in shares of Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares during the period. Invesco Ltd. lifted its position in shares of Netflix by 835.9% during the 4th quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network’s stock valued at $4,075,062,000 after acquiring an additional 38,818,947 shares during the period. Capital Research Global Investors boosted its stake in Netflix by 800.2% during the fourth quarter. Capital Research Global Investors now owns 42,367,807 shares of the Internet television network’s stock worth $3,972,406,000 after acquiring an additional 37,661,365 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Netflix in the second quarter worth $1,906,482,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.