Netflix (NASDAQ:NFLX) Shares Down 3.4% – What’s Next?

Shares of Netflix, Inc. (NASDAQ:NFLX) were down 3.4% on Tuesday . The company traded as low as $79.62 and last traded at $79.94. Approximately 49,314,293 shares were traded during trading, a decline of 5% from the average daily volume of 51,753,172 shares. The stock had previously closed at $82.76.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Ad business momentum — Netflix’s ad tier is showing strong growth (reported ~$1.5B in ad revenue), supporting a new growth engine and higher margin potential. Netflix’s Ad Revenue Surges to $1.5 Billion
• Positive Sentiment: Analyst support — recent broker coverage includes upgrades/positives (Freedom Capital Markets upgrade to Buy; Bernstein reiterates Buy), which can help cushion downside if deal progress continues. Freedom Capital Markets Upgrades Netflix To Buy Bernstein Remains a Buy on Netflix
• Neutral Sentiment: Warner Bros. vote timeline — reports say Warner Bros. Discovery shareholders are likely to hold a vote on the transaction in March, which is a near‑term corporate milestone investors will watch for deal clearance or conditions. Warner Bros’ shareholders likely to hold vote on Netflix deal in March: Report
• Neutral Sentiment: Options market signal — short‑term options “max pain” analysis points to an $88 level by Feb. 20, suggesting traders are positioning for continued near‑term rangebound action. Netflix Max Pain Points to a Price of $88
• Negative Sentiment: Heightened regulatory/antitrust scrutiny — Netflix co‑CEO Ted Sarandos was questioned by a Senate panel about competitive effects of the proposed Warner Bros. deal; lawmakers flagged consumer and labor concerns that raise the chance of regulatory hurdles. Netflix co‑CEO faces grilling by US Senate panel over Warner Bros deal
• Negative Sentiment: Political and reputational risk — at the Senate hearing one senator publicly accused Netflix of promoting certain content to children, which adds a political/PR angle that could complicate regulatory optics. Netflix co‑CEO grilled by US senators over Warner Bros. Discovery merger
• Negative Sentiment: Talent and production friction — a German voice‑actors boycott over an AI‑training clause creates operational and PR headwinds in local markets and highlights labor tensions around tech use. German voice actors boycott Netflix over AI training concerns
• Negative Sentiment: Insider selling & deal skepticism — recent CEO stock sales and commentary about regulatory obstacles have amplified investor concern that the bidding/approval process could be protracted or costly. Insider Selling: Netflix CEO Sells Stock The Biggest Obstacle to Netflix Acquiring Warner Bros.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on NFLX shares. UBS Group set a $104.00 price objective on shares of Netflix in a research report on Tuesday, January 27th. Benchmark restated a “hold” rating on shares of Netflix in a research note on Tuesday, January 13th. Moffett Nathanson decreased their price target on Netflix from $140.00 to $115.00 and set a “buy” rating for the company in a report on Wednesday, January 21st. Arete Research increased their price objective on Netflix from $83.30 to $108.40 and gave the company a “neutral” rating in a report on Tuesday, October 28th. Finally, Jefferies Financial Group reissued a “buy” rating on shares of Netflix in a research report on Wednesday, January 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and seventeen have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $116.17.

Netflix Price Performance

The firm has a market capitalization of $337.52 billion, a PE ratio of 31.63, a P/E/G ratio of 1.48 and a beta of 1.71. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.51. The company has a fifty day moving average price of $93.28 and a two-hundred day moving average price of $109.54.

Netflix (NASDAQ:NFLX) last released 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. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The company had revenue of $12.05 billion for the quarter, compared to analyst estimates of $11.97 billion. During the same quarter in the previous year, the company posted $0.43 earnings per share. The firm’s revenue was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Sell-side analysts forecast that Netflix, Inc. will post 24.58 earnings per share for the current year.

Insider Transactions at Netflix

In other news, Director Reed Hastings sold 426,290 shares of the company’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $91.67, for a total value of $39,078,004.30. Following the completion of the sale, the director directly owned 3,940 shares of the company’s stock, valued at approximately $361,179.80. This represents a 99.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Bradford L. Smith sold 31,790 shares of the stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $88.86, for a total transaction of $2,824,859.40. Following the sale, the director owned 79,690 shares of the company’s stock, valued at $7,081,253.40. This trade represents a 28.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 967,530 shares of company stock worth $93,977,519 over the last 90 days. Company insiders own 1.37% of the company’s stock.

Institutional Trading of Netflix

Several institutional investors and hedge funds have recently added to or reduced their stakes in NFLX. EWA LLC grew its stake in shares of Netflix by 904.2% in the 4th quarter. EWA LLC now owns 7,682 shares of the Internet television network’s stock valued at $720,000 after purchasing an additional 6,917 shares during the last quarter. Centerpoint Advisory Group lifted its holdings in shares of Netflix by 900.0% during the fourth quarter. Centerpoint Advisory Group now owns 6,420 shares of the Internet television network’s stock worth $602,000 after purchasing an additional 5,778 shares during the period. NewEdge Wealth LLC grew its position in Netflix by 1,296.2% in the 4th quarter. NewEdge Wealth LLC now owns 212,701 shares of the Internet television network’s stock valued at $19,943,000 after buying an additional 197,467 shares during the last quarter. Stiles Financial Services Inc increased its stake in Netflix by 403.7% in the 4th quarter. Stiles Financial Services Inc now owns 6,775 shares of the Internet television network’s stock valued at $635,000 after buying an additional 5,430 shares during the period. Finally, Triton Financial Group Inc increased its stake in Netflix by 926.9% in the 4th quarter. Triton Financial Group Inc now owns 22,295 shares of the Internet television network’s stock valued at $2,090,000 after buying an additional 20,124 shares during the period. 80.93% of the stock is owned by hedge funds and other institutional investors.

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.