Netflix (NASDAQ:NFLX) Trading Down 1.4% – Here’s Why

Shares of Netflix, Inc. (NASDAQ:NFLX) were down 1.4% on Wednesday . The company traded as low as $87.50 and last traded at $88.09. Approximately 23,240,279 shares were traded during mid-day trading, a decline of 49% from the average daily volume of 45,816,313 shares. The stock had previously closed at $89.33.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s ad-supported tier has surpassed 250 million monthly viewers, reinforcing the company’s advertising growth story and supporting the bull case for future revenue expansion. Netflix ad-supported tier tops 250M monthly viewers as sports push deepens
• Positive Sentiment: Netflix is deepening its partnership with iHeartMedia by streaming “The Breakfast Club” live daily, a sign it is pushing further into live and podcast-style programming that could broaden engagement and ad inventory. iHeartMedia and Netflix Deepen Partnership with Daily Live Video Stream of The Breakfast Club
• Positive Sentiment: CNBC highlighted Netflix as a “final trade,” suggesting some short-term trading interest from market watchers. IBM, ServiceNow, Netflix And A Basic Materials Stock: CNBC’s ‘Final Trades’
• Neutral Sentiment: BetterInvesting questioned whether Netflix is fairly valued after its recent report, which keeps the stock in “show-me” territory even after strong earnings and revenue growth. BetterInvesting™ Magazine Update on Netflix (NASDAQ: NFLX) and ExlService Holdings Inc. (NASDAQ: EXLS)
• Neutral Sentiment: Analyst commentary noted Netflix as a possible suitor if IMAX is sold, but this is speculative and not a confirmed deal driver. IMAX Potential Suitors Include Netflix, Apple, Wedbush Says
• Negative Sentiment: Canada’s new streaming rules would require Netflix to contribute a larger share of domestic revenue to Canadian content, raising compliance costs for the business. Canada Raises Streaming Content Requirement to 15% for Netflix, Disney, Amazon
• Negative Sentiment: Separate reporting also flagged higher costs from the same Canadian policy change, adding a modest regulatory headwind for Netflix and other streamers. Netflix, Spotify to face higher costs as CRTC changes rules

Wall Street Analyst Weigh In

A number of analysts have weighed in on NFLX shares. Guggenheim reiterated a “buy” rating and issued a $120.00 target price on shares of Netflix in a research note on Friday, May 15th. President Capital increased their target price on Netflix from $133.00 to $134.00 and gave the stock a “buy” rating in a research note on Tuesday, March 31st. UBS Group set a $104.00 target price on Netflix in a research note on Tuesday, January 27th. Weiss Ratings upgraded Netflix from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday, May 4th. Finally, Wells Fargo & Company started coverage on Netflix in a research note on Monday, March 9th. They issued an “equal weight” rating and a $105.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have assigned a Hold rating to the company. Based on data from MarketBeat, Netflix currently has a consensus rating of “Moderate Buy” and a consensus price target of $114.82.

Netflix Stock Performance

The stock has a market cap of $373.08 billion, a PE ratio of 28.62, a price-to-earnings-growth ratio of 1.12 and a beta of 1.55. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43. The firm has a 50 day moving average price of $94.00 and a 200 day moving average price of $94.20.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, beating the consensus estimate of $0.76 by $0.47. The firm had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business’s revenue for the quarter was up 16.2% on a year-over-year basis. During the same quarter last year, the firm posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, research analysts forecast that Netflix, Inc. will post 3.6 earnings per share for the current year.

Insider Activity

In related news, CFO Spencer Adam Neumann sold 57,260 shares of the firm’s stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $95.50, for a total transaction of $5,468,330.00. Following the sale, the chief financial officer owned 73,787 shares of the company’s stock, valued at $7,046,658.50. This trade represents a 43.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider David A. Hyman sold 5,722 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $88.08, for a total value of $503,993.76. Following the sale, the insider directly owned 316,100 shares in the company, valued at approximately $27,842,088. The trade was a 1.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 1,422,769 shares of company stock valued at $135,144,073. Company insiders own 1.24% of the company’s stock.

Institutional Investors Weigh In On Netflix

A number of institutional investors have recently added to or reduced their stakes in the stock. Groupama Asset Managment boosted its position in Netflix by 422.7% during the first quarter. Groupama Asset Managment now owns 313,533 shares of the Internet television network’s stock valued at $30,146,000 after purchasing an additional 253,553 shares in the last quarter. WNY Asset Management LLC bought a new stake in Netflix during the first quarter valued at about $238,000. Coastline Complete Wealth LLC bought a new stake in Netflix during the first quarter valued at about $224,000. Verus Capital Partners LLC boosted its position in Netflix by 1.5% during the first quarter. Verus Capital Partners LLC now owns 22,222 shares of the Internet television network’s stock valued at $2,137,000 after purchasing an additional 325 shares in the last quarter. Finally, Evolutionary Tree Capital Management LLC boosted its position in Netflix by 175.7% during the first quarter. Evolutionary Tree Capital Management LLC now owns 27,387 shares of the Internet television network’s stock valued at $2,633,000 after purchasing an additional 17,452 shares in the last quarter. Institutional investors own 80.93% of the company’s stock.

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.