Netflix (NASDAQ:NFLX) Trading Down 3.1% – Time to Sell?

Netflix, Inc. (NASDAQ:NFLX)’s stock price traded down 3.1% on Wednesday . The stock traded as low as $79.45 and last traded at $79.6790. 40,506,587 shares were traded during trading, a decline of 20% from the average session volume of 50,550,902 shares. The stock had previously closed at $82.21.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bullish takeaways: analysts and columnists argue recent weakness creates a long-term buying opportunity based on Netflix’s strong margins, content pipeline and subscriber economics. 3 Reasons to Buy Netflix Stock Now
• Positive Sentiment: Buy-the-dip narratives gaining traction: several pieces weigh whether the pullback is a chance to add exposure, emphasizing Netflix’s balance sheet and earnings power despite short-term deal risk. Netflix Stock Is Down 15%. Should You Buy the Dip?
• Neutral Sentiment: Netflix is publicly downplaying regulatory risk from the DOJ probe into its proposed Warner Bros. deal, calling scrutiny “ordinary course of business” — a calming tone but it doesn’t remove the substantive antitrust risk. Netflix exec calls DOJ probe into $82.7B Warner Bros deal ‘ordinary course business’
• Neutral Sentiment: Macro/media context: unrelated industry headlines (e.g., testimony in a social‑media trial likening platform “addiction” to bingeing) are getting airtime but have limited direct impact on Netflix’s near‑term fundamentals. Instagram chief likens social media addiction to being hooked on a Netflix show in trial testimony
• Negative Sentiment: Paramount substantially sweetened its hostile bid for Warner Bros. Discovery by adding a ticking fee and committing to cover the $2.8B breakup/termination cost — a direct threat to Netflix’s signed deal and the primary catalyst pressuring NFLX. Paramount sweetens Warner Bros bid with offer to pay Netflix break-up cost, other fees
• Negative Sentiment: Activist pressure: Ancora Capital has built a stake in Warner Bros. and is pushing the WBD board to engage with Paramount, signaling a meaningful chance the Netflix agreement could be supplanted or reopened. Ancora Capital builds stake in Warner Bros, plans to oppose Netflix deal
• Negative Sentiment: Market structure: commentary and arbitrage coverage (MarketBeat/others) highlight that Paramount’s ticking‑fee structure narrows the spread on WBD and increases the probability of a competing transaction — a clear negative for Netflix’s M&A thesis. Strategic Masterstroke: Paramount Adds a Ticking Fee to Warner Bros. Bid (NFLX)
• Negative Sentiment: Insider selling: Netflix CFO sold ~9,248 shares (disclosed SEC filing), which can be read negatively by some investors even if routine. SEC filing: CFO sells Netflix shares
• Negative Sentiment: Sentiment shift & analyst caution: multiple outlets and analysts point to slowing growth risks, deal uncertainty and higher volatility — a backdrop that keeps downward pressure on the stock until deal outcome or clearer fundamentals emerge. Is Netflix’s 10% Dip a Buying Opportunity or a Warning Sign?

Analyst Ratings Changes

A number of research analysts recently issued reports on NFLX shares. Loop Capital set a $104.00 price objective on shares of Netflix in a research note on Tuesday, January 27th. Rosenblatt Securities reissued a “neutral” rating and issued a $94.00 price target (down from $105.00) on shares of Netflix in a research note on Friday, January 16th. Huber Research cut shares of Netflix to a “buy” rating in a report on Friday, December 5th. Cfra Research cut shares of Netflix from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Finally, Freedom Capital upgraded Netflix from a “hold” rating to a “strong-buy” rating in a report on Tuesday, January 27th. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating and seventeen have assigned a Hold rating to the company’s stock. According to MarketBeat, Netflix currently has an average rating of “Moderate Buy” and a consensus price target of $116.08.

Netflix Trading Down 3.1%

The stock has a market cap of $336.42 billion, a PE ratio of 31.53, a PEG ratio of 1.45 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 firm has a fifty day simple moving average of $90.17 and a two-hundred day simple moving average of $107.83.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.55 by $0.01. The firm had revenue of $12.05 billion during the quarter, compared to analysts’ expectations of $11.97 billion. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The company’s revenue for the quarter was up 17.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, equities analysts expect that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Activity at Netflix

In other news, insider David A. Hyman sold 23,439 shares of the firm’s stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $88.11, for a total value of $2,065,210.29. Following the completion of the sale, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $27,851,571. This trade represents a 6.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Spencer Adam Neumann sold 9,248 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $81.27, for a total value of $751,584.96. Following the completion of the transaction, the chief financial officer owned 73,787 shares of the company’s stock, valued at approximately $5,996,669.49. This trade represents a 11.14% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,362,988 shares of company stock valued at $126,902,168 over the last 90 days. Company insiders own 1.37% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of NFLX. First Financial Corp IN grew its stake in shares of Netflix by 900.0% during the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 243 shares during the period. DiNuzzo Private Wealth Inc. grew its position in shares of Netflix by 885.2% during the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 239 shares in the last quarter. Turning Point Benefit Group Inc. increased its stake in Netflix by 13,400.0% in the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after acquiring an additional 268 shares during the last quarter. Imprint Wealth LLC bought a new stake in Netflix in the third quarter worth $25,000. Finally, Jessup Wealth Management Inc bought a new stake in Netflix during the fourth quarter worth approximately $27,000. 80.93% of the stock is owned by 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.