Netflix (NASDAQ:NFLX) Trading 3.1% Higher – Here’s Why
by Scott Moore · The Cerbat GemNetflix, Inc. (NASDAQ:NFLX – Get Free Report) was up 3.1% during mid-day trading on Friday . The company traded as high as $86.30 and last traded at $86.1420. Approximately 60,966,421 shares traded hands during mid-day trading, an increase of 9% from the average daily volume of 55,984,688 shares. The stock had previously closed at $83.54.
Key Stories Impacting Netflix
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Solid quarter and subscriber milestone — Netflix beat Q4 revenue/earnings estimates modestly and surpassed ~325 million paid subscribers, which supports the base streaming growth story and cash generation outlook. Netflix Just Topped 325 Million Subscribers
- Positive Sentiment: Institutional buying and options activity — Large call-volume and reported purchases by funds (e.g., ARK) show pockets of bullish positioning that can prop short-term upside amid the noise. Cathie Wood Loads Up on Netflix
- Neutral Sentiment: Mixed analyst commentary — Some firms reaffirm bullish views (e.g., Bernstein) while others trim targets; consensus remains split between “buy” and cautious views as models are re-run to account for the WBD deal and slower guidance. Analysts Share Mixed Remarks on Netflix
- Negative Sentiment: Acquisition battle and regulatory uncertainty — The takeover fight for Warner Bros. (Netflix’s ~$82.7B all-cash offer vs. Paramount/Skydance counterpressure) is escalating; that contest raises antitrust and financing risk and is the primary driver of investor caution. Netflix says Paramount bid ‘doesn’t pass sniff test’
- Negative Sentiment: All-cash structure and financing impact — Netflix amended the WBD offer to all cash and suspended buybacks, increasing near-term cash needs and removing a prior EPS support; that elevates leverage/financial risk if the deal proceeds. Netflix Just Upped Its Bid for Warner Bros. to All Cash
- Negative Sentiment: Analysts cut targets and warn on guidance — Multiple shops lowered price targets or issued cautious notes after Q4 and the WBD bid (Baird, TD Cowen, HSBC and others), pressuring sentiment and weighing on valuation. Baird Adjusts Price Target on Netflix
- Negative Sentiment: Political/regulatory spotlight — Netflix executives will face hearings (Senate testimony reported), raising the chance of regulatory hurdles and prolonging deal uncertainty. Sarandos to Testify in Senate Hearing
- Negative Sentiment: Market-level re-rating — Despite solid results, the stock remains well below its 2025 highs as investors price in slower growth and deal risk; that macro re-pricing is keeping volatility elevated. Netflix Stock Drops 35%+ After Q4 as WBD Deal Risk Rises
Analysts Set New Price Targets
A number of brokerages have recently weighed in on NFLX. President Capital upgraded Netflix from a “neutral” rating to a “buy” rating and set a $130.00 price target on the stock in a research report on Monday, November 3rd. Weiss Ratings cut Netflix from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday. KGI Securities raised shares of Netflix from a “neutral” rating to an “outperform” rating and set a $135.00 target price on the stock in a research note on Monday, November 3rd. Arete Research boosted their target price on Netflix from $83.30 to $108.40 and gave the stock a “neutral” rating in a report on Tuesday, October 28th. Finally, KeyCorp set a $110.00 target price on Netflix and gave the stock an “overweight” rating in a research report on Friday, January 16th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $118.63.
View Our Latest Stock Analysis on NFLX
Netflix Trading Up 3.1%
The company’s 50-day moving average is $96.70 and its 200 day moving average is $111.60. The company has a current ratio of 1.19, a quick ratio of 1.33 and a debt-to-equity ratio of 0.51. The firm has a market cap of $365.01 billion, a PE ratio of 34.09 and a beta of 1.71.
Netflix (NASDAQ:NFLX – Get Free Report) last posted its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.01. The firm had revenue of $12.05 billion for the quarter, compared to analysts’ expectations of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The company’s quarterly revenue was up 17.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, sell-side analysts predict that Netflix, Inc. will post 24.58 EPS for the current year.
Insider Buying and Selling
In other news, insider David A. Hyman sold 314,620 shares of the stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $109.98, for a total value of $34,603,166.08. Following the completion of the sale, 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Gregory K. Peters sold 20,270 shares of the firm’s stock in a transaction on Tuesday, November 4th. The stock was sold at an average price of $109.57, for a total transaction of $2,220,943.36. Following the completion of the sale, the chief executive officer owned 127,810 shares in the company, valued at $14,003,886.08. This represents a 13.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 1,653,599 shares of company stock worth $173,141,263. 1.37% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On Netflix
Several institutional investors and hedge funds have recently bought and sold shares of NFLX. Imprint Wealth LLC bought a new stake in shares of Netflix in the 3rd quarter valued at approximately $25,000. Legacy Investment Solutions LLC acquired a new position in shares of Netflix during the second quarter valued at $31,000. Retirement Wealth Solutions LLC acquired a new position in Netflix during the 3rd quarter valued at about $28,000. Stephens Consulting LLC lifted its holdings in Netflix by 150.0% in the second quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network’s stock valued at $33,000 after buying an additional 15 shares during the period. Finally, Rossby Financial LCC bought a new position in shares of Netflix in the 2nd quarter worth $35,000. Institutional investors own 80.93% of the company’s stock.
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.