Netflix (NASDAQ:NFLX) Trading Down 3.4% – Here’s What Happened
by Scott Moore · The Cerbat GemNetflix, Inc. (NASDAQ:NFLX – Get Free Report)’s stock price fell 3.4% during trading on Monday . The stock traded as low as $75.01 and last traded at $76.02. 37,941,986 shares changed hands during mid-day trading, a decline of 22% from the average session volume of 48,511,547 shares. The stock had previously closed at $78.67.
Netflix News Roundup
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Wedbush reiterated an outperform rating on Netflix, giving some analyst support that may limit downside if the deal risk stabilizes. Netflix’s (NFLX) Outperform Rating Reiterated at Wedbush
- Positive Sentiment: CEO Ted Sarandos publicly defended the Warner deal as a “business deal, not a political deal,” which aims to reassure markets that management is focused on closing the transaction and handling political pressure. Netflix CEO Claps Back At President Trump
- Positive Sentiment: Several pieces argue there are identifiable catalysts that could trigger a rally (content wins, subscriber growth, or deal clarity), reminding investors that upside remains if Netflix clears regulatory/competitive hurdles. What Could Trigger Netflix Stock’s Next Rally?
- Neutral Sentiment: Reports say Netflix may pursue a “charm offensive,” including potential meetings with the White House, which could either ease political friction or merely prolong uncertainty depending on outcome. Netflix plans Trumpian charm offensive after Paramount ups bid
- Negative Sentiment: President Trump publicly demanded Netflix remove board member Susan Rice and warned of “consequences,” introducing an unprecedented political risk that could influence regulators or public sentiment. Trump demands Netflix fire Susan Rice as DOJ probes Warner deal
- Negative Sentiment: The DOJ has opened inquisitive antitrust scrutiny into the Netflix‑WBD tie-up (seeking producer/filmmaker input), increasing the risk the deal faces conditions, delays, or rejection. Regulatory outcomes are a key downside risk for the stock. DOJ probes Netflix’s WBD deal
- Negative Sentiment: Paramount Skydance submitted a higher bid for Warner Bros. Discovery, which could force Netflix to raise its offer (dilutive/expensive) or lose the deal — both outcomes pressure the stock. Paramount submits higher offer for Warner Bros Discovery
Analyst Ratings Changes
Several analysts have issued reports on NFLX shares. Robert W. Baird dropped their target price on Netflix from $150.00 to $120.00 and set an “outperform” rating for the company in a report on Friday, January 23rd. Arete Research upped their price objective on shares of Netflix from $83.30 to $108.40 and gave the company a “neutral” rating in a report on Tuesday, October 28th. New Street Research cut their price objective on shares of Netflix from $100.00 to $96.00 and set a “neutral” rating for the company in a research report on Thursday, January 22nd. Freedom Capital upgraded shares of Netflix from a “hold” rating to a “strong-buy” rating in a report on Tuesday, January 27th. Finally, KGI Securities raised shares of Netflix from a “neutral” rating to an “outperform” rating and set a $135.00 price target for the company in a research note on Monday, November 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and sixteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $116.08.
Check Out Our Latest Research Report on Netflix
Netflix Stock Down 3.4%
The company has a market capitalization of $320.97 billion, a PE ratio of 30.08, a PEG ratio of 1.40 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 business has a fifty day moving average of $86.91 and a 200 day moving average of $105.62.
Netflix (NASDAQ:NFLX – Get Free Report) last announced its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, beating 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 net margin of 24.30% and a return on equity of 43.26%. The business’s quarterly revenue was up 17.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.43 earnings per share. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Equities research analysts anticipate that Netflix, Inc. will post 24.58 EPS for the current year.
Insider Transactions at Netflix
In other news, CFO Spencer Adam Neumann sold 9,248 shares of Netflix stock in a transaction dated 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 in the company, valued at approximately $5,996,669.49. This trade represents a 11.14% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider David A. Hyman sold 23,439 shares of the business’s stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $88.11, for a total value of $2,065,210.29. Following the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $27,851,571. This represents a 6.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,399,163 shares of company stock valued at $129,899,103 in the last 90 days. Insiders own 1.37% of the company’s stock.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its holdings in shares of Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after buying an additional 257 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in Netflix by 16.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock valued at $912,000 after acquiring an additional 144 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in Netflix by 21.2% in the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after acquiring an additional 246 shares in the last quarter. Strategic Investment Advisors MI grew its holdings in shares of Netflix by 18.9% during the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock worth $1,036,000 after purchasing an additional 123 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its position in shares of Netflix by 12.1% during the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock worth $2,832,000 after purchasing an additional 228 shares in the last quarter. Institutional investors and hedge funds 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.