Netflix (NASDAQ:NFLX) Shares Down 1.2% – Here’s Why
by Jessica Moore · The Cerbat GemNetflix, Inc. (NASDAQ:NFLX – Get Free Report)’s share price traded down 1.2% during mid-day trading on Monday . The company traded as low as $92.91 and last traded at $93.23. 36,567,571 shares traded hands during mid-day trading, a decline of 11% from the average session volume of 40,929,141 shares. The stock had previously closed at $94.39.
More Netflix News
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Holiday viewing tailwind — Christmas streaming demand could boost Q4 engagement and ad/ARPU metrics, a near-term revenue positive if hours-watched climb. Disney Vs. Netflix: Christmas Streaming Wars And What It Means For The Stocks
- Positive Sentiment: Sector rotation into Communication Services — institutional flows favoring XLC (which holds NFLX) could support multiple expansion if investors rotate away from hardware/AI names into media and advertising-linked stocks.
- Neutral Sentiment: Analyst and retail interest is elevated — Netflix is a “trending” ticker with multiple write-ups and retrospectives; this increases volatility but doesn’t by itself change fundamentals. Netflix, Inc. (NFLX) Is a Trending Stock: Facts to Know Before Betting on It
- Neutral Sentiment: Short-interest report is noisy/odd — the published December short-interest figures show effectively zero shares and likely reflect a data anomaly rather than a real change in bearish positioning; not actionable until clarified.
- Negative Sentiment: Major financing tied to Warner bid raises leverage and execution risk — reports that Netflix is lining up ~$25 billion in bank financing for its Warner bid increase balance-sheet and regulatory risk, pressuring sentiment while deal uncertainty persists. Netflix Prepares $25 Billion in Bank Financing for Warner Deal
- Negative Sentiment: Takeover bid creates short-term volatility — coverage warns Netflix may see near-term pressure as the Warner/Bros contest could spur hostile bids, regulatory scrutiny, and dilution/leverage concerns. Should You Sell Netflix Stock Before It Wins the Warner Bros Takeover?
- Negative Sentiment: Heavy put activity — unusually large options trading (a ~37% jump in puts) signals short-term bearish bets or hedging demand, which can amplify downside price moves if sellers of puts or market makers hedge by selling shares.
- Negative Sentiment: Competitive pressure from YouTube — coverage highlighting YouTube’s daytime dominance underscores secular competition risks to engagement and ad revenue growth. YouTube Has a Firm Grip on Daytime TV
- Negative Sentiment: Ongoing takeover timeline and rival bids — timeline reporting on the Warner battle highlights sustained deal uncertainty and the potential for a protracted, value-destructive auction. The battle for Warner Bros.: A timeline of key developments
Analysts Set New Price Targets
Several research analysts have recently issued reports on the stock. Sanford C. Bernstein reiterated an “outperform” rating and issued a $125.00 target price on shares of Netflix in a research note on Wednesday, December 10th. Citigroup restated a “neutral” rating and issued a $129.50 price objective (up from $128.00) on shares of Netflix in a report on Friday, October 3rd. The Goldman Sachs Group cut their target price on Netflix from $131.00 to $130.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 30th. Cowen reissued a “buy” rating on shares of Netflix in a report on Monday, December 8th. Finally, Wall Street Zen downgraded Netflix from a “buy” rating to a “hold” rating in a report on Saturday, October 4th. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $129.68.
Check Out Our Latest Report on NFLX
Netflix Trading Down 0.1%
The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $395.70 billion, a PE ratio of 39.01 and a beta of 1.71. The stock has a 50 day moving average price of $106.30 and a 200-day moving average price of $116.75.
Netflix (NASDAQ:NFLX – Get Free Report) last posted its quarterly earnings data on Tuesday, October 21st. The Internet television network reported $5.87 EPS for the quarter, beating analysts’ consensus estimates of $0.69 by $5.18. The company had revenue of $11.32 billion during the quarter, compared to analysts’ expectations of $11.52 billion. Netflix had a return on equity of 41.86% and a net margin of 24.05%.Netflix’s revenue for the quarter was up 17.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.54 earnings per share. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. Sell-side analysts expect that Netflix, Inc. will post 24.58 earnings per share for the current year.
Insider Buying and Selling
In related news, insider David A. Hyman sold 314,620 shares of the business’s stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $109.98, for a total transaction of $34,603,166.08. Following the completion of the sale, the insider directly owned 316,100 shares in the company, valued at approximately $34,765,942.40. The trade was a 49.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Spencer Adam Neumann sold 26,000 shares of the stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $117.25, for a total transaction of $3,048,526.00. Following the completion of the transaction, the chief financial officer owned 36,910 shares in the company, valued at $4,327,734.41. The trade was a 41.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,619,840 shares of company stock valued at $181,648,613 in the last 90 days. 1.37% of the stock is owned by insiders.
Institutional Trading of Netflix
Several hedge funds have recently bought and sold shares of the stock. Imprint Wealth LLC purchased a new stake in Netflix in the 3rd quarter worth approximately $25,000. Retirement Wealth Solutions LLC bought a new position in shares of Netflix in the third quarter worth approximately $28,000. Legacy Investment Solutions LLC purchased a new stake in shares of Netflix in the second quarter worth $31,000. Steph & Co. raised its position in shares of Netflix by 188.9% during the 3rd quarter. Steph & Co. now owns 26 shares of the Internet television network’s stock valued at $31,000 after purchasing an additional 17 shares during the period. Finally, Stephens Consulting LLC lifted its stake in shares of Netflix by 150.0% during the 2nd 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 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.