Netflix (NASDAQ:NFLX) Stock Price Down 1.1% - Here's What Happened

Key Points

• Netflix shares fell 1.1% on Friday, trading as low as $79.28 and ending at $80.34, with volume running below its average daily level.
• Despite the dip, recent analyst commentary remains mostly constructive: several firms reiterated Buy ratings or raised price targets, and MarketBeat’s average target stands at $114.39.
• The company’s latest earnings showed strong fundamentals, with EPS of $1.23 beating estimates and revenue rising 16.2% year over year, though some analysts say the stock lacks near-term catalysts and have trimmed targets.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s stock price dropped 1.1% during trading on Friday . The stock traded as low as $79.28 and last traded at $80.34. Approximately 35,202,940 shares changed hands during mid-day trading, a decline of 20% from the average daily volume of 44,144,395 shares. The stock had previously closed at $81.27.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jim Cramer said he “wants to buy Netflix,” which may reinforce bullish investor sentiment around the stock despite broader weakness in tech. Jim Cramer Says “I Want to Buy Netflix”
• Positive Sentiment: Several recent articles highlight upside potential, with Wall Street price targets implying meaningful gains from current levels and some analysts maintaining Buy ratings on Netflix. Mahaney Reiterates Buy on Netflix, Maintains $115 Price Target Amid Ad-Tier and International Expansion Upside
• Positive Sentiment: Long-term growth narratives remain intact, including Omdia’s forecast that Netflix could reach nearly 400 million subscribers by 2031, underscoring its global scale advantage. Omdia: Netflix to Reach 400 Million Subscribers by 2031, Maintaining Global Streaming Lead Despite Industry Consolidation
• Neutral Sentiment: Netflix is expanding engagement through gaming, including a FIFA World Cup video game exclusive for subscribers, which supports retention but is still an early-stage growth initiative. FIFA Deal Tests How Netflix Uses Games To Deepen Subscriber Engagement
• Negative Sentiment: Some analysts have cut price targets, saying Netflix lacks near-term catalysts to reaccelerate the stock, which is likely weighing on shares. Netflix Stock Gets Price-Target Cut On Lack Of Catalysts
• Negative Sentiment: The stock has also been dragged down since the last earnings report as investors focus on slower momentum and skepticism about what can drive the next leg higher. Here’s What Dragging Netflix (NFLX) Down

Analysts Set New Price Targets

NFLX has been the subject of several research analyst reports. DZ Bank restated a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Moffett Nathanson increased their target price on shares of Netflix from $115.00 to $120.00 and gave the stock a "buy" rating in a research report on Tuesday, April 14th. HSBC increased their target price on shares of Netflix from $106.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, April 10th. Morgan Stanley reiterated an "overweight" rating on shares of Netflix in a research report on Friday, April 17th. Finally, Pivotal Research set a $96.00 target price on shares of Netflix and gave the stock a "hold" rating in a research report on Friday, April 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have assigned a Hold rating to the stock. Based on data from MarketBeat, Netflix currently has an average rating of "Moderate Buy" and an average price target of $114.39.

Netflix Trading Down 1.1%

The company's 50 day moving average price is $91.23 and its 200 day moving average price is $91.19. The company has a market cap of $338.30 billion, a price-to-earnings ratio of 25.95, a price-to-earnings-growth ratio of 1.04 and a beta of 1.50. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41.

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

Insider Buying and Selling

In other Netflix news, CFO Spencer Adam Neumann sold 9,253 shares of the firm's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total value of $823,054.35. Following the sale, the chief financial officer directly owned 73,787 shares in the company, valued at $6,563,353.65. This trade represents a 11.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Theodore A. Sarandos sold 27,312 shares of the firm's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the transaction, the chief executive officer directly owned 284,804 shares of the company's stock, valued at $25,054,207.88. The trade was a 8.75% decrease in their ownership of the stock. 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. Over the last ninety days, insiders sold 1,313,029 shares of company stock worth $120,315,776. 1.24% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Netflix

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in shares of Netflix by 912.5% during the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after acquiring an additional 351,493,659 shares during the period. State Street Corp lifted its holdings in shares of Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after acquiring an additional 159,578,053 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Netflix by 892.0% during the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after acquiring an additional 89,558,684 shares during the period. Capital World Investors lifted its holdings in shares of Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after acquiring an additional 80,025,890 shares during the period. Finally, Price T Rowe Associates Inc. MD lifted its holdings in shares of Netflix by 685.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock worth $8,068,882,000 after acquiring an additional 75,107,069 shares during the period. 80.93% of the stock is owned by institutional investors.

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.

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