Netflix (NASDAQ:NFLX) Stock Price Down 1.1% - Should You Sell?

Key Points

• Netflix shares fell 1.1% on Thursday, trading between $85.59 and $86.36, below the prior close of $87.35, on lighter-than-average volume.
• Despite the pullback, the article highlights bullish sentiment around Netflix’s ad business, with some analysts forecasting about $3 billion in ad revenue by 2026 and citing upside from live events, new ad formats, and improved ad-tech tools.
• Wall Street remains generally positive: Netflix holds a “Moderate Buy” consensus with an average price target of $114.82, even though some recent commentary warns the stock may still be in a broader bear-market trend.

Shares of Netflix, Inc. (NASDAQ:NFLX - Get Free Report) were down 1.1% on Thursday . The company traded as low as $85.59 and last traded at $86.36. Approximately 38,245,528 shares changed hands during trading, a decline of 15% from the average daily volume of 44,910,355 shares. The stock had previously closed at $87.35.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Analysts and market-watchers are highlighting Netflix’s expanding ad business, with 2026 ad revenue estimates around $3 billion and new formats, live events, and ad-tech tools seen as adding upside. Article Title
• Positive Sentiment: Several bullish reports argue Netflix is undervalued after its pullback, pointing to the ad tier, improving free cash flow, and potential for a major rebound if growth trends continue. Article Title
• Positive Sentiment: Another bullish note upgraded Netflix to strong buy, saying the ad empire story is too compelling to ignore and could materially lift average revenue per user and engagement. Article Title
• Positive Sentiment: Netflix is also being viewed as a potential AI beneficiary after Ben Affleck said the AI company he sold to Netflix for $600 million could lead to “more human work,” adding to optimism around efficiency gains and cost savings. Article Title
• Neutral Sentiment: Netflix continues to attract attention from high-profile content deals, including a reported $100 million arrangement tied to Jay Shetty’s “On Purpose,” reinforcing its content spending strategy. Article Title
• Negative Sentiment: Some coverage remains cautious, with one article arguing Netflix is still in a bear market and another noting recent stock weakness versus the broader market, which may temper enthusiasm despite the bullish long-term case. Article Title

Analysts Set New Price Targets

A number of analysts have recently weighed in on NFLX shares. Huber Research raised shares of Netflix from a "strong sell" rating to a "strong-buy" rating in a research report on Friday, February 27th. Sanford C. Bernstein reissued a "buy" rating on shares of Netflix in a research report on Thursday, May 14th. Pivotal Research set a $96.00 price target on shares of Netflix and gave the stock a "hold" rating in a research report on Friday, April 17th. Barclays set a $110.00 price target on shares of Netflix and gave the stock an "equal weight" rating in a research report on Friday, April 17th. Finally, KeyCorp reissued an "overweight" rating and set a $115.00 price target (up from $108.00) on shares of Netflix in a research report on Tuesday, April 14th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have issued a Hold rating to the company. Based on data from MarketBeat, Netflix currently has an average rating of "Moderate Buy" and an average price target of $114.82.

Netflix Trading Down 1.1%

The stock has a market cap of $363.64 billion, a price-to-earnings ratio of 27.89, a P/E/G ratio of 1.11 and a beta of 1.55. The business's fifty day simple moving average is $93.45 and its 200 day simple moving average is $93.59. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping analysts' consensus estimates of $0.76 by $0.47. The firm had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The firm's revenue was up 16.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, research analysts predict that Netflix, Inc. will post 3.6 EPS for the current year.

Insider Buying and Selling

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the firm's stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $88.69, for a total value of $2,422,301.28. Following the sale, the chief executive officer directly owned 120,931 shares in the company, valued at approximately $10,725,370.39. This trade represents a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Reed Hastings sold 407,550 shares of the firm's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the sale, the director owned 3,940 shares in the company, valued at $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,422,769 shares of company stock valued at $135,144,073 in the last three months. 1.24% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Netflix

Hedge funds have recently added to or reduced their stakes in the stock. Cozad Asset Management Inc. raised its stake in shares of Netflix by 22.3% during the first quarter. Cozad Asset Management Inc. now owns 14,697 shares of the Internet television network's stock valued at $1,413,000 after purchasing an additional 2,676 shares in the last quarter. Maripau Wealth Management LLC raised its stake in shares of Netflix by 17.8% during the first quarter. Maripau Wealth Management LLC now owns 4,525 shares of the Internet television network's stock valued at $435,000 after purchasing an additional 684 shares in the last quarter. Alpine Woods Capital Investors LLC raised its stake in shares of Netflix by 23.6% during the first quarter. Alpine Woods Capital Investors LLC now owns 38,102 shares of the Internet television network's stock valued at $3,664,000 after purchasing an additional 7,281 shares in the last quarter. Allen Capital Group LLC raised its stake in shares of Netflix by 13.7% during the first quarter. Allen Capital Group LLC now owns 6,765 shares of the Internet television network's stock valued at $650,000 after purchasing an additional 816 shares in the last quarter. Finally, Summit Financial Wealth Advisors LLC bought a new stake in shares of Netflix during the first quarter valued at about $221,000. 80.93% of the stock is currently 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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