Netflix (NASDAQ:NFLX) Trading Down 1.4% - Here's What Happened

Key Points

• Netflix stock fell 1.4% on Wednesday, trading as low as $87.50 and last changing hands at $88.09, with volume well below average.
• Recent news has been bullish for Netflix’s ad business: Bank of America said the company’s ad-supported tier now tops 250 million monthly viewers globally, up sharply from a year ago, as live sports and new markets help scale the offering.
• Wall Street remains broadly positive, with analysts maintaining a Moderate Buy consensus and an average price target of $114.82, even as some investors remain cautious after the stock’s strong run and recent insider selling.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) traded down 1.4% on Wednesday . The company traded as low as $87.50 and last traded at $88.09. 23,240,279 shares were traded during trading, a decline of 49% from the average session volume of 45,816,313 shares. The stock had previously closed at $89.33.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bank of America said Netflix’s ad-supported tier now exceeds 250 million monthly viewers globally, up sharply from 94 million a year ago, suggesting the ad business is scaling faster than expected as Netflix expands live sports and enters new markets. Netflix ad-supported tier tops 250M monthly viewers as sports push deepens
• Positive Sentiment: Analysts are becoming more constructive after Netflix’s recent advertiser presentation, with Wall Street sentiment improving on the back of stronger ad product momentum. Netflix Sentiment Improves After Video Streamer's Upfront Presentation
• Positive Sentiment: Research from Omdia projects that Amazon, Netflix, and Google could capture half of the rapidly growing $81 billion connected TV advertising market by 2030, reinforcing Netflix’s long-term ad revenue opportunity. Omdia: Amazon, Netflix and Google to Capture Half of $81 Billion CTV Advertising Market by 2030
• Positive Sentiment: Netflix’s partnership with the NFL is drawing attention, with the company set to showcase its platform during five NFL games this year, which could help attract new subscribers and advertisers. Why Netflix and the NFL Could Be a Perfect Match
• Neutral Sentiment: Commentary about Netflix potentially becoming a trillion-dollar company and articles calling it one of the best stocks in Mark Cuban’s portfolio are supportive, but they are mostly valuation-focused rather than new business developments. Is Netflix the Next Trillion-Dollar Company?
• Negative Sentiment: Some recent pieces frame Netflix as “cheap” relative to its historical valuation and debate whether the stock can continue to rerate, which may reflect investor caution after a strong run. Buy, Sell or Hold Netflix at $90?

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Daiwa Securities Group raised their target price on shares of Netflix from $97.00 to $102.00 and gave the company an "outperform" rating in a research note on Thursday, April 23rd. Sanford C. Bernstein reaffirmed a "buy" rating on shares of Netflix in a research note on Thursday, May 14th. Rothschild & Co Redburn set a $120.00 target price on shares of Netflix in a research note on Wednesday, January 21st. Erste Group Bank downgraded shares of Netflix from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Finally, Oppenheimer set a $120.00 price target on shares of Netflix and gave the company an "outperform" rating in a research report on Friday, April 17th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $114.82.

Netflix Stock Down 1.4%

The company has a market cap of $370.93 billion, a P/E ratio of 28.45, a P/E/G ratio of 1.14 and a beta of 1.55. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. The company's 50-day moving average is $94.36 and its two-hundred day moving average is $94.50.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.47. The company 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 quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter last year, the firm earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, equities analysts predict that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Spencer Adam Neumann sold 9,253 shares of the firm's stock in a transaction that occurred 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 owned 73,787 shares in the company, valued at approximately $6,563,353.65. This trade represents a 11.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Reed Hastings sold 407,550 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.13, for a total transaction 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. This represents a 99.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,422,769 shares of company stock valued at $135,144,073 in the last ninety days. Corporate insiders own 1.24% of the company's stock.

Institutional Investors Weigh In On Netflix

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Hobbs Group Advisors LLC purchased a new position in shares of Netflix during the 1st quarter worth $836,000. Arete Wealth Advisors LLC boosted its stake in shares of Netflix by 45.8% during the 1st quarter. Arete Wealth Advisors LLC now owns 29,063 shares of the Internet television network's stock worth $2,794,000 after acquiring an additional 9,124 shares during the last quarter. TrueWealth Financial Partners purchased a new position in shares of Netflix during the 1st quarter worth $219,000. Western Wealth Management LLC boosted its stake in shares of Netflix by 39.3% during the 1st quarter. Western Wealth Management LLC now owns 74,925 shares of the Internet television network's stock worth $7,204,000 after acquiring an additional 21,135 shares during the last quarter. Finally, Financial Avengers Inc. boosted its stake in shares of Netflix by 9.8% during the 1st quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network's stock worth $124,000 after acquiring an additional 115 shares during the last quarter. Hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.