Netflix (NASDAQ:NFLX) Trading Down 5.8% - Here's Why

Key Points

• Netflix shares fell 5.8% on Monday, trading as low as $71.81 amid heavy volume of about 81.1 million shares, well above its average daily volume.
• Investor sentiment appears pressured by reports that Netflix is struggling to land major acquisitions, with some commentary blaming the selloff on disappointment over deal-making and renewed competition concerns.
• Despite the decline, analysts still point to solid fundamentals: Netflix beat its latest earnings and revenue estimates, while Wall Street’s consensus rating remains Moderate Buy with an average price target of $114.26.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) traded down 5.8% on Monday . The company traded as low as $71.81 and last traded at $72.88. 81,089,980 shares traded hands during trading, an increase of 80% from the average session volume of 45,035,691 shares. The stock had previously closed at $77.38.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix announced an expanded video podcast partnership with iHeartMedia and also bought a “Hot Ones” spinoff, signaling continued investment in original and creator-driven content that could help engagement and advertising growth. Netflix Buys a ‘Hot Ones’ Spinoff
• Positive Sentiment: Some coverage argues the stock may be attractively valued after its pullback, pointing to Netflix’s scale, large paid membership base, and still-strong profitability metrics. Buy, Hold, or Sell: Netflix Slipped Under $78. Is This Premium Streamer an Automatic Buy?
• Neutral Sentiment: Analyst-focused commentary notes that brokerage ratings and target-price discussions remain an active part of the debate around the stock, but no major new fundamentals were disclosed in those reports. Brokers Suggest Investing in Netflix (NFLX): Read This Before Placing a Bet
• Negative Sentiment: Several reports say the stock is falling because investors are disappointed by Netflix’s inability to land major acquisitions, with headlines specifically pointing to failed or lost deals and renewed anxiety about competition. Netflix Stock Sinks To 52-Week Low — What's Going On?
• Negative Sentiment: Analysts at Citizens JMP reportedly warned against “catching the falling knife,” reinforcing bearish sentiment after the stock’s steep decline and fresh 52-week lows. Netflix Stock Slump Continues: Citizens JMP Warns Against Catching the Falling Knife
• Negative Sentiment: Commentary from multiple outlets highlights continued weakness in the share price, with the latest drop tied to worries that Netflix is no longer getting the growth boost investors expected from deal-making or stock-split enthusiasm. Down 17%, Is Netflix a Buy After Walking Away From Warner Bros. and Roku?

Wall Street Analysts Forecast Growth

NFLX has been the subject of several recent research reports. Cfra upgraded Netflix from a "hold" rating to a "buy" rating and set a $115.00 price target for the company in a research report on Friday, March 6th. New Street Research upped their price objective on Netflix from $96.00 to $102.00 in a research report on Friday, April 17th. President Capital raised their price objective on shares of Netflix from $133.00 to $134.00 and gave the stock a "buy" rating in a research note on Tuesday, March 31st. The Goldman Sachs Group lowered shares of Netflix from a "neutral" rating to an "underweight" rating in a report on Thursday. Finally, Erste Group Bank cut shares of Netflix from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $114.26.

Netflix Stock Down 5.8%

The company has a market cap of $306.88 billion, a price-to-earnings ratio of 23.54, a PEG ratio of 0.98 and a beta of 1.50. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The business has a fifty day moving average of $88.88 and a two-hundred day moving average of $90.01.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, beating the consensus estimate of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. During the same period last year, the company earned $6.61 earnings per share. Netflix's quarterly 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. As a group, equities analysts anticipate that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Insider Buying and Selling at Netflix

In related news, Director Reed Hastings sold 420,550 shares of the firm's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $95.49, for a total value of $40,158,319.50. Following the transaction, the director directly owned 3,940 shares of the company's stock, valued at approximately $376,230.60. This trade represents a 99.07% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradford L. Smith sold 35,990 shares of the firm's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the completion of the transaction, the director directly owned 79,690 shares in the company, valued at $6,177,568.80. This represents a 31.11% 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. Over the last quarter, insiders sold 1,349,019 shares of company stock valued at $123,105,721. Insiders own 1.24% of the company's stock.

Hedge Funds Weigh In On Netflix

A number of hedge funds have recently made changes to their positions in the company. Militia Capital Management LLC purchased a new stake in shares of Netflix in the first quarter valued at approximately $590,000. FAS Wealth Partners Inc. lifted its position in Netflix by 2.7% during the first quarter. FAS Wealth Partners Inc. now owns 12,140 shares of the Internet television network's stock worth $1,167,000 after buying an additional 320 shares in the last quarter. Rathbones Group PLC lifted its position in Netflix by 53.7% during the first quarter. Rathbones Group PLC now owns 1,266,693 shares of the Internet television network's stock worth $121,793,000 after buying an additional 442,520 shares in the last quarter. Robinswood Financial LLC purchased a new position in Netflix during the first quarter worth approximately $62,000. Finally, Pine Valley Investments Ltd Liability Co boosted its stake in Netflix by 35.3% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 68,837 shares of the Internet television network's stock worth $6,619,000 after buying an additional 17,964 shares during 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.

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.