Netflix (NASDAQ:NFLX) Shares Down 1.9% - Should You Sell?

Key Points

• Netflix shares fell 1.9% to $76.41 amid broader pressure on growth-oriented technology and media stocks, trading below the 200-day moving average of $84.42.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and average price target of $96.53; Evercore raised its target to $110, citing improving subscriber trends and potential growth from live events and short-form video.
• Netflix delivered year-over-year revenue growth of 13.4% and slightly exceeded quarterly EPS expectations, while institutional investors increased holdings; however, recent analyst downgrades and insider selling highlight valuation and growth concerns.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s stock price fell 1.9% during mid-day trading on Wednesday . The stock traded as low as $76.31 and last traded at $76.41. Approximately 25,215,890 shares traded hands during trading, a decline of 41% from the average session volume of 42,730,984 shares. The stock had previously closed at $77.90.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Evercore raised its Netflix price target to $110, citing improving subscriber trends in the United States and Japan. Customer surveys also pointed to stronger engagement and retention, supporting the view that Netflix can continue expanding beyond its core streaming business. Netflix Shares Jump After Evercore Raises Price Target To $110
• Positive Sentiment: Evercore identified live events and short-form video as potential new growth engines that could increase viewing frequency and reduce subscriber churn. Netflix’s heavy investment in content—approximately $9.9 billion during the first half of 2026—also reinforces its competitive positioning. Netflix Stock Jumps as Wall Street Sees a New Growth Engine
• Positive Sentiment: Bill Ackman’s Pershing Square rebuilt its Netflix position in the second quarter, while 14 of 22 prominent investors reportedly increased their stakes. The renewed institutional interest suggests some investors view the lower valuation as attractive. 22 Prominent Investors Hold Netflix Stock
• Neutral Sentiment: Recent investor letters offer conflicting assessments: Weitz highlighted Netflix’s potential new growth engine, while Parnassus discussed factors that weighed on the company during the second quarter. These views support a longer-term debate rather than a clear near-term catalyst.
• Negative Sentiment: Netflix has recently declined more than the broader market as macroeconomic friction and risk-off trading pressure growth-oriented technology and media stocks. Netflix Stock Edges Lower Tuesday: What's Happening?
• Negative Sentiment: Netflix and Meta have been among the most downgraded stocks recently, even though analysts retain bullish consensus ratings. The downgrades signal concerns about valuation or the pace of future growth and may be contributing to profit-taking. MarketBeat's Most Downgraded Stocks in Q3

Analyst Ratings Changes

Several equities analysts have recently weighed in on NFLX shares. TD Cowen reduced their price target on Netflix from $112.00 to $100.00 and set a "buy" rating for the company in a research report on Friday, July 17th. Rosenblatt Securities set a $75.00 target price on Netflix and gave the stock a "neutral" rating in a research note on Friday, July 17th. UBS Group reduced their target price on Netflix from $130.00 to $115.00 and set a "buy" rating for the company in a report on Friday, July 17th. Weiss Ratings cut Netflix from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, June 26th. Finally, New Street Research increased their price target on shares of Netflix from $96.00 to $102.00 and gave the stock a "neutral" rating in a report on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $96.53.

Netflix Price Performance

The business has a 50 day simple moving average of $75.83 and a two-hundred day simple moving average of $84.42. The firm has a market capitalization of $318.17 billion, a P/E ratio of 24.05, a price-to-earnings-growth ratio of 1.13 and a beta of 1.53. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping the consensus estimate of $0.79 by $0.01. The company had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix's revenue was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.72 earnings per share. On average, sell-side analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Gregory Peters sold 27,312 shares of the stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the transaction, the chief executive officer owned 120,931 shares of the company's stock, valued at $8,893,265.74. This represents a 18.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Theodore Sarandos sold 105,850 shares of the firm's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the sale, the chief executive officer owned 206,266 shares in the company, valued at approximately $15,063,605.98. This trade represents a 33.91% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 179,045 shares of company stock worth $13,132,194. 1.24% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Netflix

Several institutional investors have recently modified their holdings of NFLX. BlackRock Inc. purchased a new position in shares of Netflix during the second quarter worth approximately $24,902,221,000. Geode Capital Management LLC grew 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 valued at $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Capital World Investors grew 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 valued at $8,376,656,000 after purchasing an additional 80,025,890 shares during the last quarter. Norges Bank purchased a new position in Netflix in the 4th quarter worth $5,803,248,000. Finally, Bank of America Corp DE raised its position in Netflix by 4.3% in the 1st quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network's stock worth $5,571,201,000 after purchasing an additional 2,376,349 shares during the period. 80.93% of the stock is currently owned by institutional investors.

Netflix Company Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.

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