Netflix (NASDAQ:NFLX) Stock Price Down 1.2% - Here's Why

Key Points

• Netflix shares fell 1.2% to $67.06 in Friday trading, with volume about 10% below the average session volume.
• Investor concerns center on slowing growth and rising competition from YouTube; viewership grew just 2% in the first half of 2026, and co-CEO Ted Sarandos said the company is not growing as quickly as desired.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and $95.27 price target, but investors will focus on forward guidance when Netflix reports third-quarter results on October 20.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) shares traded down 1.2% during trading on Friday. The stock traded as low as $66.75 and last traded at $67.06. 38,271,030 shares changed hands during trading, a decline of 10% from the average session volume of 42,629,906 shares. The stock had previously closed at $67.85.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Deutsche Bank upgraded Netflix to Buy, arguing that the market may be overlooking the company’s international growth opportunity. The analyst views artificial intelligence as more of a potential tailwind than a threat, although the price target was reduced. Netflix Stock Just Got a Stunning Upgrade After a Brutal 2026 Selloff
• Positive Sentiment: Netflix is emphasizing live programming, advertising-tier expansion and broader engagement initiatives to reignite viewing and counter YouTube’s growing share of consumer attention. Management also highlighted live content as a potential growth driver. Netflix Leans on Live TV as YouTube Competition Threatens Growth
• Neutral Sentiment: Netflix is scheduled to report third-quarter results on October 20. Investors may be especially focused on forward guidance because the stock has fallen after each of the company’s last four reports, with three declines driven primarily by outlook concerns rather than quarterly results. Netflix Reports Oct. 20
• Negative Sentiment: Co-CEO Ted Sarandos acknowledged that Netflix is “not growing as fast” as he wants, while viewership increased only 2% in the first half of 2026. The comments reinforced analyst concerns that growth is decelerating. Netflix co-CEO Says Growth Is Slower Than Desired
• Negative Sentiment: Analysts and investors are increasingly worried that YouTube is winning the “attention war,” contributing to weak engagement trends and recent downgrades. Netflix lost about 14% in September, and its valuation multiple has contracted sharply this year as confidence in future growth has weakened. Why Netflix Lost 14% in September

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on NFLX. Evercore reaffirmed an "outperform" rating and set a $110.00 target price (up from $100.00) on shares of Netflix in a research report on Monday, September 14th. UBS Group dropped their price target on Netflix from $130.00 to $115.00 and set a "buy" rating on the stock in a research note on Friday, July 17th. Moffett Nathanson lowered their target price on shares of Netflix from $115.00 to $100.00 and set a "buy" rating for the company in a research note on Friday, July 17th. Seaport Research Partners downgraded shares of Netflix from a "buy" rating to a "neutral" rating in a research report on Monday, July 20th. Finally, Robert W. Baird set a $90.00 price target on shares of Netflix and gave the stock an "outperform" rating in a report on Wednesday, July 22nd. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $95.27.

Netflix Trading Down 1.2%

The company has a market cap of $279.23 billion, a price-to-earnings ratio of 21.11, a price-to-earnings-growth ratio of 0.98 and a beta of 1.62. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The company's 50-day moving average is $75.79 and its 200 day moving average is $82.36.

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

Insider Buying and Selling

In other news, insider David A. Hyman sold 5,723 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the sale, the insider directly owned 316,100 shares in the company, valued at $23,027,885. The trade was a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Theodore A. Sarandos sold 105,850 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $73.03, for a total value of $7,730,225.50. Following the transaction, the chief executive officer directly owned 206,266 shares of the company's stock, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold a total of 179,045 shares of company stock worth $13,132,194 in the last ninety days. 1.24% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Netflix

Several institutional investors and hedge funds have recently added to or reduced their stakes in NFLX. Nykredit A S acquired a new position in shares of Netflix in the 2nd quarter valued at $105,697,000. University of Texas Texas AM Investment Management Co. boosted its stake in Netflix by 798.5% during the 4th quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network's stock worth $3,989,000 after purchasing an additional 37,807 shares during the period. Ritholtz Wealth Management boosted its stake in Netflix by 25.0% during the 1st quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network's stock worth $10,235,000 after purchasing an additional 21,260 shares during the period. Wittenberg Investment Management Inc. grew its position in Netflix by 889.8% during the 4th quarter. Wittenberg Investment Management Inc. now owns 14,530 shares of the Internet television network's stock worth $1,362,000 after purchasing an additional 13,062 shares during the last quarter. Finally, Westerkirk Capital Inc. grew its position in Netflix by 1,157.8% during the 4th quarter. Westerkirk Capital Inc. now owns 130,900 shares of the Internet television network's stock worth $12,273,000 after purchasing an additional 120,493 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.

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