Netflix (NASDAQ:NFLX) Trading Down 1.5% – Here’s What Happened

Netflix, Inc. (NASDAQ:NFLX) shares dropped 1.5% during trading on Tuesday . The company traded as low as $81.34 and last traded at $81.41. Approximately 34,595,182 shares were traded during trading, a decline of 22% from the average daily volume of 44,389,949 shares. The stock had previously closed at $82.64.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Omdia said Netflix could reach nearly 400 million subscribers by 2031, reinforcing the view that it remains the global streaming leader as scale and profitability become more important. Omdia: Netflix to Reach 400 Million Subscribers by 2031, Maintaining Global Streaming Lead Despite Industry Consolidation
• Positive Sentiment: Analyst and opinion pieces continue to frame the recent decline as a long-term buying opportunity, citing ad revenue growth, cash flow strength, and upside from international expansion. Mahaney Reiterates Buy on Netflix, Maintains $115 Price Target Amid Ad-Tier and International Expansion Upside
• Positive Sentiment: Netflix also expanded its mobile app across Asia and is doubling down on kids’ gaming, which supports engagement and retention outside of core streaming. Netflix expands revamped mobile app across Asia and doubles down on kids’ gaming
• Positive Sentiment: Netflix’s new FIFA-branded game deal shows it is using gaming to deepen subscriber engagement, adding another way to keep users inside its ecosystem. FIFA Deal Tests How Netflix Uses Games To Deepen Subscriber Engagement
• Neutral Sentiment: Jim Cramer’s comments that tech stocks may no longer reliably lead the market add to broader sector skepticism, which can weigh on Netflix sentiment even without company-specific bad news. Jim Cramer Discussed 15 Stocks, Including Broadcom, Netflix, and His Skepticism Toward Tech Stocks
• Neutral Sentiment: Multiple articles highlight that Netflix has lagged in 2026 and ask whether Roku is the better streaming pick, underscoring investor debate rather than a clear fundamental turning point. Netflix Is Down 12% in 2026, While Roku Is Up 11%. Which Streaming Stock Is the Better Buy in June?
• Neutral Sentiment: Jefferies cut its price target to $110 from $128 but kept a Buy rating, which is mixed for sentiment: supportive long term, but a sign that analysts see fewer immediate catalysts. Jefferies lowers price target on Netflix while maintaining Buy rating
• Negative Sentiment: Recent coverage also stresses that Netflix stock has been a disappointment and that Wall Street sees limited catalysts in the near term, which is likely contributing to the stock’s weakness. Netflix Stock Gets Price-Target Cut On Lack Of Catalysts
• Negative Sentiment: Paramount Skydance’s public accusations that Netflix tried to interfere in merger politics may create some headline risk, even though the impact on fundamentals is unclear. Paramount Skydance Clash Puts Netflix Competition And Regulatory Role In Focus

Analyst Upgrades and Downgrades

NFLX has been the topic of a number of research analyst reports. Barclays set a $110.00 target price on Netflix and gave the stock an “equal weight” rating in a research report on Friday, April 17th. Bank of America reiterated a “buy” rating and set a $125.00 target price on shares of Netflix in a research report on Monday, May 18th. Jefferies Financial Group cut their target price on Netflix from $128.00 to $110.00 and set a “buy” rating on the stock in a research report on Wednesday. JPMorgan Chase & Co. restated a “buy” rating on shares of Netflix in a research report on Wednesday, April 22nd. Finally, New Street Research boosted their price target on Netflix from $96.00 to $102.00 in a research report on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have given a Hold rating to the company. According to data from MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and an average price target of $114.39.

Netflix Price Performance

The company has a 50 day moving average price of $91.53 and a 200 day moving average price of $91.35. The firm has a market cap of $342.21 billion, a PE ratio of 26.25, a price-to-earnings-growth ratio of 1.03 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.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company’s quarterly revenue was up 16.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, sell-side analysts expect that Netflix, Inc. will post 3.6 EPS for the current year.

Insider Buying and Selling at Netflix

In other news, CFO Spencer Adam Neumann sold 9,253 shares of the company’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $88.95, for a total transaction of $823,054.35. Following the completion of the sale, the chief financial officer directly owned 73,787 shares in the company, valued at $6,563,353.65. This represents a 11.14% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Gregory K. Peters sold 27,312 shares of the company’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 owned 120,931 shares of the company’s stock, valued at approximately $10,725,370.39. The trade was a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 1,313,029 shares of company stock worth $120,315,776. 1.24% of the stock is currently owned by company insiders.

Institutional Trading of Netflix

Institutional investors have recently added to or reduced their stakes in the business. Imprint Wealth LLC purchased a new stake in Netflix during the 3rd quarter worth $25,000. Bare Financial Services Inc boosted its position in Netflix by 93.3% during the 3rd quarter. Bare Financial Services Inc now owns 29 shares of the Internet television network’s stock worth $35,000 after purchasing an additional 14 shares during the period. Horizon Financial Services LLC boosted its position in Netflix by 480.0% in the 3rd quarter. Horizon Financial Services LLC now owns 29 shares of the Internet television network’s stock valued at $35,000 after buying an additional 24 shares during the last quarter. Redmont Wealth Advisors LLC purchased a new position in Netflix in the 3rd quarter valued at about $36,000. Finally, Promus Capital LLC purchased a new position in Netflix in the 3rd quarter valued at about $48,000. 80.93% of the stock is owned by hedge funds and other 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.