Netflix (NASDAQ:NFLX) Hits New 1-Year Low – Here’s Why

Netflix, Inc. (NASDAQ:NFLX)’s stock price reached a new 52-week low during trading on Tuesday. The stock traded as low as $62.79 and last traded at $62.8380, with a volume of 15,221,444 shares changing hands. The stock had previously closed at $63.90.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix exceeded quarterly earnings expectations, reporting $0.87 in EPS versus an $0.82 consensus estimate. Revenue reached $12.87 billion, up 11.9% year over year, while profitability and margins remained strong. Netflix Just Posted a Record Margin. So Why Is Wall Street Panicking?
• Positive Sentiment: Record margins, continued international revenue growth, and substantial share repurchases could support earnings per share and provide a potential floor for the stock. Netflix: The Ad Miss Is Offset By Record Buybacks
• Neutral Sentiment: Investors are weighing whether Netflix’s widening margins and international expansion can offset slower growth in its mature U.S. market. Management acknowledged that U.S. engagement can improve, leaving future viewing trends as a key issue to monitor. Netflix Co-CEO Greg Peters Just Said We Know That
• Negative Sentiment: Reports that viewers are watching less have raised concerns about market-share losses, weaker engagement, and increased competition from short-form video and artificial-intelligence-driven content. These worries are outweighing the earnings beat. Netflix Stock Falls on Report That Viewers Watch Less
• Negative Sentiment: Fourth-quarter revenue guidance reportedly came in below Wall Street expectations, while Netflix reduced its 2026 advertising-revenue outlook. The guidance has increased skepticism that growth can justify the company’s valuation. Chamath: Netflix Is a Dormant Subscription
• Negative Sentiment: Needham downgraded Netflix to Hold from Buy, and Wolfe Research cut its rating to Peer Perform from Outperform, adding near-term pressure to the shares. Reports of layoffs and executive departures also contribute to concerns about corporate stability and growth execution. Needham Downgrades Netflix to Hold From Buy

Analyst Upgrades and Downgrades

Several research firms have commented on NFLX. Jefferies Financial Group set a $85.00 price target on shares of Netflix and gave the company a “buy” rating in a report on Thursday, October 15th. UBS Group set a $90.00 target price on Netflix in a report on Wednesday, October 21st. Pivotal Research restated a “hold” rating and issued a $65.00 price target (down from $70.00) on shares of Netflix in a research report on Wednesday, October 21st. China Renaissance cut their price objective on Netflix from $100.00 to $80.00 and set a “hold” rating for the company in a research report on Friday, July 17th. Finally, Oppenheimer reaffirmed an “outperform” rating and issued a $80.00 target price (down from $85.00) on shares of Netflix in a research report on Wednesday, October 21st. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Netflix currently has a consensus rating of “Moderate Buy” and an average target price of $89.59.

Netflix Stock Performance

The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.43. The firm has a market cap of $257.01 billion, a PE ratio of 18.09, a P/E/G ratio of 0.96 and a beta of 1.62. The stock’s 50 day moving average price is $74.27 and its 200 day moving average price is $82.27.

Netflix (NASDAQ:NFLX) last posted its earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.82 by $0.05. The firm had revenue of $12.87 billion during the quarter, compared to analyst estimates of $12.87 billion. Netflix had a net margin of 29.69% and a return on equity of 42.69%. Netflix’s revenue was up 11.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.59 EPS. As a group, equities analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Transactions at Netflix

In related news, CEO Gregory K. Peters sold 27,312 shares of the business’s stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the sale, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Spencer Neumann sold 9,248 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at $5,592,316.73. The trade was a 11.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 179,045 shares of company stock worth $13,132,194. 1.24% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of NFLX. Clal Insurance Enterprises Holdings Ltd bought a new stake in Netflix during the second quarter worth about $26,000. Sawyer & Company Inc bought a new stake in Netflix in the third quarter valued at approximately $27,000. Compound Global Advisors LLC bought a new position in shares of Netflix during the 2nd quarter worth approximately $29,000. Burnham & Co LLC acquired a new stake in Netflix during the 2nd quarter valued at $29,000. Finally, Bayban lifted its holdings in Netflix by 400.0% during the 1st quarter. Bayban now owns 350 shares of the Internet television network’s stock valued at $34,000 after purchasing an additional 280 shares during the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

About Netflix

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.