Netflix (NASDAQ:NFLX) Stock Price Down 1.1% – What’s Next?

Netflix, Inc. (NASDAQ:NFLX)’s share price fell 1.1% during mid-day trading on Wednesday . The stock traded as low as $84.30 and last traded at $84.64. 36,980,440 shares changed hands during mid-day trading, a decline of 30% from the average session volume of 52,996,328 shares. The stock had previously closed at $85.58.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Institutional buying and conviction: Cathie Wood’s ARK has been adding Netflix, signaling confidence in the company’s subscription/ad growth thesis and reducing fear among momentum investors. Ark Invest Is Betting on Netflix Stock Amid Warner Bros. Deal Drama. Should You?
• Positive Sentiment: Fundamentals beat expectations: Q4 results topped revenue and EPS estimates, management gave bold 2026 guidance and cited margin/subscriber gains — supporting the view that growth and cash flow remain intact. This is a primary reason some analysts and retail bulls are buying the dip. 3 Reasons to Hold Netflix Stock Following Solid Q4 Earnings
• Positive Sentiment: High-profile endorsements and upgrades: Jim Cramer urged buyers, and boutique/broker upgrades (Freedom Capital’s strong-buy, Phillip Securities, Needham maintaining Buy) are propping sentiment and may attract short-term momentum flows. Jim Cramer Says “You Should Be a Buyer of Netflix Here” Freedom Capital Markets upgrades Netflix (NFLX)
• Neutral Sentiment: Technical/valuation narrative: Some commentators argue the stock has put in a low after the post‑earnings selloff and see attractive risk/reward, but this is contingent on price holding recent support and deal clarity. Netflix Just Set a Hard Low—Is This The Start of a 40% Rally?
• Negative Sentiment: Regulatory and political scrutiny of the Warner Bros. deal: The U.S. Senate antitrust subcommittee and U.K. politicians have signaled scrutiny; the DOJ and lawmakers raising concerns increase the odds of delay, additional conditions, or a blocked transaction — a major overhang on the stock. Senate subcommittee to hold hearing on proposed Netflix-Warner Bros deal Senate Antitrust Panel Chair Raises Concerns Over Netflix-Warner Deal
• Negative Sentiment: Analyst target cuts and fund exits: Citic Securities trimmed its price target to $95 and some active managers (e.g., Polen) have exited positions citing regulatory and leverage concerns — adding selling pressure and signaling caution among parts of the institutional base. Citic Securities Lowers Netflix Price Target to $95.00 Polen Focus Growth Strategy Exited Netflix Amid Rising Regulatory and Leverage Concerns

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on NFLX shares. Jefferies Financial Group reaffirmed a “buy” rating on shares of Netflix in a research note on Wednesday, January 21st. Oppenheimer set a $125.00 price target on Netflix and gave the stock an “outperform” rating in a research note on Wednesday, January 21st. JPMorgan Chase & Co. lowered their price objective on Netflix from $127.50 to $124.00 and set a “neutral” rating for the company in a research note on Tuesday, November 18th. Moffett Nathanson dropped their target price on Netflix from $140.00 to $115.00 and set a “buy” rating on the stock in a report on Wednesday, January 21st. Finally, Needham & Company LLC reduced their price target on Netflix from $150.00 to $120.00 and set a “buy” rating for the company in a report on Wednesday, January 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating and seventeen have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $116.17.

Netflix Stock Performance

The business’s fifty day moving average price is $95.14 and its 200-day moving average price is $110.71. The stock has a market cap of $357.36 billion, a PE ratio of 33.49, a P/E/G ratio of 1.52 and a beta of 1.71. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.33 and a current ratio of 1.19.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, beating analysts’ consensus estimates of $0.55 by $0.01. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The company had revenue of $12.05 billion for the quarter, compared to the consensus estimate of $11.97 billion. During the same quarter in the prior year, the firm earned $0.43 earnings per share. The firm’s revenue for the quarter was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, equities research analysts forecast that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insider Buying and Selling at Netflix

In related news, Director Reed Hastings sold 426,290 shares of Netflix stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $91.67, for a total transaction of $39,078,004.30. Following the transaction, the director directly owned 3,940 shares in the company, valued at approximately $361,179.80. The trade was a 99.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Gregory K. Peters sold 20,270 shares of the firm’s stock in a transaction dated Tuesday, November 4th. The stock was sold at an average price of $109.57, for a total value of $2,220,943.36. Following the completion of the transaction, the chief executive officer directly owned 127,810 shares in the company, valued at $14,003,886.08. This trade represents a 13.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 1,653,599 shares of company stock worth $173,141,263. 1.37% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Brighton Jones LLC boosted its stake in Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock worth $4,804,000 after purchasing an additional 257 shares during the period. Revolve Wealth Partners LLC raised its position in shares of Netflix by 16.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock valued at $912,000 after buying an additional 144 shares during the last quarter. MBA Advisors LLC purchased a new position in shares of Netflix in the second quarter worth $253,000. Sivia Capital Partners LLC boosted its position in shares of Netflix by 21.2% during the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock worth $1,883,000 after acquiring an additional 246 shares during the last quarter. Finally, Strategic Investment Advisors MI boosted its position in shares of Netflix by 18.9% during the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock worth $1,036,000 after acquiring an additional 123 shares during the last quarter. Institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

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.