Netflix (NASDAQ:NFLX) Stock Price Up 2.7% – Should You Buy?

Netflix, Inc. (NASDAQ:NFLX) shares rose 2.7% on Thursday. The company traded as high as $71.62 and last traded at $71.57. Approximately 45,707,793 shares traded hands during trading, an increase of 8% from the average daily volume of 42,505,129 shares. The stock had previously closed at $69.70.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Morgan Stanley maintained an “overweight” rating while trimming its price target from $83 to $80, implying meaningful upside from recent trading levels. The lower target reflects caution, but the continued bullish rating provides some support for the investment case. Morgan Stanley Netflix price target report
• Positive Sentiment: Netflix is reportedly paying $200 million for U.S. rights to the 2027 Women’s World Cup. The event could provide valuable live-programming exposure and attract new viewers, although the rights fee adds to near-term content spending. Netflix 2027 Women’s World Cup rights report
• Neutral Sentiment: Netflix’s upcoming scripted series about the FTX collapse, “The Altruists,” is scheduled for November 19. The program could generate attention and engagement, but criticism from figures connected to the crypto industry creates some reputational risk. Netflix FTX series criticism report
• Negative Sentiment: Multiple reports say Netflix plans to eliminate about 5% of its workforce—potentially roughly 800 jobs—with an announcement possibly coming next week. While the cuts could reduce operating expenses and improve margins, investors may interpret them as evidence that management is responding to weaker engagement, intensifying competition from YouTube and pressure on growth. Netflix has not confirmed the plans. Los Angeles Times Netflix layoffs report
• Negative Sentiment: A reported $2.8 billion termination fee boosted Netflix’s cash balance, but it is a one-time payment rather than recurring streaming cash flow. Investors are being cautioned not to treat the windfall as evidence of stronger underlying earnings or content-financing capacity. Netflix termination fee and cash flow report

Wall Street Analyst Weigh In

NFLX has been the topic of a number of research reports. Wedbush decreased their target price on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research note on Friday, July 17th. Robert W. Baird set a $90.00 price target on Netflix and gave the company an “outperform” rating in a research report on Wednesday, July 22nd. Loop Capital cut their price target on Netflix from $115.00 to $95.00 and set a “buy” rating for the company in a report on Friday, July 24th. Evercore reiterated an “outperform” rating and set a $110.00 price objective (up from $100.00) on shares of Netflix in a research report on Monday, September 14th. Finally, CLSA initiated coverage on Netflix in a research note on Monday, July 20th. They set an “outperform” rating on the stock. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $94.70.

Netflix Stock Down 1.8%

The stock has a market capitalization of $292.72 billion, a price-to-earnings ratio of 22.13, a P/E/G ratio of 1.01 and a beta of 1.62. The business has a 50-day moving average of $75.46 and a 200-day moving average of $81.42. 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) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share 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 net margin of 28.22% and a return on equity of 40.02%. Netflix’s revenue was up 13.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.72 earnings per share. On average, sell-side analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

Insider Activity at Netflix

In other news, CFO Spencer Neumann sold 9,248 shares of Netflix stock in a transaction on Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $73.54, for a total value of $2,008,524.48. Following the transaction, the chief executive officer directly owned 120,931 shares in the company, valued at approximately $8,893,265.74. The trade was a 18.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 179,045 shares of company stock valued at $13,132,194 over the last ninety days. 1.24% of the stock is owned by insiders.

Institutional Trading of Netflix

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in Netflix during the 2nd quarter worth approximately $24,902,221,000. State Street Corp grew its stake in shares of Netflix by 4.9% in the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network’s stock worth $12,861,252,000 after acquiring an additional 8,474,820 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Netflix by 4.3% in the first 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 acquiring an additional 2,376,349 shares in the last quarter. Invesco Ltd. increased its position in shares of Netflix by 835.9% during the fourth quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network’s stock worth $4,075,062,000 after acquiring an additional 38,818,947 shares during the period. Finally, Nuveen LLC raised its stake in shares of Netflix by 830.1% in the fourth quarter. Nuveen LLC now owns 20,579,000 shares of the Internet television network’s stock valued at $1,929,487,000 after acquiring an additional 18,366,524 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

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.