Netflix (NASDAQ:NFLX) Shares Down 1.3% – What’s Next?

Netflix, Inc. (NASDAQ:NFLX)’s stock price dropped 1.3% during mid-day trading on Thursday . The stock traded as low as $76.59 and last traded at $77.00. Approximately 29,986,296 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 49,313,691 shares. The stock had previously closed at $77.99.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Analysts and investors with large positions are defending Netflix’s outlook — Sanford C. Bernstein reiterated a “buy” rating and investor Gary Black argues Netflix has the strategic edge and sees upside even if the WBD outcome is uncertain, supporting a potential rebound. Bernstein Buy Rating Gary Black Bullish
• Positive Sentiment: Management is publicly confident the deal will close and that the acquisition would accelerate growth — messaging that can reassure investors about strategic rationale and integration upside. Sarandos Says Warner Bros. Purchase Will Accelerate Netflix Growth
• Neutral Sentiment: Reuters reports Netflix has ample cash and room to increase its offer if Paramount Skydance (PSKY) bumps its bid — this confirms financial flexibility but also signals a possible higher purchase price if the auction continues. Reuters: Netflix Has Ample Room
• Neutral Sentiment: Netflix granted WBD a short waiver to let Paramount present a “best and final” offer — a procedural move that could bring clarity quickly but also raises the chance of a bidding war or higher final price. MarketBeat: WBD Seeks PSKY Best-and-Final
• Negative Sentiment: High-profile criticism is surfacing: director James Cameron sent a scathing letter to an antitrust lawmaker opposing the Netflix–WBD deal, highlighting increased regulatory and political risk that could complicate approval. Cameron Antitrust Letter
• Negative Sentiment: Market anxiety over the bidding war and broader competitive threats (YouTube/short-form, IP/AI issues) is weighing on the stock; coverage notes Netflix at a 52-week low and recent share weakness tied to deal uncertainty. YouTube Threat Drives Netflix to 52-week Low Benzinga: Stock Slides

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. UBS Group set a $104.00 target price on shares of Netflix in a research note on Tuesday, January 27th. Piper Sandler restated a “positive” rating and issued a $103.00 price objective (down from $140.00) on shares of Netflix in a report on Wednesday, January 21st. Cfra lowered shares of Netflix from a “strong-buy” rating to a “hold” rating and set a $100.00 target price for the company. in a research note on Monday, January 5th. Guggenheim lowered their price objective on shares of Netflix from $145.00 to $130.00 and set a “buy” rating for the company in a research report on Wednesday, January 21st. Finally, Oppenheimer set a $125.00 target price on Netflix and gave the company an “outperform” rating in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating and sixteen have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $116.08.

Netflix Trading Down 1.3%

The stock has a market cap of $325.11 billion, a price-to-earnings ratio of 30.47, a P/E/G ratio of 1.37 and a beta of 1.71. The business’s 50 day moving average is $87.58 and its 200 day moving average is $106.16. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.19 and a quick ratio of 1.19.

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

Insider Activity at Netflix

In other news, Director Bradford L. Smith sold 31,790 shares of Netflix stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $88.86, for a total transaction of $2,824,859.40. Following the sale, the director owned 79,690 shares in the company, valued at approximately $7,081,253.40. The trade was a 28.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Reed Hastings sold 426,290 shares of the stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $91.67, for a total value of $39,078,004.30. Following the completion of the sale, the director directly owned 3,940 shares of the company’s stock, valued at $361,179.80. The trade was a 99.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 1,399,163 shares of company stock valued at $129,899,103. Corporate insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Netflix

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in Netflix by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network’s stock valued at $46,183,983,000 after acquiring an additional 142,238 shares during the period. CIBC Capital Markets Europe S.A. grew its position in shares of Netflix by 171.4% during the 3rd quarter. CIBC Capital Markets Europe S.A. now owns 66,503 shares of the Internet television network’s stock worth $79,732,000 after buying an additional 42,000 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. increased its position in Netflix by 6.6% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 302,182 shares of the Internet television network’s stock valued at $362,292,000 after purchasing an additional 18,837 shares during the period. NEOS Investment Management LLC boosted its stake in shares of Netflix by 64.6% during the third quarter. NEOS Investment Management LLC now owns 177,297 shares of the Internet television network’s stock valued at $212,565,000 after purchasing an additional 69,570 shares in the last quarter. Finally, Caprock Group LLC purchased a new stake in Netflix during the third quarter worth $30,573,000. Institutional investors and hedge funds 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.