Netflix (NASDAQ:NFLX) Hits New 52-Week Low – Here’s What Happened

Netflix, Inc. (NASDAQ:NFLX) shares reached a new 52-week low during trading on Monday . The stock traded as low as $74.32 and last traded at $74.2890, with a volume of 18849830 shares changing hands. The stock had previously closed at $77.38.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Neutral Sentiment: Netflix is getting attention for new growth initiatives, including its first original horror video game, Unhinged, and continued expansion in interactive entertainment, which could help diversify the business beyond streaming. Netflix Unveils New Horror Game to Jumpstart Interactive Offerings
• Neutral Sentiment: The company also announced an AI-powered ad partnership with Omnicom, highlighting continued progress in its advertising business and efforts to improve monetization on the ad-supported tier. Omnicom Launches Fan Graph And Teams Up With Netflix On AI Ads
• Neutral Sentiment: Some commentary argues the selloff may be overdone, with analysts and strategists pointing to valuation support after the stock’s sharp drop and noting that Netflix still has upside potential if growth re-accelerates. ‘This Is Overdone,’ Says Top Investor About Netflix Stock
• Neutral Sentiment: However, multiple reports say Netflix’s share of streaming time is slipping, suggesting the company is losing some viewer attention to rivals and weakening the market’s confidence in its near-term growth story. Netflix’s Share of People’s Streaming Time Declines, Further Pressuring the Stock
• Negative Sentiment: Investor concern has also been tied to Reed Hastings stepping away from the board and broader worries that Netflix may need a new catalyst after the Warner Bros. acquisition collapse, which has intensified doubts about the company’s next phase of expansion. Netflix Is Down 32% Since Reed Hastings Said He Was Leaving. Should You Buy the Dip or Is It a Red Flag?

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Pivotal Research set a $96.00 target price on Netflix and gave the company a “hold” rating in a research note on Friday, April 17th. President Capital boosted their price objective on shares of Netflix from $133.00 to $134.00 and gave the company a “buy” rating in a research note on Tuesday, March 31st. Arete Research upgraded shares of Netflix from a “neutral” rating to a “buy” rating in a research report on Friday, February 27th. Evercore initiated coverage on shares of Netflix in a research note on Friday, February 27th. They issued an “outperform” rating and a $115.00 target price for the company. Finally, DZ Bank reissued a “buy” rating on shares of Netflix in a report on Friday, April 17th. Two analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, sixteen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $114.26.

Netflix Stock Up 0.8%

The company has a market cap of $308.94 billion, a PE ratio of 23.66, a P/E/G ratio of 0.93 and a beta of 1.50. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43. The firm’s fifty day simple moving average is $87.70 and its 200-day simple moving average is $89.53.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.76 by $0.47. The business had revenue of $12.25 billion during the quarter, compared to analysts’ expectations of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The company’s revenue was up 16.2% on a year-over-year basis. During the same period last year, the company posted $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, equities research analysts expect that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insider Buying and Selling at Netflix

In other Netflix news, CEO Theodore A. Sarandos sold 27,312 shares of the stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the transaction, the chief executive officer owned 284,804 shares of the company’s stock, valued at $25,054,207.88. This trade represents a 8.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Bradford L. Smith sold 35,990 shares of the business’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the sale, the director directly owned 79,690 shares of the company’s stock, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 1,349,019 shares of company stock valued at $123,105,721. 1.24% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Netflix

Several hedge funds and other institutional investors have recently modified their holdings of the company. Imprint Wealth LLC acquired a new position in shares of Netflix during the third quarter worth about $25,000. Bare Financial Services Inc raised its holdings in shares of Netflix by 93.3% during the 3rd quarter. Bare Financial Services Inc now owns 29 shares of the Internet television network’s stock valued at $35,000 after buying an additional 14 shares during the period. Horizon Financial Services LLC raised its holdings in shares of Netflix by 480.0% during 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 period. Promus Capital LLC acquired a new position in Netflix during the 3rd quarter worth approximately $48,000. Finally, Aviso Financial Inc. boosted its holdings in Netflix by 40.0% in the 3rd quarter. Aviso Financial Inc. now owns 42 shares of the Internet television network’s stock worth $50,000 after acquiring an additional 12 shares during the period. 80.93% of the stock is owned by institutional investors and hedge funds.

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.