Netflix (NASDAQ:NFLX) Shares Down 9.7% Following Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) fell 9.7% during trading on Friday after Barclays lowered their price target on the stock from $115.00 to $110.00. Barclays currently has an equal weight rating on the stock. Netflix traded as low as $95.10 and last traded at $97.31. 125,329,120 shares changed hands during mid-day trading, an increase of 158% from the average session volume of 48,655,973 shares. The stock had previously closed at $107.79.

NFLX has been the subject of several other reports. President Capital increased their price objective on Netflix from $133.00 to $134.00 and gave the stock a “buy” rating in a research note on Tuesday, March 31st. BMO Capital Markets dropped their price objective on Netflix from $143.00 to $135.00 and set an “outperform” rating for the company in a research note on Wednesday, January 21st. Oppenheimer set a $120.00 price objective on Netflix and gave the stock an “outperform” rating in a research note on Friday. Loop Capital set a $104.00 price objective on Netflix in a research note on Tuesday, January 27th. Finally, Phillip Securities upgraded Netflix from a “sell” rating to a “moderate buy” rating and increased their price objective for the stock from $95.00 to $100.00 in a research note on Monday, January 26th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and fourteen have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $114.58.

Insider Activity at Netflix

In other news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $83.24, for a total transaction of $2,273,450.88. Following the sale, the chief executive officer owned 122,140 shares in the company, valued at approximately $10,166,933.60. This represents a 18.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider David A. Hyman sold 5,727 shares of the stock in a transaction on Monday, February 9th. The stock was sold at an average price of $81.06, for a total value of $464,230.62. Following the sale, the insider owned 316,100 shares in the company, valued at $25,623,066. The trade was a 1.78% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,487,794 shares of company stock valued at $136,255,772. 1.37% of the stock is currently owned by company insiders.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q1 results beat expectations — revenue of $12.25B and GAAP EPS of $1.23 topped consensus, driven by subscription pricing, ad revenue growth and margin expansion; these fundamentals underpin many analyst “buy the dip” calls. Q1 results detail
• Positive Sentiment: Longer‑term growth levers remain: management emphasized live sports discussions (NFL interest) and continued ad‑tier expansion; analysts who stayed bullish point to strong cash generation and ad upside. Live sports / NFL rights
• Neutral Sentiment: Product/tech roadmap: Netflix plans a TikTok‑style vertical feed and broader AI use for recommendations — positive for engagement but not an immediate revenue catalyst. TechCrunch: vertical feed
• Negative Sentiment: Q2 guidance disappointed — the company issued Q2 EPS/revenue guidance below consensus (management cited slower near‑term growth and margin pressure), which shifted focus from the quarter to the outlook and trimmed near‑term expectations. Reuters: downbeat Q2 forecast
• Negative Sentiment: Leadership change spooked the market — Reed Hastings announced he will not stand for re‑election to the board, prompting concern about governance continuity amid a strategic pivot after the failed Warner Bros. bid. That exit amplified the selloff. Deadline: Hastings exit
• Negative Sentiment: Analyst reaction and price‑target moves were mixed-to-negative — several firms trimmed targets or moved to neutral/hold citing valuation and near‑term growth deceleration, increasing downward pressure. Invezz: analyst reactions

Hedge Funds Weigh In On Netflix

Several hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after acquiring an additional 351,493,659 shares during the last quarter. State Street Corp boosted its holdings in Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after acquiring an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after acquiring an additional 89,558,684 shares during the last quarter. Capital World Investors boosted its holdings in Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its holdings in Netflix by 685.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network’s stock valued at $8,068,882,000 after acquiring an additional 75,107,069 shares during the last quarter. Institutional investors own 80.93% of the company’s stock.

Netflix Stock Performance

The firm has a fifty day moving average of $92.20 and a 200-day moving average of $98.55. The firm has a market cap of $410.86 billion, a P/E ratio of 31.43, a PEG ratio of 1.60 and a beta of 1.67. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion for the quarter, compared to analysts’ expectations of $12.17 billion. Netflix had a return on equity of 43.01% and a net margin of 28.52%.The firm’s quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter last year, the business earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Research analysts predict that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

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.