Netflix (NASDAQ:NFLX) Reaches New 12-Month Low – What’s Next?

Netflix, Inc. (NASDAQ:NFLX)’s share price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $75.01 and last traded at $75.5530, with a volume of 7658286 shares traded. The stock had previously closed at $78.67.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Paramount raised its bid for Warner Bros. to $31 per share and WBD said that revised offer “could reasonably be expected to lead to a company superior proposal,” increasing the market’s view that Netflix may not have to spend heavily to win the assets — investors are pricing a higher probability Netflix walks away, which boosts NFLX. Paramount Raises Its Bid for Warner Bros. Discovery
• Positive Sentiment: Options flow showed heavy bullish positioning (about 916,307 call options traded), indicating traders are betting on further upside or volatility in NFLX into the near term. (Market options data)
• Positive Sentiment: Institutional buying — Coatue/Philippe Laffont materially increased their stake in recent filings — provides a vote of confidence from an active tech/media investor, which can support the stock. Billionaire Philippe Laffont Is Buying Up Netflix Stock. Should You?
• Neutral Sentiment: Netflix co‑CEO Ted Sarandos is set to meet at the White House to discuss the bid, underscoring the political and regulatory attention on any WBD deal — this could clarify regulatory pathways but also draws scrutiny. Netflix CEO Sarandos to visit White House to discuss Warner Bros bid, Politico reports
• Neutral Sentiment: Corporate calendar: Netflix’s CFO will speak at the Morgan Stanley TMT conference next week — a chance for management to reiterate strategy, liquidity position and M&A stance, which could move the stock on any new color. Netflix CFO to Participate in a Q&A session at the Morgan Stanley Technology, Media & Telecom Conference
• Negative Sentiment: Regulatory risk intensified as 11 state attorneys general urged the DOJ to thoroughly probe the Netflix‑WBD deal — increased antitrust scrutiny raises the chance regulators block or condition any transaction, which remains a material overhang. 11 US States urge DOJ to thoroughly probe Netflix-Warner Bros. deal
• Negative Sentiment: Political pressure (high-profile comments about board members) and GOP criticism of Netflix’s market power add a reputational and regulatory complication that could influence review timelines or public sentiment. Trump pressures Netflix over Susan Rice as Warner deal faces regulatory scrutiny

Wall Street Analysts Forecast Growth

NFLX has been the subject of several recent research reports. HSBC dropped their price target on Netflix from $107.00 to $106.00 and set a “buy” rating for the company in a research report on Wednesday, January 21st. JPMorgan Chase & Co. dropped their price objective on Netflix from $127.50 to $124.00 and set a “neutral” rating for the company in a research report on Tuesday, November 18th. Huber Research downgraded shares of Netflix to a “buy” rating in a research note on Friday, December 5th. William Blair restated an “outperform” rating on shares of Netflix in a report on Wednesday, January 21st. Finally, Needham & Company LLC lowered their price target on shares of Netflix from $150.00 to $120.00 and set a “buy” rating for the company in a report on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating and sixteen have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $116.08.

Netflix Stock Up 6.0%

The company has a debt-to-equity ratio of 0.51, a current ratio of 1.19 and a quick ratio of 1.19. The firm’s 50-day moving average is $86.22 and its 200 day moving average is $105.08. The stock has a market cap of $349.23 billion, a price-to-earnings ratio of 32.73, a price-to-earnings-growth ratio of 1.35 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings results 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. The company had revenue of $12.05 billion for the quarter, compared to analyst estimates of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. Netflix’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter last year, the business earned $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Sell-side analysts anticipate that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Activity

In other Netflix news, insider David A. Hyman sold 5,727 shares of the company’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $81.06, for a total transaction of $464,230.62. Following the completion of the sale, the insider directly owned 316,100 shares in the company, valued at $25,623,066. This represents a 1.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Spencer Adam Neumann sold 9,248 shares of Netflix stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $81.27, for a total value of $751,584.96. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at $5,996,669.49. This represents a 11.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,399,163 shares of company stock valued at $129,899,103 in the last 90 days. 1.37% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Netflix

Several hedge funds have recently modified their holdings of NFLX. Sit Investment Associates Inc. boosted its stake in shares of Netflix by 851.3% in the fourth quarter. Sit Investment Associates Inc. now owns 121,490 shares of the Internet television network’s stock valued at $11,391,000 after purchasing an additional 108,719 shares during the period. Tempo Wealth LLC acquired a new position in Netflix in the 4th quarter worth $337,000. Thryve Wealth Management LLC purchased a new position in Netflix in the 4th quarter valued at about $831,000. MidFirst Bank acquired a new stake in shares of Netflix during the fourth quarter valued at about $1,139,000. Finally, Alternative Investment Advisors LLC. grew its stake in shares of Netflix by 882.0% during the fourth quarter. Alternative Investment Advisors LLC. now owns 3,270 shares of the Internet television network’s stock valued at $307,000 after acquiring an additional 2,937 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 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.