Netflix (NASDAQ:NFLX) Stock Price Down 1.1% – Should You Sell?

Netflix, Inc. (NASDAQ:NFLX) was down 1.1% on Thursday . The company traded as low as $85.59 and last traded at $86.36. Approximately 38,245,528 shares changed hands during trading, a decline of 15% from the average daily volume of 44,910,355 shares. The stock had previously closed at $87.35.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Analysts and market-watchers are highlighting Netflix’s expanding ad business, with 2026 ad revenue estimates around $3 billion and new formats, live events, and ad-tech tools seen as adding upside. Article Title
• Positive Sentiment: Several bullish reports argue Netflix is undervalued after its pullback, pointing to the ad tier, improving free cash flow, and potential for a major rebound if growth trends continue. Article Title
• Positive Sentiment: Another bullish note upgraded Netflix to strong buy, saying the ad empire story is too compelling to ignore and could materially lift average revenue per user and engagement. Article Title
• Positive Sentiment: Netflix is also being viewed as a potential AI beneficiary after Ben Affleck said the AI company he sold to Netflix for $600 million could lead to “more human work,” adding to optimism around efficiency gains and cost savings. Article Title
• Neutral Sentiment: Netflix continues to attract attention from high-profile content deals, including a reported $100 million arrangement tied to Jay Shetty’s “On Purpose,” reinforcing its content spending strategy. Article Title
• Negative Sentiment: Some coverage remains cautious, with one article arguing Netflix is still in a bear market and another noting recent stock weakness versus the broader market, which may temper enthusiasm despite the bullish long-term case. Article Title

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on NFLX shares. Pivotal Research set a $96.00 price objective on shares of Netflix and gave the company a “hold” rating in a research note on Friday, April 17th. Weiss Ratings upgraded shares of Netflix from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday, May 4th. Citizens Jmp restated a “market perform” rating on shares of Netflix in a research note on Wednesday, April 15th. Wedbush reiterated an “outperform” rating and issued a $118.00 price target on shares of Netflix in a research report on Thursday, April 16th. Finally, Piper Sandler reiterated an “overweight” rating and issued a $115.00 price target (up from $103.00) on shares of Netflix in a research report on Friday, April 17th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have given a Hold rating to the company. According to MarketBeat.com, Netflix has a consensus rating of “Moderate Buy” and a consensus target price of $114.82.

Netflix Trading Down 1.1%

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 50-day simple moving average is $93.45 and its 200 day simple moving average is $93.59. The stock has a market capitalization of $363.64 billion, a P/E ratio of 27.89, a PEG ratio of 1.11 and a beta of 1.55.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping the consensus estimate of $0.76 by $0.47. The firm had revenue of $12.25 billion for 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%. Netflix’s revenue for the quarter was up 16.2% compared to the same quarter last year. During the same period in the previous year, the business earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Equities research analysts anticipate that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Insider Transactions at Netflix

In related news, insider David A. Hyman sold 5,722 shares of Netflix stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total value of $503,993.76. Following the transaction, the insider owned 316,100 shares of the company’s stock, valued at approximately $27,842,088. This trade represents a 1.78% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total value of $2,402,636.64. Following the completion of the transaction, the chief executive officer directly owned 284,804 shares in the company, valued at $25,054,207.88. This represents a 8.75% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 1,422,769 shares of company stock worth $135,144,073 in the last three months. Insiders own 1.24% of the company’s stock.

Hedge Funds Weigh In On Netflix

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in Netflix by 0.4% in the 3rd quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network’s stock worth $46,183,983,000 after purchasing an additional 142,238 shares during the period. Checchi Capital Advisers LLC raised its holdings in Netflix by 875.7% in the 4th quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock worth $2,920,000 after purchasing an additional 27,951 shares during the period. Contravisory Investment Management Inc. raised its holdings in Netflix by 837.2% in the 4th quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network’s stock worth $10,443,000 after purchasing an additional 99,496 shares during the period. BNC Wealth Management LLC raised its holdings in Netflix by 991.3% in the 4th quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network’s stock worth $3,866,000 after purchasing an additional 37,451 shares during the period. Finally, Crew Capital Management Ltd raised its holdings in Netflix by 1,021.9% during the fourth quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network’s stock valued at $847,000 after acquiring an additional 8,226 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.