Netflix (NASDAQ:NFLX) Trading Up 2.7% – Should You Buy?

Netflix, Inc. (NASDAQ:NFLX) shares rose 2.7% during mid-day trading on Tuesday . The stock traded as high as $78.12 and last traded at $78.04. Approximately 31,868,467 shares were traded during mid-day trading, a decline of 34% from the average daily volume of 48,054,715 shares. The stock had previously closed at $76.02.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix publicly declined to increase its bid for Warner Bros. Discovery, signaling it may walk away rather than overpay; the market is treating that as shareholder-friendly (less cash risk, fewer integration/regulatory headaches). Netflix declines to raise offer (Reuters)
• Positive Sentiment: Investors are placing bullish bets: unusually large call-option volume was reported, indicating speculative optimism or hedged positioning ahead of a likely retreat from the WBD deal. Huge volume in Netflix call options (MSN)
• Neutral Sentiment: Warner Bros. Discovery’s board has determined Paramount Skydance’s revised $31-per-share offer could qualify as a “Company Superior Proposal,” triggering a four-business-day window for Netflix to match or walk — an event that creates uncertainty but not an immediate outcome. WBD Board says Paramount proposal could be superior (WBD/Yahoo)
• Neutral Sentiment: Netflix made a programming/content move: it and Apple TV will collaborate on F1 content (streaming the Canadian Grand Prix live in the U.S. and making Drive to Survive S8 available on Apple TV) — a small positive for growth/engagement but not a near-term earnings catalyst relative to the M&A story. Netflix and Apple TV join on F1 content (Reuters)
• Negative Sentiment: Regulatory and political risk remains a material overhang: several state attorneys general have urged the DOJ to probe Netflix’s proposed Warner deal, meaning any revived bidding or consummation would likely face intense antitrust review and delay. 11 US states urge DOJ to probe Netflix-WBD deal (Reuters)

Analyst Upgrades and Downgrades

A number of research analysts have commented on NFLX shares. Erste Group Bank lowered Netflix from a “buy” rating to a “hold” rating in a research report on Friday, October 31st. UBS Group set a $104.00 price target on shares of Netflix in a report on Tuesday, January 27th. Citic Securities dropped their target price on shares of Netflix from $109.00 to $95.00 and set a “hold” rating on the stock in a report on Monday, January 26th. Rothschild & Co Redburn set a $120.00 price target on Netflix in a report on Wednesday, January 21st. Finally, Benchmark restated a “hold” rating on shares of Netflix in a report on Tuesday, January 13th. One analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and sixteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $116.08.

Netflix Stock Up 2.3%

The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.51. The firm has a market cap of $357.11 billion, a price-to-earnings ratio of 33.47, a PEG ratio of 1.47 and a beta of 1.71. The firm’s 50 day simple moving average is $85.79 and its two-hundred day simple moving average is $104.58.

Netflix (NASDAQ:NFLX) last announced its earnings results on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, topping the consensus estimate of $0.55 by $0.01. The company had revenue of $12.05 billion for the quarter, compared to analysts’ expectations of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The business’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same period last year, the firm earned $0.43 earnings per share. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, equities analysts forecast that Netflix, Inc. will post 24.58 EPS for the current year.

Insider Activity

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the firm’s stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $83.24, for a total value of $2,273,450.88. Following the transaction, the chief executive officer directly owned 122,140 shares of the company’s stock, valued at $10,166,933.60. This trade represents a 18.27% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Spencer Adam Neumann sold 9,248 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $81.27, for a total transaction of $751,584.96. Following the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $5,996,669.49. This trade represents a 11.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 1,399,163 shares of company stock valued at $129,899,103. Company insiders own 1.37% of the company’s stock.

Institutional Trading of Netflix

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its stake in shares of Netflix by 912.5% in the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after purchasing an additional 351,493,659 shares during the last quarter. State Street Corp raised its stake in shares of Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after purchasing an additional 159,578,053 shares during the period. Geode Capital Management LLC boosted its stake 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 lifted its stake 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 purchasing an additional 80,025,890 shares during the last quarter. Finally, Morgan Stanley lifted its position in shares of Netflix by 903.0% during the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock valued at $8,002,414,000 after buying an additional 76,840,318 shares during the last quarter. 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.