Key Points
Netflix, Inc. (NFLX) opened the session under pressure and extended losses into the close, finishing at $103.62 versus a previous close of $109.35. The stock fell down 5.24% on the day, declining $5.73. That slide pushed shares further below recent trend support levels as traders digested company-specific headlines and reset expectations around growth and margins heading into the next few quarters.
Trading volume skewed below-average, underscoring a move driven more by repricing than by capitulation. From a technical standpoint, NFLX now sits roughly 23% below its 52-week high of $134.12 set on 06/30/2025. The $105–$106 zone that had acted as an interim pivot gave way intraday, leaving the next area of potential psychological interest near the round-number $100 handle. Resistance likely begins to build back toward the broken $105 level, with additional supply near $110 if rebounds materialize.
In recent sessions, Netflix stock has shown a tendency to react quickly to guidance updates and margin commentary, producing wider-than-normal daily ranges but without sustained follow-through volume. Within Communication Services, mega-cap digital platforms continue to influence sentiment, and investors have been weighing premium valuations against execution and cash flow durability. For Media and Entertainment names specifically, markets remain sensitive to shifts in content investment, advertising trends, and subscriber momentum, all of which can sharpen moves around earnings and outlook resets.
Why Netflix, Inc. Price is Moving
At $103.62, Netflix holds a market capitalization of $463.35 billion. Trailing 12-month EPS stands at $2.39, and shares sit well below the 52-week high of $134.12. Trading today unfolded on below-average volume, signaling a recalibration of expectations more than panic-driven selling. Against that backdrop, the valuation remains in focus, with investors reassessing forward growth and profitability assumptions after the latest corporate update.
The immediate driver of today’s 5.2% drop was guidance. In its most recent Q4 2025 report, Netflix delivered headline beats — EPS of $4.27 versus $4.18 expected and revenue of $10.25 billion versus $10.11 billion, but lowered its outlook. Management guided Q4 2025 EPS to $5.45 and revenue to $12 billion, and cut the full-year 2025 revenue outlook to $43.5 billion–$44.5 billion. The company also flagged slower subscriber growth ahead and a moderation in operating margin expansion tied to increased content spending and investments in its ad-supported plan. Notably, Netflix added 18.91 million subscribers in Q4, well above the 9.18 million expectation, yet the market focused on the more cautious path forward. There were no major regulatory or legal developments and no analyst rating changes reported today.
Analysts highlighted the tension between solid profitability and tempered guidance. With a premium multiple still embedded, the combination of slower-than-expected expansion and heavier investment can compress near-term valuation. Sector-wide, investors have rewarded durable growth and operating leverage; messaging around margin trajectory and subscriber quality is therefore central to the share reaction. In this context, today’s drawdown appears to reflect a reset toward more moderate growth assumptions rather than a reversal of the company’s long-term strategic positioning.
What is the Netflix, Inc. Rating - Should I Sell or Buy?
Weiss Ratings assigns NFLX a B rating. Current recommendation is Buy.
The rating is built on five indices: the Excellent Growth Index (reflecting strong revenue and earnings expansion, supported by 17.16% revenue growth), the Excellent Efficiency Index (showcasing robust profitability and capital discipline, supported by a 24.04% profit margin and 42.86% ROE), and the Excellent Solvency Index (indicating solid financial health and prudent debt management). Balancing these strengths, the Fair Total Return Index points to only average risk-adjusted performance relative to peers and benchmarks, with price appreciation and dividends combining to a middle-of-the-pack outcome. The Good Volatility Index signals comparatively well-managed price swings, though premium valuation, as reflected in a 45.68 P/E ratio, can magnify reactions to guidance.
Relative to sector peers, GOOG (B), GOOGL (B), and META (B) also carry B ratings within Communication Services. That cluster underscores a competitive cohort where strong balance sheets, scale advantages, and monetization engines are common, leaving differentiation to execution, margin durability, and user growth quality.
Overall, the B rating reflects a favorable risk/reward profile with notable strengths in growth, efficiency, and solvency. While today’s decline highlights sensitivity to forward guidance and valuation, the index mix indicates that operational momentum and financial resilience outweigh near-term return variability. For investors, the B (Buy) underscores quality fundamentals balanced by realistic expectations for performance versus risk.
About Netflix, Inc.
Netflix, Inc. operates a global streaming entertainment platform within the Media and Entertainment industry, part of the Communication Services sector. Founded in 1997 and headquartered in Los Gatos, California, the company has evolved from a DVD-by-mail service into one of the world’s largest subscription video-on-demand providers. Its platform distributes a broad catalog of licensed and original content spanning series, films, documentaries, stand-up specials, and international programming.
Netflix’s core service offers subscription plans that provide on-demand streaming across connected devices, including smart TVs, mobile phones, tablets, game consoles, and streaming media players. Plans include ad-free and ad-supported tiers designed to meet different price points and viewing preferences. The company invests heavily in proprietary content production under the Netflix Originals banner, cultivating franchises and award-winning titles across genres and languages. Netflix also operates Open Connect, its content delivery network engineered to optimize streaming performance for internet service providers and end users globally.
The company maintains a broad international footprint, localizing content and interfaces to reach audiences in diverse markets. Competitive advantages include brand recognition, data-driven content programming, a large and engaged subscriber base, and a technology stack that supports personalized discovery and high-quality playback at scale. Strategic focus areas include expanding the content slate across regions and formats, improving ad-supported capabilities, and enhancing user engagement, including interactive formats and a growing portfolio of gaming initiatives integrated into the subscription. These elements support Netflix’s position as a leading streaming platform in the global entertainment landscape.
Investor Outlook
With a B (Buy) Weiss Rating, investors should watch whether NFLX stabilizes above the $100 area and how forthcoming updates address margin trajectory, content spending, and ad-tier monetization. Sector peers carry similar ratings, making execution and return consistency key differentiators. See full rankings of all B-rated Communication Services stocks inside the Weiss Stock Screener.