Netflix (NASDAQ:NFLX) Stock Gets Downgrade from Phillip Securities

Posted by Geri Gentry on Oct 24th, 2026

Netflix (NASDAQ:NFLX – Get Free Report) was downgraded by stock analysts at Phillip Securities from a “strong-buy” rating to a “moderate buy” rating in a report issued on Friday, Zacks reports.

A number of other research analysts have also weighed in on the company. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $80.00 price objective (down from $95.00) on shares of Netflix in a report on Wednesday. Rosenblatt Securities set a $71.00 target price on Netflix and gave the company a “neutral” rating in a report on Wednesday. China Intl Cap upgraded shares of Netflix to a “strong-buy” rating in a research report on Tuesday, July 21st. Oppenheimer reaffirmed an “outperform” rating and set a $80.00 price target (down from $85.00) on shares of Netflix in a research note on Wednesday. Finally, Wells Fargo & Company cut shares of Netflix from a “neutral” rating to an “underweight” rating and lowered their price target for the stock from $80.00 to $57.00 in a research note on Friday, September 18th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $89.59.

View Our Latest Stock Report on NFLX

Netflix Stock Performance

NASDAQ NFLX opened at $65.85 on Friday. The stock has a market capitalization of $270.40 billion, a price-to-earnings ratio of 19.03, a PEG ratio of 0.98 and a beta of 1.62. The business’s 50 day moving average is $74.27 and its two-hundred day moving average is $79.64. Netflix has a 12-month low of $64.10 and a 12-month high of $116.73. The company has a current ratio of 1.07, a quick ratio of 1.14 and a debt-to-equity ratio of 0.43.

Netflix (NASDAQ:NFLX – Get Free Report) last posted its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating the consensus estimate of $0.82 by $0.05. The business had revenue of $12.87 billion during the quarter, compared to analysts’ expectations of $12.87 billion. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The company’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same period last year, the firm earned $0.59 EPS. Research analysts expect that Netflix will post 3.59 EPS for the current year.

Insiders Place Their Bets

In related news, insider David Hyman sold 5,723 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at $23,027,885. This trade represents a 1.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Neumann sold 9,248 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 179,045 shares of company stock worth $13,132,194. 1.24% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Merkkuri Wealth Advisors LLC acquired a new position in shares of Netflix during the 1st quarter worth approximately $31,000. Bayban lifted its stake in Netflix by 400.0% in the 1st quarter. Bayban now owns 350 shares of the Internet television network’s stock valued at $34,000 after buying an additional 280 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd acquired a new stake in Netflix during the 2nd quarter valued at $26,000. Sawyer & Company Inc acquired a new stake in Netflix during the 3rd quarter valued at $27,000. Finally, Compound Global Advisors LLC acquired a new stake in Netflix during the 2nd quarter valued at $29,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

Positive Sentiment: Netflix reported third-quarter EPS of $0.87, ahead of the $0.82 consensus estimate, while revenue reached $12.87 billion. Operating margin rose to 34.6%, supporting the argument that the core streaming business remains highly profitable. Can Netflix Stock Hold Margin Gains as Content Spending Keeps Growing?
Positive Sentiment: Longer-term bulls argue that Netflix’s profitability, systematic share repurchases, local-language content, and continued subscriber retention could create meaningful upside after the sell-off. Bill Ackman has also returned to the stock and expects annualized returns above 20%. Bill Ackman Lost $400 Million on Netflix
Positive Sentiment: Ark Invest’s Cathie Wood bought 18,000 Netflix shares, signaling that some growth-oriented investors view the two-year-low valuation as an opportunity. Cathie Wood Just Bought Netflix Stock
Neutral Sentiment: Netflix is reportedly planning layoffs at its Bay Area headquarters. The cuts could reduce costs, but they also raise questions about operating priorities and employee productivity. Netflix Stock Slips as Layoffs Hit Bay Area Headquarters
Neutral Sentiment: Paramount Skydance’s completed merger highlights intensifying competition for scale and content across the entertainment industry, potentially increasing pressure on Netflix to sustain its content advantage. Could Skydance Be Bigger Than Disney?
Negative Sentiment: Management reduced its 2026 advertising-revenue outlook to approximately $2.7 billion from about $3 billion. Softer ad growth undermines a major part of Netflix’s expansion thesis and overshadowed the earnings beat. Netflix Cut Its 2026 Ad Forecast by $300 Million
Negative Sentiment: Disappointing fourth-quarter revenue guidance and decelerating growth have led investors to discount the strong quarterly results. Netflix’s reduced 2026 free-cash-flow outlook is another concern as content spending continues to rise. Netflix Has Lower FCF Guidance
Negative Sentiment: Several analysts lowered their price targets or ratings after the report. One fair-value estimate fell from $92.62 to $86.24, while UBS, Guggenheim, and Needham adopted more cautious views. Netflix Stock Fair Value Falls After Cautious Q3 Analyst Revisions
Negative Sentiment: Reports indicate viewing time is declining even though subscribers are staying, suggesting weaker engagement. YouTube and lower-cost streaming alternatives may also be contributing to slower revenue growth. Netflix Is Losing Viewers

About Netflix

(Get Free Report)

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.