Key Stats for Netflix Stock
- Pre-Market Price change for Netflix stock: -7%
- $NFLX Stock Price as of Oct. 20: $69
- 52-Week High: $117
- $NFLX Stock Price Target: $91
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What Happened?
Netflix (NFLX) stock is down almost 7% in pre-market trading today, even as the company beat on earnings but only matched revenue expectations.
- Earnings came in at $0.87 per share, above the $0.82 per share analysts expected.
- Revenue was $12.87 billion, in line with estimates.
Revenue rose almost 12% from a year ago, while membership growth and a March price increase helped.
Net income was $3.66 billion, up from $2.55 billion last year. Netflix said part of that jump came from the timing of expenses.
The weaker spots were in the outlook. Netflix narrowed its 2026 revenue forecast to $51.1 billion, which sits at the low end of its earlier range and below the $51.2 billion Wall Street wanted.
Advertising also slipped as Netflix now expects about $2.7 billion in ad revenue this year, down from roughly $3 billion.
It blamed a slower rollout of some ad tools and Co-CEO Greg Peters said the ads business is still growing over 80% this year.
Costs and leadership changes added to the worries as Netflix laid off about 6% of staff, or roughly 1,000 workers.
Its content chief, Bela Bajaria, is also leaving. Peter Rice will take her place, and the layoffs will cut Q4 operating margin by about 120 basis points.
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What the Market Is Telling Us About Netflix Stock
Investors want more than a revenue match. They are watching viewership, which has stagnated, and rising competition from YouTube.
Netflix said it knows investors are worried about viewing hours growth and says engagement is still healthy. Management pointed to better churn in the U.S. and globally, and said the price hike went as expected.
That supports the case for Netflix stock. Still, lower ad guidance and a thinner full-year forecast gave investors a reason to sell.
The company expects Q4 revenue of $13.44 billion, up more than 11%.
Netflix stock now depends on whether the new content chief can lift U.S. viewing, and the company also plans to give 2027 guidance in January.
Until then, Netflix stock may stay under pressure.
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So what is Netflix stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
