Key Stats for Netflix Stock
- Price change for Netflix stock in the last 6 months: -34%
- $NFLX Stock Price as of Oct. 15: $73
- 52-Week High: $125
- $NFLX Stock Price Target: $92
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What Happened?
Netflix (NFLX) is laying off about 6% of its workforce, or roughly 1,000 employees, the company’s biggest cut since 2022.
An internal memo seen by Reuters shows most of the cuts will hit the product, tech, legal, and human resources teams.
Co-CEOs Greg Peters and Ted Sarandos told staff the company needs to be “disciplined” about where it allocates capital.
They also said the business is strong and still on track to hit its full-year forecast.
Netflix had about 16,000 employees at the end of last year. The last big round of layoffs came in 2022, when it cut about 450 jobs after losing subscribers for the first time in more than a decade.
The cuts come as competition heats up. YouTube and TikTok pull viewers with free, user-generated videos, giving them a cost edge over Netflix.
A failed push for Warner Bros. Discovery’s streaming and studio assets earlier this year also raised doubts about Netflix’s strategy. Paramount later completed its $110 billion deal for Warner Bros.
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What the Market Is Telling Us About Netflix Stock
Investors didn’t panic. Netflix stock rose 0.7% on Wednesday. But Netflix stock is still down almost 25% this year.
The main worry is engagement, or how much time people spend watching. On the Q2 call, management said view hours grew 2% in the first half.
That was a slight pickup from 1.5% growth in 2025. Executives also argued that not all hours are equal. For example, live events bring in new members but don’t add many view hours.
The business itself still looks healthy. Netflix guided for 13% to 14% revenue growth this year, about $6 billion in new revenue.
It also bought back $4.7 billion of shares last quarter, its biggest quarter ever. The company said it has about $27 billion left on its buyback authorization.
Still, some analysts see a risk. Ross Benes of eMarketer says Netflix hasn’t found another major revenue line. He says its subscription business may be nearing a ceiling.
Netflix is pushing into ads, live shows and games. On the call, cloud games players grew 11 times since October.
For Netflix stock, the question is whether those efforts grow fast enough.
Investors will watch whether the job cuts help profits and whether engagement keeps improving. Both will shape Netflix stock from here.
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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!
