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NFLX · Analysis updated Nov 4, 2026, 4:51 PM ET
Why is Netflix (NFLX) stock moving?
Netflix has fallen from about $72.6 on Oct 15 to about $63.4. Most of the drop came after the Q3 report on Oct 20. EPS of $0.87 beat the $0.82 consensus and revenue was $12.87B, up 11.9%. But the company cut its 2026 ad revenue forecast to $2.7B from $3B and guided Q4 EPS to $0.67, below the $0.73 consensus. Management also would not commit to its 2027 growth target, and engagement is a worry. Volume spiked to about 799K on Oct 21 as the stock gapped down. It then slid to about $62 and has since traded in a tight $61.4-$63.5 range. The Nov 3 close of $63.42 was a modest uptick. Offsetting factors are a 29.7% trailing net margin, buy ratings kept by UBS, Guggenheim and Deutsche Bank, and commentary that the stock is at a historically low valuation. The company hired a new ads chief and is cutting costs, including 1,000 layoffs. Near-term sentiment is weighed down by downgrades and engagement data. Stabilizing price and falling volume suggest selling pressure has eased.
News behind the analysis
- Netflix Q3 2026 Earnings: Stock Drops Again On Lowered GuidanceQ3 EPS of $0.87 beat expectations. Netflix cut its 2026 ad revenue forecast to $2.7B from $3B and gave a Q4 outlook below consensus.
- Netflix Stock Falls to Two-Year Low After Q3 2026 Earnings ReportShares hit their lowest level since August 2024. Analysts trimmed price targets, and Pivotal cut its year-end target to $65.
- Wall Street Lowers Netflix Stock Price Targets After Weak Outlook Overshadows Q3 EarningsUBS cut its target to $110 and Guggenheim to $78. Both kept buy ratings. Deutsche Bank and William Blair also stayed positive.
- Netflix Q3 2026 Earnings: Live Updates of $NFLX Earnings Call, Stock ForecastQ4 EPS guidance is $0.67 against a $0.73 consensus. Q3 EPS rose 49% year over year.
- Netflix Q3 2026 Earnings Results & Call TranscriptRevenue was $12.87B, up 11.9% year over year, and EPS beat the $0.82 consensus.
- Netflix Earnings: Recent Slowdown Fears Are Generally Confirmed, but Being Too Bearish Is a MistakeMorningstar says engagement was disappointing and management would not commit to its 2027 double-digit sales growth target.
- Netflix (NFLX) Stock Price Falls As Q3 Earnings Stir Valuation DoubtsThe trailing net margin is 29.7%. One valuation model puts the shares about 22% undervalued.
- Netflix Stock Plunges Nearly 6% Despite Q3 Earnings Beat as Growth Fears MountThe $300M cut to the 2026 ad forecast rattled investors after the Q3 beat.
- Netflix, Inc. (NFLX) Latest Stock News & HeadlinesNetflix hired Darshan Kantak to lead its ads platform and is cutting UK staff. Commentary on its low valuation is also circulating.
- Netflix (NFLX) Stock Price, News & AnalysisReports say Netflix pulled a game-adaptation offer to Microsoft, and Bloomberg says users are watching less. Option traders are moderately bearish.