Netflix Stock Hits 26-Month Low, But Revenue Tells a Different Story
Netflix inventory fell to $64.10 on Wednesday, its lowest degree since August 2024. The streamer beat revenue estimates, but a weaker fourth-quarter outlook despatched buyers heading for the exit.
The slide leaves shares roughly 50% under their mid-2025 document of $134.12. Yet Netflix’s trailing 12-month income has by no means been increased.
Netflix Stock Beat on Profit, So Why Are Investors Selling?
Third-quarter earnings per share (EPS) got here in at $0.87, above the $0.82 analysts anticipated, in accordance with Reuters. Revenue grew 12% to $12.87 billion, matching forecasts.
However, steerage did the injury. Netflix projected fourth-quarter EPS of $0.67, wanting the $0.73 consensus.
The firm additionally lowered its 2026 promoting income goal to about $2.7 billion from $3 billion. Its shareholder letter blamed a slower rollout of advert options.
The report capped a turbulent week. Netflix lower roughly 1,000 jobs and changed each its chief inventive officer and its movie chief.
“I do know that we may do higher.”
Ted Sarandos, co-CEO of Netflix, made the admission on the post-earnings name. He added that the technique wants no basic shift, solely higher execution within the US.
The full breakdown of outcomes and steerage seems within the infographic under.
Is Anyone Still Watching Netflix?
Revenue knowledge paint a totally different image than the share worth.
Netflix’s trailing 12-month income reached about $50 billion in September. That equals a 20.4% compound annual progress charge since 2015.
Historically, the final stall got here between early 2022 and mid-2023. Growth then resumed, and working margin has since widened to 34.6% from 28.2% a 12 months earlier.
Still, US demand stays an open query. Antenna, a subscription analytics agency, recorded no month-to-month US web subscriber positive factors in 2026 via September.
Netflix disputed that knowledge. The firm mentioned world and US churn improved year-over-year.
Can Netflix Stock Hold Its 2021 Record High?
On the month-to-month chart, NFLX is retesting its 2021 all-time high zone between roughly $65 and $70.
A month-to-month shut under it could expose the 0.618 Fibonacci retracement at $61.29. The subsequent main assist sits close to $41.50.
Meanwhile, resistance stands at $75.20, adopted by $89.10. The month-to-month Relative Strength Index (RSI) has slipped to about 40.
The each day chart reveals a descending parallel channel in place since April 16. Its midline converges with the $61 Fibonacci degree.
Wednesday’s low undercut the July 17 backside. In addition, each day RSI close to 36 alerts agency bearish momentum, although not but oversold.
Buyers did step in early. At the time of writing, NFLX traded at $66.39, down 3.35% on the day, per TradingView.
Netflix now sits between two narratives. Profits and income maintain climbing, whereas YouTube and TikTok compete tougher for viewing time. Whether the 2021 high holds could reveal which story buyers belief extra.
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