Netflix Closes at Two-Year Low as Ad Target Cut and Downgrade Hit Shares
NFLX is trading near its 52-week low of $64.1 (1.2% above the low) on elevated volume (2.9× avg).
Summary
Netflix closed at $65.04 Wednesday, down 5.3% and its lowest close since August 2024, after the Q3 report showed EPS of $0.87 beating the $0.82 consensus and revenue of $12.87B matching expectations — but the outlook did the damage. The company cut its 2026 ad revenue target to about $2.7B from roughly $3B and guided Q4 revenue to $13.44B versus the $13.51B analysts expected. Needham's Laura Martin downgraded to Hold from Buy and pulled her $120 target, warning the content slate needs about two years to fix under incoming chief content officer Peter Rice, with material write-offs before then. The stock closed below the $65.11 support that held through the July sell-off, and the weekly close on Friday, October 23, is the next test — a finish below that level confirms the break and puts $58.86 next in line.
At the time of this announcement, NFLX was trading at $64.85 on NASDAQ in the Technology sector, with a market capitalization of approximately $270.8B. The 52-week trading range was $64.10 to $124.86. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Finance Magnates.