Netflix Sinks to Two-Year Low as Needham Downgrades, Ad Guidance Cut
NFLX is trading near its 52-week low of $64.1 (2.0% above the low) on elevated volume (1.9× avg).
Summary
Netflix shares fell 4.9% to $65.30 Wednesday, touching a new 52-week low of $64.10 and trading at levels last seen in August 2024 — down 28.3% year-to-date. The move extends the slide from Tuesday's Q3 report, where revenue of $12.87B (+12%) and EPS of $0.87 (+49%) beat, but full-year revenue guidance was trimmed to $51.1B and advertising revenue guidance cut to $2.7B from $3B. Needham's Laura Martin downgraded to Hold from Buy and pulled her $120 target, citing weak guidance, executive turnover and a content slate she expects Peter Rice to need roughly two years to fix, with write-offs likely before then. Guggenheim trimmed its target to $78 from $80, Rosenblatt to $71 from $75, and Dan Ives stayed In-Line at $75, flagging the two trimmed numbers — revenue and ad guidance — as the takeaway. The analyst chorus reinforces that the ad business and U.S. engagement are the weak spots, not the headline earnings. Watch the Oct. 26 effective date for Rice as Chief Content Officer and any further detail on the ad-tier trajectory.
At the time of this announcement, NFLX was trading at $65.40 on NASDAQ in the Technology sector, with a market capitalization of approximately $272.3B. 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: Benzinga.