Netflix’s weak outlook, Chipotle’s sales challenges, and AEVEX’s reported Navy procurement setback rattled investors.
- Netflix shares fell to a two-year low of $64.10 on lower ad revenue guidance.
- Chipotle shares hit a three-year low of $27.87 after TD Cowen downgraded the stock to Hold.
- AEVEX shares hit a record low of $9.64 following reports of a Navy procurement halt.
Netflix Inc. (NFLX), Chipotle Mexican Grill (CMG) and AEVEX Corp. (AVEX) hit fresh 52-week lows on Wednesday as weak outlook, slowing restaurant traffic and military procurement concerns weighed on investor sentiment.
Netflix and Chipotle Mexican Grill stocks tumbled 5% each, while AEVEX stock plunged 32%.
Netflix Faces Pressure From Its Outlook
Netflix stock fell to a two-year low of $64.10 after the streaming giant reported fiscal third-quarter (Q3) 2026 revenue of $12.87 billion, up about 12% year-on-year, and earnings per share of $0.87, above the consensus estimate of $0.82, according to Fiscal.ai. However, the company’s outlook for Q4 raised concerns about profitability and advertising growth.
Netflix expects its Q4 operating margin to drop to 26%, partly due to restructuring costs. The company also cut its 2026 advertising revenue outlook to $2.7 billion from $3 billion and cut its free cash flow outlook to about $12 billion from $12.5 billion, raising concerns about its financial performance.
However, on Stocktwits, retail sentiment around the stock remained ‘extremely bullish’.
Chipotle Downgrade Raises Sales Concerns
Chipotle stock touched a three-year low of $27.87 after TD Cowen downgraded the stock to ‘Hold’ from ‘Buy’ and slashed its price target to $32 from $44. Analyst Andrew Charles cited weak October traffic trends and questioned whether the restaurant chain could deliver the sales improvement expected during Q4.
The firm expects Chipotle’s same-store sales growth in 2027 to be below Wall Street’s 3% forecast. Deutsche Bank also cut its price target to $45 from $51 ahead of the company’s Oct. 28 earnings report, citing weak restaurant industry conditions and higher labor costs.
Retail sentiment around the stock flipped to ‘bullish’ from ‘bearish.’
Navy Procurement Halt Weighs On AEVEX
AVEX stock plunged to a record low of $9.64 after reports said the U.S. Navy stopped placing additional orders for autonomous maritime vessels produced by BlackSea Technologies, a unit AEVEX acquired earlier this year. The reported decision followed an independent assessment that identified hardware and performance shortcomings.
The procurement setback creates uncertainty around AEVEX’s maritime business strategy and the timing of potential government revenue. However, AEVEX said the Navy did not halt GARC orders over performance issues and that the company has delivered all 325 vessels required under its 2025 contract.
Retail sentiment around the stock flipped to ‘extremely bullish’ from ‘bearish.’
So far this year, NFLX, CMG, AVEX stocks have cratered between 24% and 64%.
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