Investors and analysts are reassessing their views on the company’s slowing revenue growth, rising competition, and co-founder Reed Hastings’s stepping down as chairman.
- Netflix stock dropped for a third straight week.
- Netflix appointed lead independent director Jay Hoag as chairman of its board, succeeding co-founder Reed Hastings earlier this month.
- Stocktwits sentiment for NFLX shifted to ‘extremely bearish’ from ‘bearish.’
Netflix’s stock has been a laggard in the past few months, and retail investors appear to be losing patience. NFLX was trending high up on Stocktwits late Sunday, after it closed in the red for a third straight week.
Analysts continue downgrading the stock, while institutional investors have piled in. In the first quarter, Marsico Capital Management, Rothschild Investment, and Liberty One Investment Management have sharply increased their stakes, according to the institutional monitoring tool VCP Scanner.
Last week, analysts at Jefferies cut their price target on Netflix stock to $110 from $128, implying a 37% drop from NFLX’s closing price on Friday. While contending that Netflix faces pressure from other forms of internet engagement, they believe Netflix’s new vertical video offering, Clips, and more countries banning social media for kids and teenagers could prove to be tailwinds for the streaming company.
Netflix stock has slid 40% from its all-time high last June and 14% in 2026.
NFLX Stock Under Pressure
The weakness is due to a combination of factors. Investors and analysts are reassessing their views on the company’s slowing revenue growth, rising competition, and co-founder Reed Hastings’s stepping down as chairman.
While the company continues to beat Wall Street’s targets on the quarterly top and bottom lines, the pace of growth has slowed. In its first-quarter report, the guidance and unchanged full-year forecast disappointed investors who had expected stronger upside from recent price increases and its advertising business.
Broadly, concerns that Netflix’s growth is becoming increasingly dependent on monetization initiatives rather than subscriber gains, along with profit-taking after a strong rally and caution toward richly valued tech stocks, have weighed on the shares.
Netflix stopped reporting its quarterly subscriber numbers and average revenue per member (ARM) from the first quarter of 2025 onwards.
Recent Catalysts For Netflix
Netflix appointed its lead independent director, Jay Hoag, as chairman of its board, succeeding co-founder Reed Hastings. Hoag, who has served as lead independent director since 2012, assumed the role following the company’s annual shareholders’ meeting on June 4.
Meanwhile, the streaming giant is reportedly using AI tools to improve content discovery and help viewers navigate an increasingly crowded selection of programming.
Meanwhile, the U.S. Justice Department on Friday cleared Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery. Although it has fared better than NFLX, PSKY is down 21% year-to-date.
NFLX Stock: Retail Traders Losing Interest
On Stocktwits, the retail sentiment for NFLX shifted to ‘extremely bearish’ late Sunday, from ‘bearish’ the previous day. Message volume for the ticker dipped 85% over the last 30 days, while watcher count remained flat.
“$NFLX Won’t move higher until they rethink the ad-supported model. I hardly even log in anymore because the ads make the experience boring and frustrating,” said a trader, while another said Netflix investors should turn to Paramount.
Retail sentiment for PSKY climbed into the ‘bullish’ zone. Message volume for the ticker increased 90%, and watcher count increased by 0.2%.
Still, pockets of confidence remained. “$NFLX Over the last three months, multiple institutions have aggressively accumulated Netflix shares, including purchases of 127,374 shares by Mutual Advisors, 57,521 by TFR Capital, 56,723 by BTC Capital, and 33,733 by Capital Investment Advisors,” said a trader.
“Institutional ownership remains above 80%, suggesting continued confidence in Netflix’s advertising growth, pricing power, and cash-flow outlook,” they added.
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