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Netflix shares slide as weaker ad outlook and softer fourth-quarter forecast overshadow Q3 results

Investivoq PriceTracker

Netflix (NFLX) is down 7.6% today. Here is some analysis on what might have caused this price movement.

Analysis: The selloff appears tied to guidance rather than the quarter that just ended. Netflix delivered third-quarter results in line to slightly ahead on profitability, but investors seem focused on its lower advertising outlook, reduced free-cash-flow forecast, and a fourth-quarter margin profile that includes restructuring costs.

Details:

  • Netflix said third-quarter revenue rose 12% year over year to $12.9 billion, while operating margin reached 34.6%, helped partly by expense timing.
  • For full-year 2026, Netflix said it now expects about $2.7 billion in ad revenue versus an earlier target of roughly $3 billion because some ad product capabilities are rolling out more slowly than expected.
  • Netflix forecast fourth-quarter revenue of about $13.4 billion and operating margin of 26.0%, with margin pressured by recently announced headcount reductions.
  • The company also lowered its 2026 free-cash-flow outlook to about $12.0 billion from $12.5 billion, which may have reinforced concerns that forward momentum is not as strong as investors had hoped.

    • Sources:

    SEC, Yahoo Finance

    Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

    $NFLX Insider Trading Activity

    NFLX Insider Trades

    $NFLX insiders have traded $NFLX stock on the open market 23 times in the past 6 months. Of those trades, 0 have been purchases and 23 have been sales.

    Here’s a breakdown of recent trading of $NFLX stock by insiders over the last 6 months:

    • REED HASTINGS has made 0 purchases and 5 sales selling 794,250 shares for an estimated $71,200,973.
    • THEODORE A SARANDOS (Co-CEO) has made 0 purchases and 6 sales selling 160,474 shares for an estimated $12,136,211.
    • GREGORY K PETERS (Co-CEO) has made 0 purchases and 2 sales selling 54,624 shares for an estimated $4,431,027.
    • BRADFORD L SMITH has made 0 purchases and 2 sales selling 35,990 shares for an estimated $2,789,799.
    • SPENCER ADAM NEUMANN (Chief Financial Officer) has made 0 purchases and 2 sales selling 18,501 shares for an estimated $1,523,981.
    • DAVID A HYMAN (Chief Legal Officer) has made 0 purchases and 2 sales selling 11,445 shares for an estimated $920,920.
    • RICHARD N BARTON has made 0 purchases and 4 sales selling 4,320 shares for an estimated $327,189.

    To track insider transactions, check out Investivoq's insider trading dashboard. You can access data on insider stock transactions through the Investivoq API insider transaction endpoint.

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    $NFLX Hedge Fund Activity

    We have seen 1,667 institutional investors add shares of $NFLX stock to their portfolio, and 1,736 decrease their positions in their most recent quarter.

    Here are some of the largest recent moves:

    • INVESCO LTD. added 92,572,259 shares (+216.1%) to their portfolio in Q2 2026, for an estimated $6,609,659,292
    • FMR LLC removed 68,713,615 shares (-33.6%) from their portfolio in Q2 2026, for an estimated $4,906,152,111
    • JPMORGAN CHASE & CO added 44,322,490 shares (+inf%) to their portfolio in Q2 2026, for an estimated $3,164,625,786
    • SIXTH STREET PARTNERS MANAGEMENT COMPANY, L.P. added 33,723,951 shares (+inf%) to their portfolio in Q2 2026, for an estimated $2,407,890,101
    • BAILLIE GIFFORD & CO removed 20,766,212 shares (-56.2%) from their portfolio in Q2 2026, for an estimated $1,482,707,536
    • BANK OF AMERICA CORP /DE/ removed 20,485,464 shares (-35.4%) from their portfolio in Q2 2026, for an estimated $1,462,662,129
    • PERSHING SQUARE INC. added 13,081,465 shares (+inf%) to their portfolio in Q2 2026, for an estimated $934,016,601

    To track hedge funds' stock portfolios, check out Investivoq's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Investivoq API 13F endpoint.

    $NFLX Congressional Stock Trading

    Members of Congress have traded $NFLX stock 4 times in the past 6 months. Of those trades, 3 have been purchases and 1 have been sales.

    Here’s a breakdown of recent trading of $NFLX stock by members of Congress over the last 6 months:

    • REPRESENTATIVE CLEO FIELDS purchased up to $15,000 on 09/14.
    • REPRESENTATIVE BYRON DONALDS has traded it 2 times. They made 2 purchases worth up to $30,000 on 08/12 and 0 sales.
    • SENATOR CORY A. BOOKER sold up to $15,000 on 08/11.

    To track congressional stock trading, check out Investivoq's congressional trading dashboard. You can access data on congressional stock trades through the Investivoq API Congress trades endpoint.

    $NFLX Price Targets

    Multiple analysts have issued price targets for $NFLX recently. We have seen 4 analysts offer price targets for $NFLX in the last 6 months, with a median target of $110.0.

    Here are some recent targets:

    • Jason Bazinet from Citigroup set a target price of $100.0 on 07/09/2026
    • Laurent Yoon from Bernstein set a target price of $100.0 on 07/08/2026
    • Jessica Reif Ehrlich from B of A Securities set a target price of $125.0 on 05/18/2026
    • Michael Morris from Guggenheim set a target price of $120.0 on 05/15/2026

    This article is not financial advice. See Investivoq's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.