Netflix Crashes to a 52-Week Low Amid Earnings Fears

Netflix shares extended their post-earnings slide on Monday, touching a fresh intraday 52-week low of $65.08 and pushing the stock's drawdown from its June 2025 all-time high of $126.71 to roughly 45% to 49%. The move builds on the $67.97 print set in the session following Netflix's July 16 second-quarter report, when shares briefly fell as much as 12% before settling to a roughly 9% decline, itself already below the prior 52-week low of $70.86.

The slide traces back to Netflix's Q2 2026 results: revenue of $12.56 billion grew 13% year over year but landed just shy of the roughly $12.58 billion Wall Street consensus, while earnings per share of $0.80 beat estimates by a penny. What unsettled investors more was the forward look. Netflix guided Q3 revenue to about $12.86 billion, roughly $140 million below expectations and implying growth slowing to the 11% to 12% range from 13% in Q2, and said it would begin publishing engagement data annually starting in 2027 instead of twice a year, a change some investors read as reducing visibility into content performance.

Wall Street has responded by repricing rather than abandoning the stock. Morgan Stanley cut its price target to $83 from $90 while keeping an Overweight rating, and Wells Fargo cut its target to $80 from $105 while maintaining Equal Weight, describing Netflix as a maturing story that needs stronger content-led engagement to support its valuation. No major analyst has moved to a Sell rating, and the sell side's average target of roughly $98 still implies substantial upside from the stock's current price near $69.

SentiSense has already covered Netflix's earnings miss and its initial double-digit plunge this week; what's new here is that the drawdown kept extending into a fresh 52-week low even as analysts stopped short of full downgrades. Worth watching next: whether the narrowed full-year 2026 revenue guidance of $51.0 billion to $51.4 billion holds through Q3, how NFLX trades into that October print without an interim engagement update, and whether the $4.7 billion buyback management authorized around the report translates into support for the shares near current levels.

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