Netflix Inc (NFLX) stock expected to decline by -11.98%: What’s driving the pessimism?

Netflix Inc [NFLX] stock prices are up 1.63% to $994.87 at the moment. One of the good ways to gauge the recent performance is if the stock’s short-term value is rising or falling. The NFLX shares have gain 2.37% over the last week, with a monthly amount glided 12.20%, and seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

Netflix Inc [NASDAQ: NFLX] stock has seen the most recent analyst activity on January 24, 2025, when Bernstein upgraded its rating to a Outperform and also boosted its price target to $1200 from $975. Previously, Wolfe Research upgraded its rating to Outperform on January 23, 2025, and kept the price target unchanged to $1100. On January 22, 2025, upgrade upgraded it’s rating to Hold. Rosenblatt upgraded its rating to a Buy but stick to its price target of $1494 on January 22, 2025. Canaccord Genuity upgraded its rating to a Buy and raised its price target to $1150 on January 22, 2025. Barclays upgraded its rating to Equal Weight for this stock on January 22, 2025, and upped its price target to $900. In a note dated January 22, 2025, Pivotal Research Group reiterated an Buy rating on this stock and boosted its target price from $1100 to $1250.

The stock price of Netflix Inc [NFLX] has been fluctuating between $542.01 and $999.00 over the past year. Currently, Wall Street analysts expect the stock to reach $875.68 within the next 12 months. Netflix Inc [NASDAQ: NFLX] shares were valued at $994.87 at the most recent close of the market. An investor can expect a potential drop of -11.98% based on the average NFLX price forecast.

Analyzing the NFLX fundamentals

The Netflix Inc [NASDAQ:NFLX] reported sales of 38.88B for trailing twelve months, representing a surge of 15.40%. Gross Profit Margin for this corporation currently stands at 0.46% with Operating Profit Margin at 0.27%, Pretax Profit Margin comes in at 0.26%, and Net Profit Margin reading is 0.22%. To continue investigating profitability, this company’s Return on Assets is posted at 0.16, Equity is 0.38 and Total Capital is 0.24. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of0.63.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 979.59 points at the first support level, and at 964.30 for the second support level. However, for the 1st resistance point, the stock is sitting at 1,009.08, and for the 2nd resistance point, it is at 1,023.28.

Ratios To Look Out For

It’s worth pointing out that Netflix Inc [NASDAQ:NFLX]’s Current Ratio is 1.22. Also, the Quick Ratio is 1.22, while the Cash Ratio stands at 0.73. Considering the valuation of this stock, the price to sales ratio is 10.95, the price to book ratio is 17.20 and price to earnings (TTM) ratio is 50.17.

Transactions by insiders

Recent insider trading involved MATHER ANN, Director, that happened on Feb 03 ’25 when 2682.0 shares were sold. Executive Chairman, HASTINGS REED completed a deal on Feb 03 ’25 to sell 32067.0 shares. Meanwhile, Officer Peters Gregory K bought 7948.0 shares on Feb 04 ’25.

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