Netflix Stock Plunges: Is the Worst Over?

As 2025 concludes, Netflix Inc. faces significant investor headwinds, with its stock experiencing a roughly 20% decline in the final quarter. This performance starkly contrasts with the S&P 500's positive gains, leaving Netflix trading near its value from a year prior. The sell-off stems from a broad loss of investor confidence, amplified by doubts surrounding the company's ability to sustain historical growth rates and unease regarding its potential acquisition of Warner Bros. Discovery.

October's earnings report, while delivering record revenue, missed earnings per share expectations, further unsettling markets. This miss undermined confidence in near-term execution and revived concerns about the sustainability of Netflix's growth. Such uncertainty, especially when investor expectations are high, often triggers sharp market reactions, even when the broader market remains robust. Sentiment has swung decisively negative, pushing Netflix's stock lower.