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Netflix Stock Plummets: Time to Buy?
3 Sep
Summary
- Netflix stock has fallen 38% from its recent all-time high.
- Q2 revenue grew 13.4% YoY, but operating margin declined.
- Analysts suggest buying on clear reversal patterns, not now.
As of September 3, 2026, Netflix's stock has experienced a significant decline, falling 38% from its all-time high of $134.12 reached on June 30, 2025. Year-to-date, the stock is down 9%, contrasting with the Nasdaq Composite's 13% gain.
In the second quarter of 2026, Netflix reported a 13.4% year-over-year revenue increase to $12.56 billion. However, its operating margin narrowed to 33.4% from 34.1% in the same period last year. For the third quarter, the company anticipates revenue growth of 11.7% to $12.86 billion, which falls below expert consensus estimates.
Market experts suggest that Netflix is exploring strategic shifts to boost its subscriber base. Technically, the stock is showing signs of a bounce-back from a support zone around $68-$70, with potential to reach the $88-$92 resistance area. Short-term traders are advised to hold positions targeting this zone.
Medium- to long-term investors, however, are encouraged to wait for a confirmed reversal pattern. While a short-term uptrend is noted, with a recent breakout from a symmetrical triangle pattern, approaching resistance levels between $85.50 and $91, as well as the 200-day EMA, warrant caution.
