Netflix Stock Dip Attracts Buyers On Stocktwits, But Many Still See More Pain Ahead
Research firm Moffett Nathanson recently said gains from Netflix’s password sharing crackdown may soon evaporate.
FollowNetflix, Inc. (NFLX) stock fell below the $1,000 level in late February amid broader market weakness. The sell-off intensified as analysts issued cautionary commentary regarding the streaming giant's near-term prospects.
A recent Stocktwits poll asked users whether Netflix's recent weakness provided a “buying opportunity” or is a warning sign for “more pain” ahead.
Most of the nearly 1,000 respondents (40%) said they see the stock setback as an overreaction and an opportunity to buy the dip.
A sizable number (34%) said they would sell the stock, fearing the sell-off will continue, and 17% said they would wait on the sidelines. The remaining 9% were undecided.
Los Gatos, California-based Netflix reported a fourth-quarter beat in late January, with global streaming net subscriber additions coming in at 18.91 million, up from 13.12 million a year ago. Total global streaming paid membership stood at 301.63 million at the end of the quarter.
As the stock ran up after the earnings print, it hit an all-time intraday high of $1,064.50 and a closing high of $1,058.60 on Feb. 14. The move panned out in line with Stocktwits users’ expectations ahead of the quarterly print, with most predicting a push toward new highs.
Since then, it has lost over 16% and is in correction territory.
One retail user said if Netflix shares close March in the red, they may fall to $600 or even below. “Market conditions are not great with geopolitics going on,” they added.
The S&P 500 Index, a broader market gauge, has been trending lower since then amid concerns over President Donald Trump’s tariffs and their potential impact on the global economy and competitive threats facing domestic artificial intelligence (AI) stocks.
To make matters worse, research firm Moffett Nathanson said gains from Netflix’s password sharing crackdown may soon be evaporating. According to the firm, the measure hasn’t been hugely successful in attracting new users but has roped in users who previously used shared passwords as subscribers.
However, JPMorgan analysts affirmed their confidence in Netflix in mid-February, notwithstanding the post-earnings spike. The firm expects 2025 revenue growth to be underpinned by strong engagement and organic subscriber growth and average revenue paid membership growth through recent price increases.
The TipRanks-compiled average analysts’ price target of $1,100.57 for Netflix stock suggests a potential 23.5% upside from current levels.
The stock has little changed year-to-date.
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