0 months ago
Netflix Stock Falls 38%: Is Now the Time to Buy?
Netflix shares have fallen a lot from their highest price.
They were worth $82.73 on September 2, 2026.
The company earned more money in the second quarter than it did a year earlier.
However, its profit margin became slightly smaller.
Netflix also predicted third-quarter revenue below what many experts expected.
This made some investors worry about slower growth and stronger competition.
Some analysts think the stock could rise in the short term.
Other advice says long-term investors should wait until the stock shows a clearer recovery.
Netflix shares closed at $82.73 on September 2, 2026, down more than 38% from their $134.12 record high.
The stock is down 9% in 2026, while the Nasdaq Composite has gained 13%.
Second-quarter revenue rose 13.4% year over year to $12.56 billion, but operating margin fell to 33.4%.
Netflix forecast third-quarter revenue of $12.86 billion, below the roughly $13 billion consensus estimate.
Analysts see a possible rebound toward $88–$92 but advise longer-term investors to wait for clearer evidence of a reversal.
- Who
- Netflix and the market analysts assessing its shares.
- What
- Netflix stock has dropped more than 38% from its record high, prompting debate over whether investors should buy.
- Where
- The shares trade on the Nasdaq.
- When
- The stock closed at $82.73 on September 2, 2026; its record high was set on June 30, 2025.
- Why
- Investor sentiment was hurt by lower-than-expected third-quarter revenue guidance, slowing margin performance, and concerns about competition and future growth.
Wait for confirmation
Trade the rebound
Investment timing
Wait for confirmation
Medium- and long-term investors should wait for a clear reversal pattern before opening new positions because growth expectations and competition remain concerns.
Trade the rebound
Short-term traders may consider the ongoing rebound, with a potential target around $88–$92.
Technical outlook
Wait for confirmation
The stock is approaching resistance, including the $85.50–$91 range and the 200-day exponential moving average, which could limit gains.
Trade the rebound
The stock has formed higher highs and higher lows and broke out of a symmetrical triangle, suggesting a possible move toward $85 or higher.
Risk level
Wait for confirmation
A move below $79 could signal renewed downside pressure, making caution appropriate.
Trade the rebound
Traders holding long positions can use $79 as a stop-loss level while participating in the short-term uptrend.
Key facts
- September 2, 2026 close
- $82.73
- Record high
- $134.12 on June 30, 2025
- 2026 performance
- Down 9%, compared with a 13% gain for the Nasdaq Composite
- Q2 revenue
- $12.56 billion, up 13.4% year over year
- Q2 operating margin
- 33.4%, down from 34.1% a year earlier
- Q3 revenue guidance
- $12.86 billion, versus consensus estimates of about $13 billion
- Technical support and resistance
- Support near $68–$70; resistance zones cited at $85.50–$91 and $88–$92
Quotes
Aditya Thukral
Founder and Analyst at AT Research and Risk Managers
“The short-term traders can trade a symmetrical triangle pattern in the stock by maintaining stop losses below the $79 levels. Even the existing longs can use $79 as a stop loss level, as below that level, the stock prices will start experiencing downside pressure.”
livemint.com
“We advise short-term traders to hold long positions targeting the $88–$92 zone. Medium- to long-term investors should wait for a clear reversal pattern to form before initiating fresh long positions.”
livemint.com
Sources
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