Netflix stock falls 8% year-to-date as revenue growth fails to impress investors despite strong earnings and subscriber dominance.
Netflix shares have underperformed the broader market in 2024, declining 8% year-to-date while the S&P 500 gained 8%. The drop follows a sharp rebound in March and April, when the stock surged from $77 to $107 after abandoning a bid for Warner Bros. Discovery and reporting strong earnings.
The company posted 16% revenue growth to $12.3 billion and earnings per share of $1.28, up from $0.66 a year earlier. Netflix also maintains a significant lead in subscribers, with 325 million worldwide compared to Amazon’s 200 million. Despite these fundamentals, analysts cite unspectacular growth and an over-extended rebound as reasons for the sell-off.
Erste Group downgraded Netflix from “buy” to “hold” in late April, arguing the stock’s recovery needs stronger financial performance to sustain momentum. The pullback reflects investor caution amid high expectations.