Netflix stock falls below key moving averages as investors react to failed acquisitions and weaker-than-expected revenue guidance.
Netflix shares declined 4% in Tuesday’s session, extending a 27% drop over the past two months. The sell-off follows failed bids for Roku and Warner Bros. Discovery, alongside investor concerns over slowing growth and leadership changes.
Year-to-date, Netflix stock is down 16%, underperforming the S&P 500’s 10% gain. The company’s shares now trade below their 50-day, 100-day, and 200-day moving averages, signaling broader market skepticism.
First-quarter earnings disappointed, with Netflix maintaining its 2026 revenue guidance at $50.7 billion to $51.7 billion. Operating margin guidance of 31.5% also fell short of analyst expectations, raising questions about cost management amid rising content expenses.