Why NFLX fell on Oct 21
Down 5% on Oct 21, and still 8% under its Oct 20 close.
- It reported quarterly revenue of $12.87B and diluted EPS of $0.87 after the close on Oct 20.
Down 5% on Oct 21, and still 8% under its Oct 20 close.
NFLX's Quality Score fell 1 point on Mon, Nov 9, to 1.
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| Since its 2025 high | Down 53% |
| Latest filing | 10-Q, Oct 21 |
Netflix Stock Faces Growth Test Amid Content Chief Shakeup and Layoffs
NFLX closed −1.0% the next session (Oct 19).
1 more big story on NFLX in the past 12 months, for Pro members.
After its last 4 reports it closed -6.1% on average, higher 0 of 4 times.
Below Averagefor quality, not price, 1 of 14 chart checks firingWhat the Quality Score means
NFLX is #92 of 137 by Quality Score.
| Rank | Stock | Quality Score |
|---|---|---|
| 1 | ||
| 2 | ||
| 3 | ||
| Open for its score | ||
| Open for its score | ||
| Open for its score | ||
| Open for its score | ||
| 92 |
Expected to report Tue Jan 19, after the close (in 71 days).
What an earnings report is: every 3 months, a company tells everyone how much it sold and earned. We read the figures, the outlook, and how the stock moved after.
Sales of $12.9B, 12% more than a year ago; a profit of $0.87 a share, from $0.59.
“In Q3, revenue growth was driven primarily by subscription revenue, reflecting increases in memberships and pricing, growth in advertising revenue and a favorable impact from F/X rates, net of hedging.”
| Line | Q3 2026 | Q2 2026 | Q3 2025 |
|---|---|---|---|
| United States and Canada | $5.6B | $5.4B | $5.1B |
Each quarter's sales and their share of its total. Figures as filed (SEC filing, Oct 21)
| Measure | Figure |
|---|---|
| Advertising revenue | about $2.7B |
“Both Q3 operating income and margin were ahead of forecast due primarily to the timing of expenses and the slight upside in revenue.”
From its results filing (SEC filing · Oct 20)
Sales grew 13% a year over 5 years, fiscal 2020 to 2025.
Its share count fell 0.9% a year over 5 years.
| Reported | Gap | Reaction | 5 days |
|---|---|---|---|
| Oct 20, 2026 | -6.6% | -5.3% | -9.0% |
| Jul 16, 2026 | -11.9% | -7.3% | -7.3% |
| Apr 16, 2026 | -10.6% | -9.7% | -13.9% |
Sales grew every year from 2018 to 2025, to $45B. It made a profit in each of the eight years.
RSI 41.6, MACD above signal, below both averages. Not scored.
4 insiders sold $5.9M across 6 filings in the last 6 months. No open-market buys on record. The newest:
41 trades disclosed in the last six months. The newest:
Officers and directors with a Form 4 in the last 12 months.
In ETFs: NFLX is 1.3% of QQQI, 1.2% of QQQ, and 1.2% of QQQM, the most of the 24 funds Breakaway covers, by each fund's latest filing, Jun 30 to Aug 31, 2026.
Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 325 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.
“The market for entertainment video is intensely competitive and subject to rapid change.”
NFLX scores 1 today, which Breakaway calls Below Average. It is #92 of 137 in Communication Services by Quality Score, with 1 of 14 chart checks firing. Down 5% on Oct 21, and still 8% under its Oct 20 close. Breakaway does not say whether to buy any stock: the score does not know your situation, and it is not a recommendation to buy or sell anything. Please do your own research.
NFLX scores 1 today, which Breakaway calls Below Average (0 to 5). That is #92 of 137 in Communication Services by Quality Score. The score adds up the chart checks, the trend, the company's filed sales, its profits, the news, insider trades, and Congress trades. The section above lists the lines behind NFLX's 1.
4 insiders sold $5.9M across 6 filings in the last 6 months. No open-market buys on record. The newest is Theodore A. Sarandos, Co-CEO, who sold $1.8M on Nov 4. Every filing, with the scored weight, for Pro members.
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Insider and Congress trades, the chart, and the financials, in one score.
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