Why is NFLX down?
Down 5% on Oct 21, and still 10% 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 10% under its Oct 20 close.
NFLX's Quality Score rose 1 point on Fri, Oct 30, to -2. Made a higher high and a higher low.
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| Since its 2025 high | Down 54% |
| Latest filing | 10-Q, Jul 17 |
In the newsDruski Signs Netflix Development Deal
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.
Poorfor quality, not price, 1 of 14 chart checks firingWhat the Quality Score means
Well below its recent run. NFLX scores -2 today, against a median of 2 over its last 20 recorded sessions.
NFLX is #112 of 137 by Quality Score.
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Expected to report Tue Jan 19, after the close (in 78 days). Expected.
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.”
NFLX's results filing gives no sales by line in a table we read.
| 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 sessions |
|---|---|---|---|
| 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.
3 insiders sold $6.4M across 5 filings in the last 6 months. No open-market buys on record. The newest:
38 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 1.2% 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 -2 today, which Breakaway calls Poor. It is #112 of 137 in Communication Services by Quality Score, with 1 of 14 chart checks firing. Down 5% on Oct 21, and still 10% 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 -2 today, which Breakaway calls Poor (below zero). That is #112 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 -2.
3 insiders sold $6.4M across 5 filings in the last 6 months. No open-market buys on record. The newest is Spencer Adam Neumann, Chief Financial Officer, who sold $701K on Aug 10. Every filing, with the scored weight, for Pro members.
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