"As shares of Netflix ( NASDAQ:NFLX) have fallen more than 6% this week, retail investor sentiment on platforms like Reddit and X has shifted noticeably. The stock now trades at ~$76.88, down 26% over the past year and 18% year-to-date. On a pre-split basis, Netflix has tumbled from around $1,323 in June 2025 to an equivalent of $769 today, representing a massive 42% decline."
"Mentions of Netflix on Reddit's r/stocks surged in recent weeks, with users questioning the stock's steep decline. The most active thread, "What has happened to NFLX stock?" on r/stocks, accumulated 283 upvotes and 309 comments as investors debated the company's trajectory. As of mid-February, social sentiment has cooled to neutral (42 score) after peaking at very bullish levels (78-82) in late January around the company's most recent earnings release."
"Several concerns are driving the cautious tone: The Warner Bros. Discovery acquisition faces regulatory scrutiny and uncertain timing, with the deal now expected to close after WBD separates its Global Networks division in Q3 2026 Netflix management flagged higher spending plans for 2026, focused on content and product development, pressuring near-term margins Competition from Paramount's rival bid for Warner Bros. assets adds deal completion risk"
Netflix shares have dropped to about $76.88, down 26% year-over-year and 18% year-to-date, and down 42% pre-split from June 2025. The decline accompanies uncertainty around the $82.7 billion proposed acquisition of Warner Bros. Discovery, which faces regulatory scrutiny and is expected to close after WBD separates its Global Networks division in Q3 2026. Retail investor sentiment on Reddit cooled from very bullish to neutral as users questioned the stock's trajectory. Management flagged higher 2026 spending on content and product development, pressuring near-term margins. Thirty-four analysts maintain a consensus Buy with an average $119 price target, citing EPS growth and expansion into live sports, podcasts, and experiences.
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