Netflix (NFLX) Shares Slide Despite Earnings Beat
Netflix (NFLX) reported its quarterly results yesterday, posting a modest beat versus Wall Street forecasts on both earnings per share (EPS) and gross revenue. Nevertheless, the market reaction was negative, with NFLX shares retreating in later than-hours trading to around $82.50.
What Is Behind the Decline in NFLX Shares?
According to media coverage, investor pessimism is being shaped by several key concerns:
→ More cautious outlook from management. Netflix has guided for a sluggishdown in revenue growth to 11–13%, down from 15–16% recorded in 2025.
→ Decelerating subscriber additions. Although the company’s global subscriber base reached a new record of approximately 325 million, the pace of new sign-ups is easing. By comparison, Netflix added around 41 million users in 2024, versus about 23 million in 2025.
→ M&A-related uncertainty. As highlighted in our analysis on 8 December, a potential acquisition of Warner Bros. Discovery could have a significant impact on NFLX shares. Such a deal would be substantial in scale and could increase debt levels, adding to investor uncertainty.
NFLX Chart: Technical Perspective
In previous technical assessments of Netflix shares, we identified both upward and downward price channels. Key developments include:
→ In October, the upward channel was broken to the downside, with the former support area near $117 turning into resistance and confirming the dominance of the downward trend.
→ In December, NFLX prices moved into the lower portion of the descending channel, accompanied by higher trading volumes and accelerating downside momentum — a bearish technical signal. The shares also slipped below the psychological $100 mark, which may now cap any recovery attempts.
Should NFLX open today near $82.50:
→ the price would be trading below the lower boundary of the descending channel;
→ it would be close to significant 2025 lows, which could act as a support zone;
→ technical indicators would point to oversold conditions.
These factors may allow for a short-term corrective bounce. However, reversing the broader and well-established downtrend is likely to require stronger fundamental catalysts.
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