Netflix Wipes Out Five Years of Gains Jeremy Berke Wed, November 11, 2026 at 4:22 PM EST 2 min read NFLX +1.74% NVDA +3.43% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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Netflix shareholders just watched five years of gains go up in smoke.
The stock closed Wednesday at $64.52, up 2% on the day but still a few bucks below where it sat in November 2021 and down 53% from its June 2025 peak of roughly $121.
Nothing in the business is broken. Q3 revenue grew 12% to $12.9 billion and operating income beat Wall Street's estimate. The problem is engagement. Viewers are watching less, and YouTube is eating the living room.
Netflix responded the way big companies respond when the chart goes the wrong way. It cut 1,000 jobs, swapped content chief Bela Bajaria for Disney veteran Peter Rice, and trimmed its 2026 ad revenue target to $2.7 billion from $3 billion.
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Netflix also spent early 2026 trying to buy its way out of the problem. It bid for Warner Bros. Discovery and walked away in February when Paramount Skydance took the whole company for $110.9 billion. Without a studio to absorb, the fix has to come from inside.
That's a harder sell to investors when the balance sheet carries $25.2 billion in content obligations and about $7 billion more debt than cash. It's harder still when management is selling. Co-CEO Greg Peters dumped $1.7 million in stock this week. CFO Spencer Neumann and chief legal officer David Hyman sold earlier this month. Not a confidence signal.
The irony is that Netflix itself is buying. The company repurchased a record $4.8 billion of stock in Q3 at an average price around $75, so it overpaid by current standards.
Bottom line: at 18 times trailing earnings, down from roughly 40 times forward earnings at the peak, Netflix is cheaper than it has been in years. Deutsche Bank upgraded it to Buy with a $95 target. UBS cut its target to $100 from $115. Cheap only matters if people start watching again.
