Netflix Is Down 43% From Its Most Recent High. History Says This May Happen Next

1 month ago 22

Prosper Junior Bakiny, The Motley Fool

Mon, July 13, 2026 astatine 8:35 AM CDT 4 min read

This hasn't been a large twelvemonth for Netflix (NASDAQ: NFLX). The banal is down 19% to day arsenic of writing. And adjacent worse, it has declined astir 43% from its astir caller high. While the institution remains the person successful streaming, Netflix's mediocre second-quarter guidance, a enactment change, and a agelong acquisition conflict that failed to materialize person each taken a toll connected the stock. Investors whitethorn wonderment what volition hap adjacent and whether this is simply a bully clip to scoop up Netflix's shares connected the dip. Previous instances of the banal dropping by 40% oregon much mightiness springiness america a clue.

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Why the banal could autumn adjacent further

In immoderate cases, Netflix's monolithic declines bottommost retired astatine astir 40%. That's what happened betwixt mid and precocious 2018, erstwhile the banal dropped by that overmuch and subsequently recovered.

NFLX information by YCharts

However, successful different cases, it dips importantly further earlier yet rebounding. Between precocious 2021 and mid-2022, Netflix's banal dropped by much than 70%.

NFLX information by YCharts

Will this clip astir beryllium much similar the archetypal lawsuit oregon the second? Note that successful 2018 and 2021, Netflix's issues stemmed from subscriber maturation (or deficiency thereof). The banal bounced backmost aft overcoming this obstacle. There are reasons to deliberation the institution hasn't yet addressed each the problems that are driving its ongoing sell-off. For instance, Netflix is reportedly experiencing debased subscriber engagement. That tin wounded its concern successful aggregate ways, including lower-than-expected advertisement revenue, less information points to pass its contented library, and little excitement astir its caller releases, which tin harm subscriber growth.

This occupation could pb to anemic gross maturation successful its upcoming 2nd 4th (with results scheduled for merchandise connected July 16), and arsenic unimpressive guidance, perchance sending the banal sharply lower. Further, Netflix is dealing with an progressively competitory landscape. With Paramount pulling disconnected a large acquisition (snatching it from Netflix, nary less) that volition importantly grow its contented room and marque it a stronger streaming platform, Disney getting a bulk involvement successful FuboTV, and Fox acquiring Roku, the contention is improving. Those are immoderate reasons the banal whitethorn not person bottomed retired yet.