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NFLX
LONGINSIDER SELLNETFLIX INC.
Funds
4
Score
6.00
vs SPY
-26.9%
Stock return (since Q-end)
-10.5%
SPY return (since Q-end)
+16.3%
Current price
$86.02
News Summary
NegativeNetflix delivered a modest revenue beat in Q1 2026 (+16.2% YoY) but missed EPS estimates by 8.55%, with bottom-line results heavily inflated by a $2.8B one-time termination fee from the abandoned Warner Bros. acquisition. The company maintained full-year guidance and raised free cash flow outlook, but faces material headwinds including an Italian court ruling voiding price increases (affecting 5.4M subscribers with refund obligations up to €500), similar regulatory challenges across the EU, a 30% stock decline since the failed acquisition announcement, and analyst downgrades citing elevated valuation.
Red flags
- •EPS missed consensus by 8.55% ($1.23 vs. $1.34 expected); core profitability masked by one-time $2.8B termination fee
- •Italian court ruled price increases unlawful; ordered Netflix to refund current and former subscribers (€250–€500 each); similar lawsuits pending in Germany, Netherlands, Poland
- •Stock declined 30% since Warner Bros. acquisition announcement in December 2025; additional 9–10% drop post-Q1 earnings
- •Leadership transition with Reed Hastings' departure; co-CEO structure may signal strategic uncertainty
- •Erste Group downgrade citing 'significantly higher' valuation vs. peers with limited upside
- •Regulatory antitrust scrutiny from DOJ on failed WBD merger; litigation risk escalating across EU
Funds Buying (4)
| Fund | Manager | Shares Held | ∆ Shares | Position Value | QoQ | Status |
|---|---|---|---|---|---|---|
| Coatue Management | Philippe Laffont | 6.9M | +6.9M | $662.8B | — | NEW |
| Tiger Global | Chase Coleman | 2.4M | +2.4M | $234.5B | — | NEW |
| Point72 | Steve Cohen | 230K | +230K | $22.1B | — | NEW |
| Soros Fund Management | Soros Family Office | 48K | +48K | $4.6B | — | NEW |
Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.
Insider Activity
| Name | Title | Type | Shares | Price | Value | Filed |
|---|---|---|---|---|---|---|
| Peters Gregory K | Co-CEO | SELL | 27K | $88.69 | $2.42M | 2026-05-07 |
| Neumann Spencer Adam | Chief Financial Officer | SELL | 9K | $88.95 | $0.82M | 2026-05-07 |
| SARANDOS THEODORE A | Co-CEO | SELL | 13K | $87.96 | $1.15M | 2026-05-05 |
| SARANDOS THEODORE A | Co-CEO | SELL | 7K | $87.97 | $0.64M | 2026-05-05 |
| SARANDOS THEODORE A | Co-CEO | SELL | 7K | $87.98 | $0.62M | 2026-05-05 |
| HYMAN DAVID A | Chief Legal Officer | SELL | 6K | $88.08 | $0.50M | 2026-05-05 |
| HASTINGS REED | — | SELL | 188K | $92.28 | $17.39M | 2026-05-01 |
| HASTINGS REED | — | SELL | 106K | $93.54 | $9.90M | 2026-05-01 |
| HASTINGS REED | — | SELL | 113K | $94.17 | $10.67M | 2026-05-01 |
| Neumann Spencer Adam | Chief Financial Officer | SELL | 29K | $98.00 | $2.81M | 2026-04-02 |
| HASTINGS REED | — | SELL | 152K | $95.02 | $14.45M | 2026-04-01 |
| HASTINGS REED | — | SELL | 248K | $95.68 | $23.72M | 2026-04-01 |
| HASTINGS REED | — | SELL | 21K | $96.66 | $1.99M | 2026-04-01 |