Tech Stocks Are Down, But Netflix Is Up: What's Going On?

Netflix Inc (NASDAQ:NFLX) shares are trading higher Tuesday afternoon, defying broader tech sector volatility and a price target reduction from JPMorgan. The rebound follows a rocky start to the week after the company began trading on a 10-for-1 split-adjusted basis. Here’s what investors need to know.

What To Know: Earlier in the day, JPMorgan analyst Doug Anmuth maintained a Neutral rating on the streaming giant but lowered his price forecast from $127.50 to $124.

Anmuth cited mounting investor concerns regarding media dealmaking, rising competition, and the company’s next growth phase. He noted the stock had recently underperformed the S&P 500, falling 11% since third-quarter earnings.

Read Also: What’s Going On With Netflix Stock?

However, investors appear to be looking past the downgrade to the company’s long-term fundamentals. Anmuth highlighted that Netflix’s advertising business has reached “critical scale,” now boasting 190 million monthly active ad viewers. He projects ad revenue will more than double in 2025 and jump another 46% to $4.3$ billion in 2026.

While the broader Nasdaq-100 faced selling pressure due to sector rotation, Netflix is finding support. With projected 2026 revenue of $50 billion and strong free cash flow estimates, the market is shaking off fears regarding M&A distractions to focus on Netflix’s organic growth execution.

Read Also: Don’t Be Fooled By Netflix’s 90% ‘Drop’: Why ETF Investors Are Barely Blinking

Benzinga Edge Rankings: Benzinga Edge stock rankings show a particularly strong Quality score of 85.21, indicating high operational excellence and financial health for Netflix.

NFLX Price Action: Netflix shares were up 3.51% at $114.11 at the time of publication on Tuesday, according to Benzinga Pro data.

Read Also: Tech Stocks Drop, Pharma Gains As Sector Rotation Picks Up: What’s Moving Markets Tuesday?

How To Buy NFLX Stock

By now you’re likely curious about how to participate in the market for Netflix – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you’re looking to bet against a company, the process is more complex. You’ll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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