The year 2026 so far has been tough for Netflix stock. The heavyweight stock, which was part of the older FAANG group, is down 9% year-to-date, compared to an impressive 13% jump in the Nasdaq Composite.
On 2 September, the stock snapped its two-day losing run to settle at $82.73 on the Nasdaq. At this price, the stock is down over 38% from its all-time high of $134.12, set on 30 June 2025.
This significant drop in the stock price has raised speculation whether this is the right time to buy the stock or if there is more pain in the offing.
Netflix’s latest earnings
Q2 earnings were broadly in line, but Q3 2026 revenue guidance roiled investor sentiment.
Its Q2 revenue increased 13.4% year over year (YoY) to $12.56 billion. However, operating margin slipped to 33.4% from 34.1% YoY.
For Q3, the company expects revenue growth of 11.7% to $12.86 billion. This, as per experts, is below the consensus estimates of around $13 billion. After Q2 results, the stock suffered a cumulative loss of 9% over the next two sessions.
Right time to buy?
According to market experts, Netflix’s stock is struggling because its recent financial results have failed to meet expectations, and industry competition is intensifying.
Media reports suggest that Netflix is planning a change in its strategy to increase its subscriber base. However, growth visibility is what will convince investors to go bullish about it.
On the technical front, according to Vipin Kumar, AVP-Research at Globe Capital Market, after a sharp rally from $18 to $134 over a three-year time span, the stock entered a corrective phase that pulled it back to its previous breakout zone around $68–$70.
Kumar said that at the current juncture, the stock is experiencing a bounce-back rally from this support, which is likely to extend toward the $88–$92 resistance zone.
“We advise short-term traders to hold long positions targeting the $88–$92 zone. Medium- to long-term investors should wait for a clear reversal pattern to form before initiating fresh long positions,” said Kumar.
Aditya Thukral, Founder and Analyst at AT Research and Risk Managers, underscored that the stock has been in a short-term uptrend, with higher highs and higher lows forming.
After a few days of consolidation, the stock price broke out of a symmetrical triangle, a bullish continuation pattern, with $85 as a potential outcome. However, the pieces would soon start experiencing resistance in the $85.50 to $91 range, as this range has proven to be resistance earlier, and the 200-day EMA is also reading within this range, Thukral noted.
According to Thukral, a short-term uptrend is intact in the stock, but the levels where investors need to get cautious are approaching as well.
“The short-term traders can trade a symmetrical triangle pattern in the stock by maintaining stop losses below the $79 levels. Even the existing longs can use $79 as a stop loss level, as below that level, the stock prices will start experiencing downside pressure,” said Thukral.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.