Netflix Stock: Accelerated Decline with a 3.94% Drop at Close
Netflix continues its downward trend, dropping 3.94% in the session on November 20th, closing at $105.67. This recent decline occurs as the streaming platform faces several challenges: the fallout from disappointing results, turbulence from a recent stock split, and the intensification of a battle to acquire Warner Bros Discovery.
Market Performance and Recent Trends
Netflix closed at $105.67 on Thursday, November 20th, marking a 3.94% decrease from the previous close. Trading volume reached 36.6 million shares, representing 0.86% of the capitalization, indicating a moderate level of transaction activity despite ongoing events. Meanwhile, the benchmark S&P 500 index advanced by 0.36%, reaching 6,740.28 points, highlighting the disparity between Netflix and the broader market. The week was particularly challenging for the stock. Over the last five sessions, Netflix has seen a decline of 8.45%, reflecting a deeper correction than that recorded on this single day. However, this downward movement contrasts with the group's annual trajectory. Over twelve months, Netflix has gained 19.55%, slightly outperforming the S&P 500, which appreciated by 18.33% over the same period. The divergence between recent weakness and annual gains illustrates the volatility characterizing the stock since the beginning of 2025.
Context of Recent Volatility
The events of the past few days are sufficient to explain this turbulence. Netflix first executed a 10-for-1 stock split on November 17th, aimed at improving accessibility for small shareholders. Before this split, the stock was trading around $1,112, a high level that limited access for certain categories of investors. This operation mechanically reduced the unit price to around $111, without altering the intrinsic value. However, the potential optimism linked to the split was quickly overshadowed by disappointments related to the third quarter 2025 results. While revenue grew by 17% to $11.5 billion, in line with analyst expectations, net earnings per share were lower than Wall Street forecasts. Netflix incurred an exceptional tax charge of $619 million in Brazil, significantly penalizing its quarterly profitability. This accounting setback reignited questions about the company's expense management. Adding to this is the strategic uncertainty related to a potential acquisition. Netflix is among the three serious candidates for acquiring Warner Bros Discovery, whose sale was announced in October 2025. On November 20th, Netflix submitted a non-binding offer for the group, alongside Paramount and Comcast. Although Netflix has historically been reluctant to make large acquisitions, the case is compelling: Warner Bros' lucrative franchises would significantly broaden its content portfolio. With only $17 billion in debt and a stock up 24% since January 2025, Netflix had the financial means for such an operation. This battle for Warner Bros adds a layer of volatility, as investors wait for final offers and signals from the seller.
