Netflix stock hits eighth straight loss after weak guidance

Netflix shares fell 2.6% to $81.21 on Wednesday, extending a slide to an eighth consecutive trading day. If the decline holds through the close, it would be the company’s longest losing streak since Nov. 7, 2022. The stock has fallen since Netflix reported first-quarter results on April 16, when the company beat earnings expectations but issued softer-than-expected guidance and said co‑founder Reed Hastings will step down as chairman at the end of June.

Since the April 16 close of $107.79, shares have dropped roughly 25%. The stock is down about 10% year-to-date and about 34% over the past 12 months.

On Wednesday the stock traded below its 20-day, 50-day and 200-day simple moving averages of $87.39, $92.74 and $100.83, respectively. The nearest dynamic resistance is the Ichimoku Kijun level at $88.88 and the nearest technical support is at $80.51. Momentum indicators including the MACD and ADX are signaling bearish trends, while the RSI, Stochastic RSI and CCI have moved into oversold readings.

Netflix raised its free cash flow guidance for the year and restarted its share repurchase program, with about $6.8 billion available under the current authorization. The company received a $2.8 billion termination fee after a planned deal with Warner Bros. was cancelled.

The company has expanded its advertising business and broadened a partnership with iHeartMedia to add live video podcasting for The Breakfast Club. Netflix has also launched several consumer product collaborations.

Among 56 analysts tracked by FactSet, the average rating is Overweight with a consensus price target of $116.33, implying more than 40% upside from Wednesday’s level. On May 29, Barclays analyst Kannan Venkateshwar maintained a Hold rating with a $110 price target.

Hastings is expected to leave the chairman position at the end of June. Netflix has not announced a successor and is conducting a search for a new chairman.