Netflix stock is still trying to regain favor with investors after the video streamer disappointed with its modest beat-and-raise second-quarter report late last month.
On Friday, Netflix stock rose above its 50-day moving average line, though volume was lighter than average, which showed a lack of conviction. The move higher came on news of a successful U.S. advertising up-front season for Netflix.
"This year, we more than doubled our overall commitments, which is in line with our expectations, and saw year-over-year growth across all key categories like Retail, CPG (consumer packaged goods), Telco, Health & Wellness, Entertainment and Tech," Amy Reinhard, president of Netflix's advertising business unit, said in a news release.
"Advertisers are eager to engage with Netflix's upcoming 2025-2026 slate, including the final season of 'Stranger Things' and new seasons of 'Bridgerton,' 'Emily in Paris,' 'Nobody Wants This' and 'Running Point,'" she said.
Netflix also has sold-out of all available advertising slots for its two NFL football games on Christmas Day, she said.
Netflix Stock Retreats
On the stock market today, Netflix stock slid 2.5% to close at 1,214.15. With the drop, it fell below its 50-day line, a key support level.
Netflix stock has been building a flat base with a buy point of 1,341.15, according to IBD MarketSurge charts. That buy point coincides with the stock's all-time high, reached on June 30.
On Monday, JPMorgan analyst Doug Anmuth reiterated his neutral rating on Netflix stock with a price target of 1,300. In a client note, he said investor expectations are elevated after Netflix raised its 2025 outlook when reporting Q2 results.
Meanwhile, Netflix has received a viewership boost from the release of the new season of hit show "Wednesday," starring Jenna Ortega. The first half of the second season premiered on Aug. 6, with the conclusion coming out on Sept. 3.
Netflix stock is on two IBD lists; IBD 50 and Leaderboard.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
