Shares of Netflix Inc (NASDAQ:NFLX) are trading lower Tuesday afternoon, despite a lack of company specific news for the session. Here’s what investors need to know.
What To Know: The stock is potentially reacting to Monday’s news that Matt and Ross Duffer, the creative force behind the platform’s mega-hit Stranger Things, are leaving for an exclusive deal with Paramount Skydance Corp (NASDAQ:PSKY). The departure is seen as a creative blow to the streaming giant, directly impacting one of its most valuable franchises.
The move, confirmed Monday, is reportedly linked to the Duffer brothers’ desire for robust theatrical releases for their future projects, a strategy Netflix has been hesitant to fully embrace. This creative friction comes at a crucial time, as the final season of Stranger Things is slated to premiere in three parts later this year, with spin-offs planned for 2026.
This development casts a shadow over what had been a stellar period for the company. Netflix stock is up over 36% year-to-date, buoyed by strong second-quarter results and impressive global subscriber growth.
Recent successes, including Squid Game Season 3 and the current Stranger Things 5, have been key drivers of this momentum. Analysts had also lauded Netflix’s strategic push into live sports, with acquisitions like the FIFA Women’s World Cup rights in Canada.
While the fundamental business has shown strength through international expansion and a successful ad-supported tier, the loss of premier talent like the Duffer brothers raises questions for investors about Netflix’s ability to retain top-tier creators in an increasingly competitive landscape.
Benzinga Edge Rankings: From a quantitative perspective, Benzinga Edge data highlights the stock’s factor profile. The company earns exceptional scores for Momentum (89.84), Growth (82.59) and Quality (81.68). This reflects the stock’s powerful recent price trend, robust business expansion, and strong financial health.
Conversely, Netflix receives a very low Value score of 13.21. This signals that, despite its strengths, the stock is considered expensive and trades at a significant premium relative to its underlying financial metrics, a common characteristic for market leaders in high-growth industries.
Price Action: According to data from Benzinga Pro, NFLX shares are trading lower by 2.60% to $1,213.77 Tuesday afternoon. The stock has a 52-week high of $1,341.15 and a 52-week low of $660.81.
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How To Buy NFLX Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Netflix’s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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