Shares of Netflix (NFLX) fell on Wednesday, putting the streaming giant on track for its longest losing streak since late 2022, even as the company continues to expand its advertising business and maintain shareholder-friendly capital allocation policies.
The stock declined 2.6% to $81.21 during Wednesday’s session, marking its eighth consecutive day of losses if the decline holds through the close.
According to Dow Jones Market Data, that would represent Netflix’s longest losing streak since Nov. 7, 2022, when the shares also posted eight straight daily declines.
The latest weakness extends a broader downturn that has weighed on the stock since the company reported first-quarter earnings in April.
Strong earnings overshadowed by guidance and leadership changes
Netflix delivered first-quarter results that topped Wall Street expectations when it reported earnings on April 16.
However, investors focused instead on weaker-than-expected guidance and the announcement that co-founder and chairman Reed Hastings would step down from his role.
Hastings is expected to leave the chairman position at the end of June, and the company is currently searching for a successor.
Since closing at $107.79 on April 16, Netflix shares have fallen roughly 25%.
The stock is down 10% since the start of the year and has lost 34% over the past 12 months.
The company has nevertheless continued to strengthen its financial position.
Netflix recently raised its free cash flow guidance and resumed its share repurchase program, with approximately $6.8 billion remaining under its existing authorization.
The company also received a $2.80 billion termination fee following the cancellation of a deal involving Warner Bros., providing additional financial flexibility.
Beyond capital returns, Netflix has accelerated the expansion of its advertising business and broadened its partnership with iHeartMedia to include live video podcasting for “The Breakfast Club.”
The company has also launched several new consumer product collaborations.
Technical indicators point to sustained downside pressure
Market technicians say the stock remains under significant selling pressure across multiple timeframes.
Netflix is currently trading below its 20-day, 50-day, and 200-day simple moving averages of $87.39, $92.74, and $100.83, respectively, signaling weakness in both the short and long term.
The nearest dynamic resistance level is the Ichimoku Kijun level at $88.88, while analysts note that the stock faces limited technical support if it fails to hold above the $80.51 level.
Momentum indicators have also turned increasingly negative.
The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) continue to point toward bearish conditions, while the Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) all suggest the stock has entered oversold territory.
Wall Street remains constructive despite recent weakness
Despite the recent selloff, analyst sentiment toward Netflix remains broadly positive.
Among the 56 analysts tracked by FactSet, the stock carries an average Overweight rating with a consensus price target of $116.33, implying upside of more than 40% from current levels.
Barclays analyst Kannan Venkateshwar also maintained a Hold rating on May 29 while setting a $110 price target.
For now, however, investors appear more focused on technical weakness, softer forward guidance, and leadership changes than on Netflix’s improving cash generation and ongoing strategic initiatives.
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