Shares of streaming giant Netflix Inc. (NASDAQ: NFLX) head into their next earnings report in a pretty uncomfortable position. Since hitting all-time highs last summer, the stock has fallen roughly 30% in a sustained downtrend, effectively erasing all its 2025 gains. For a stock once viewed as an ultra-reliable performer, the drop has been jarring.
The selloff has been driven by a combination of factors rather than a single shock. The stock was already on the back foot heading into October's earnings report, and the missed earnings per share (EPS) print only added to the negative sentiment.
