Not many stocks in the mega-cap space have had the kind of year Netflix Inc (NASDAQ: NFLX) has. Once one of the market's biggest darlings, the stock has fallen hard after reaching record highs in 2025. The streaming giant recently traded just above $73 after a 10-for-1 stock split took effect in November 2025, leaving shares down nearly 45% over the past 12 months and about 30% since mid-April on a split-adjusted basis.
At that price, Netflix is back near levels last seen in 2024 and only modestly above its split-adjusted 2021 trading range. For a business that continues to grow revenue, expand margins and return capital through buybacks, that price action raises a fair question: Has the market overreacted to the downside?
