Netflix Stock Has Been Cut in Half Since Its 2025 Peak. History Says What Came After Its Last 5 Drops Like This.
Key PointsNetflix shares have now closed at least 50% under a record high six times since 2002.
Netflix shares are currently trading around $63, significantly lower than their June 30, 2025 peak of $133.91. This stock has fallen 50% or more from its all-time high five times since its 2002 IPO, with the most recent drop occurring on October 21 after the company's third-quarter results. While the short-term outlook seems bleak, the long-term trend has been positive in three out of five instances.
After crossing the halfway mark, the stock has gained 218% and 154% over the next three years, respectively. However, in the other two cases, the stock fell further by at least 63% and 51% before eventually rebounding. Currently, Netflix's business appears stronger than it was in 2022, with rising profits and a record stock buyback.
However, revenue growth is slowing, and the stock is trading at around 17 times 2027 earnings, which is near the price the author would consider a good investment.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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