Netflix (NFLX) Stock Drops to 52-Week Low — Here’s the Bull Case

TLDR

• Netflix stock rose more than 5% on Friday, hitting a 52-week low mid-week before rebounding
• The stock is down over 23% year-to-date and trades well below its key moving averages
• Netflix’s NFL deal runs through 2029-2030, covering five games in the 2026 season plus Christmas Day matchups
• Bernstein analyst Laurent Yoon has an Outperform rating with a $110 price target, implying 49% upside
• The 2026 FIFA World Cup is adding near-term pressure on subscriber growth and engagement

Netflix (NFLX) stock bounced more than 5% on Friday after hitting a 52-week low mid-week, though it remains one of the weaker performers among major tech names in 2026.

Netflix, Inc., NFLX

The stock closed around $73.80 on Friday. Despite the rebound, NFLX is still down over 23% year-to-date and has shed nearly 46% of its market cap since peaking in early 2025.

The broader market barely moved on the same day. The S&P 500 gained 0.3% and the Nasdaq was up just 0.06%.

Netflix’s relative strength index sits at 20.76, well below the 30 level that typically signals oversold territory. The stock also remains 12.71% below its 50-day moving average and 22.6% below its 200-day moving average.

A death cross formed in December 2025, when the 50-day moving average crossed below the 200-day. That signal has stayed in place.

The selling pressure has come from multiple directions. Netflix walked away from a deal to acquire Warner Bros. Discovery assets after markets reacted poorly. More recently, the company reportedly lost a $22 billion bid to acquire Roku, which is set to be acquired by Fox instead.

Co-CEO Ted Sarandos called the Roku effort “muscle-building” and said Netflix remains disciplined on acquisitions.

Live Sports Push

One area drawing investor attention is Netflix’s growing live sports strategy. The company has locked in deals for WWE, MLB, and an expanded NFL package.

The NFL arrangement covers five games during the 2026 season, including a Week 1 matchup between the Rams and 49ers in Australia on September 10, a Thanksgiving Eve game, two Christmas Day games, and a Week 18 contest. The deal runs through the 2029-2030 season.

Netflix is also tied to a proposed Floyd Mayweather-Manny Pacquiao rematch on September 19, though that event faces a legal challenge.

AI Tools and Ad Revenue

Netflix has flagged artificial intelligence as one of its three core strategic priorities. The company is using generative AI for content discovery, personalized recommendations, and ad campaign tools. It also acquired InterPositive to expand its AI filmmaking capabilities.

On the advertising side, Netflix expects ad revenue to roughly double to around $3 billion in 2026, though that still represents under 6% of total projected revenue.

Despite beating Wall Street’s Q1 expectations, management issued a cautious full-year guide. That disappointed investors who were hoping for an upgraded outlook.

The 2026 FIFA World Cup, now featuring 48 teams instead of 32, is adding pressure in the near term. Bernstein analyst Laurent Yoon said the tournament is likely lifting churn and softening subscriber growth in Q2, with the impact potentially spilling into early Q3.

Yoon kept his Outperform rating and set a $110 price target, implying roughly 49% upside from current levels. He noted that Netflix’s content slate typically improves in the second half of the year, which should support subscriber recovery.

Of the 49 analysts covering NFLX, the consensus is a Moderate Buy.

Chairman and co-founder Reed Hastings is stepping down this month, adding another layer of uncertainty heading into the second half of 2026.

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