Observed Signal · Jul 13, 2026 · Earnings Report · Source: CNBC Investing · Impact: 4/5 · Sentiment: Neutral
Netflix Stock Risks Breaking $70 Support This Week
Netflix faces downside risk as it prepares to report second-quarter results post-market on Thursday, with NYSE insider Jay Woods warning the stock could slide below a key $70 support level. Woods noted Netflix has fallen about 40% over the past year, has sold off after each of its last four earnings reports, and cited chart patterns that could signal a larger breakdown toward $57 if $70 fails. Woods also flagged other events to watch this week: earnings from Johnson & Johnson and Fifth Third Bancorp, testimony from Federal Reserve Chairman Kevin Warsh, and upcoming BLS CPI and PPI releases.
Netflix is a major streaming platform; its Q2 earnings and guidance can influence investor sentiment, CTV ad inventory outlook, and broader media-advertising market dynamics.
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Key Takeaways & Evidence Grounding
- Netflix is scheduled to release second-quarter financial results post-market on Thursday.
- Jay Woods said Netflix shares could slide below the critical $70 level and, if broken, could test $57 on a longer-term basis.
- Netflix shares have fallen roughly 40% over the past 12 months and have sold off after each of the last four earnings reports.
- The article cites Netflix's underwhelming forward guidance earlier in the year, uncertainties from an unrealized bid to acquire Warner Bros. Discovery, and the departure of co-founder Reed Hastings as drivers of the decline.
- Other events highlighted for the week: earnings from Johnson & Johnson and Fifth Third Bancorp; testimony by Federal Reserve Chairman Kevin Warsh; and BLS releases of the consumer price index (CPI) and producer price index (PPI).
Connected Companies & Entities
4 Entities mapped“Wall Street is focused on Netflix as the streaming platform prepares to release its second-quarter financial results post-market Thursday at...”
“Shares of Netflix have plunged 40% over the past year as the streaming platform issued underwhelming forward guidance earlier this year, con...”
“In the exclusive video, Woods also talks about other events he’ll be watching this week, including: Two other key earnings report this week:...”
““This stock has been beaten down,” Woods told CNBC, noting that shares could slide below the critical $70 level....”
Related Market Signals & Shifts
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Traders Bet on Netflix Comeback Quarter
Options traders showed bullish positioning ahead of Netflix's earnings on Thursday, with call volumes rising and many traders selling at-the-money puts. Data from ThinkOrSwim, SpotGamma and Cboe LiveVol cited increased call buying and heavy put-selling activity, while options pricing implies an expected post-earnings swing of about 7.6%. Analysts flagged that Netflix is testing technical support near $70–$75, and Nielsen data show Netflix's U.S. TV viewership share touched its lowest level in over a year. Commentators noted engagement pressures from the mix shift toward ad-supported subscribers and rising competition.
Netflix Heads for Worst Year Since 2022; Wells Fargo Downgrades
Wells Fargo analysts downgraded Netflix to 'Underweight' from 'Equal Weight' and reduced their price target from $80 to $57, signaling a potential 24% downside. The downgrade is driven by declining engagement metrics, as viewership dropped 1.6 hours per subscriber per day in the first half of 2026, an approximate 8% decline adjusted versus 2023. Netflix shares have fallen nearly 20% in 2026 and 28% over the past year, putting it on track for its worst performance since 2022. The bank emphasizes that hit content is essential for a recovery. Despite this bearish outlook, most analysts (38 of 52) still rate the stock as a buy or strong buy, indicating a divergence of opinion.
Netflix Downgrade Risk; Deutsche Bank Says Buy Dip
Deutsche Bank upgraded Netflix to 'buy' from 'hold', citing the company's competitive advantages in international production. Analyst Bryan Kraft lowered the price target to $95 from $100, still implying 37% upside. Shares are down over 14% in September and over 26% year-to-date, on pace for worst annual decline since 2022. Concerns about user engagement have weighed on the stock, after Wells Fargo downgraded to underweight earlier in the month. Kraft argues that Netflix's advantage in global content production will sustain its leadership, and notes that over 60% of production is outside the US. He also highlights Netflix's potential as a platform (NAAP) beyond being a vertically integrated producer.
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