Netflix Surges to Third Most Traded Stock with $129.41 Billion Volume Despite 5.10% Price Drop

On July 18, 2025, Netflix (NFLX) experienced a significant trading volume of $129.41 billion, marking a 58.17% increase from the previous day. This surge placed Netflix as the third most traded stock of the day. However, despite the high trading volume, Netflix's stock price declined by 5.10%.

Netflix reported record second-quarter revenue and raised its full-year guidance, but the stock still slipped in early trading. The company's strong financial performance, including a 14.2% year-over-year growth in free cash flow, did not prevent the stock from dipping. Analysts suggest that the stock's decline could be attributed to the company's projections for a lower operating margin in the coming quarters.

Netflix's quarterly earnings release showed that the company exceeded net income estimates and lifted its full-year guidance. However, the stock still sank by 5.1% following the release. The company's strong financial performance, including a 20.4% free cash flow margin, has led some analysts to consider the stock a bargain despite the recent dip.

Despite the strong second-quarter results, Netflix's stock has been trading lower. The company's projections for a lower operating margin in the coming quarters, as well as a decline in free cash flow on a quarter-over-quarter basis, have contributed to the stock's decline. However, some analysts remain optimistic about the stock's long-term prospects, citing the company's strong financial performance and dominant position in the video streaming market.