Netflix's 34.4% Volume Drop Ranks 18th as Earnings Surge and Analysts Split on Valuation

On August 20, 2025, Netflix (NFLX) saw a trading volume of 2.94 billion, a 34.4% drop from the previous day, ranking 18th in the market. The stock closed down 0.02% at $1,209.27, reflecting mixed investor sentiment amid strategic updates and analyst commentary.

Recent developments highlight Netflix’s aggressive expansion in ad-supported content and global subscriber growth. The company reported Q2 2025 adjusted earnings of $7.19 per share, exceeding estimates by 1.7%, with revenues rising 16% year-over-year to $11.07 billion. A key driver was the launch of its Ad Suite in the U.S. and international markets, which analysts view as a catalyst for higher average revenue per user (ARPU) and advertising revenue. Netflix also raised its 2025 revenue forecast to $44.8–$45.2 billion, citing strong membership growth and ad business momentum.

Analysts remain divided on Netflix’s valuation. JPMorgan maintained a neutral stance, citing elevated investor expectations but noting challenges from content delays and paid sharing. Baird raised its price target to $1,500 from $1,300, reflecting confidence in Netflix’s strategic execution. Conversely, Phillip Securities downgraded the stock to Sell, citing a "stretched valuation" and declining viewer engagement. The average 12-month price target among analysts stands at $1,395, with a wide range from $950 to $1,600.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a total return of 31.52% over 365 days, with an average 1-day return of 0.98%. This suggests the approach captured some short-term momentum but also exposed investors to market volatility and timing risks.