Netflix Inc (NASDAQ:NFLX) stock is plummeting 11.2% to trade at $66.34 this morning, following the company's slim Q2 earnings beat, showing 80 cents per share on revenue of $12.59 billion, the latter having fell below estimates. Netflix also plans to trim its investor engagement reports, called "What We Watched," to dial back insight.
NFLX has shed 29% in 2026, now headed for its worst daily drop since April 2022. NFLX is trading at two-year lows right out of the gate, now a far cry from its late-May 2025 record peak.
While analysts have yet to respond to today's grim earnings, there is plenty of room for downgrades. Currently 36 of the 49 covering brokerages sport a "buy" or "strong buy" recommendation, which could trigger more headwinds should this bullish sentiment begin to unwind.
Call traders have been circling Netflix despite its recent underperformance. This is per the 50-day call/put volume ratio of 3.12 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 87th annual percentile. Echoing this is the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.56, which ranks higher than just 1% of readings from the past year.
Plus, Netflix stock sports a Schaeffer's Volatility Scorecards (SVS) reading of 83 out of 100. This suggests the stock has realized higher volatility than its options have priced in over the past 12 months.
