Netflix Inc. (NASDAQ:NFLX) shares are climbing Tuesday as the stock claws back from the 52-week lows it hit after disappointing third-quarter guidance overshadowed an otherwise solid second-quarter report.
- Netflix stock is among today’s top performers. Why is NFLX stock up today?
Weak Third-Quarter Guidance Was What Sent Netflix to 52-Week Lows
The post-earnings drop that drove Netflix to its lowest level in a year was not really about the quarter itself. Second-quarter revenue landed at $12.56 billion, a 13% advance from the prior year that fell about $30 million short of what analysts had penciled in, while earnings of 80 cents per share came in a penny ahead of the consensus.
What rattled investors was the forward look. Netflix guided third-quarter revenue to $12.86 billion, representing 12% growth but arriving roughly $150 million below the $13.01 billion the Street had been modeling. Earnings per share guidance of 82 cents also came in beneath the 84 cent consensus.
Full-year revenue guidance was tightened to a band of $51.00 billion to $51.40 billion from the prior range of $50.70 billion to $51.70 billion, with the upper boundary sitting just a hair beneath the $51.41 billion analyst estimate.
Netflix Stock Technical Analysis and Key Levels to Watch
The rebound has enough momentum to hold above the 20-day moving average, where Netflix is trading just 0.6% above, but the broader technical structure still leans bearish. The stock sits 6.5% beneath its 50-day moving average, 15.5% below its 100-day and 20.7% below its 200-day, with a death cross that took hold in December 2025 casting a long shadow over any recovery attempt by creating a persistent ceiling of overhead supply.
RSI at 48.51 occupies neutral ground, neither sufficiently exhausted to trigger a reflexive bounce nor stretched enough to invite aggressive selling, leaving the stock in a position where the next move will need to be earned rather than handed to it.
Clearing $78.50, the zone that aligns with the 50-day moving average, would be the first signal that the recovery has real legs rather than representing another lower high in a longer slide. If the bounce falters, $71.00 just beneath the 20-day moving average is the nearest area where buyers have recently shown a willingness to defend the stock.
Benzinga Edge assigns a momentum score of just 7.27 alongside a quality reading of 92.21, a pairing that captures a fundamentally strong business that has not yet persuaded the price trend to cooperate.
Analysts maintain a consensus Buy rating with an average target of $91.62, though a string of recent reductions reflects an acknowledgment that the path back to those levels requires patience.
- Baird: Outperform, lowers target to $90.00 (July 22)
- Morgan Stanley: Overweight, lowers target to $83.00 (July 17)
- Goldman Sachs: Buy, lowers target to $94.00 (July 17)
NFLX Shares Are Moving Higher
NFLX Price Action: Netflix shares were up 3.84% at $73.10 at the time of publication on Tuesday, according to Benzinga Pro.
Image: Shutterstock
Login to comment