Netflix Stock Plunges 45% From Peak, Hit Worst Technical Level in Four Years

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Netflix Stock Plunges 45% From Peak, Hit Worst Technical Level in Four Years Nauman Khan Fri, June 26, 2026 at 1:20 PM EDT 1 min read NFLX This article first appeared on GuruFocus . Netflix ( NASDAQ:NFLX ) shares continued to weaken this week and are now trading about 45% below the record high reached in June 2025. Netflix has struggled to sustain recovery attempts in recent months. While the stock posted a rebound during March and April, selling pressure later returned and pushed shares lower. Warning! GuruFocus has detected 4 Warning Signs with PLTR. Is NFLX fairly valued? Test your thesis with our free DCF calculator. The technical backdrop for Netflix has deteriorated further. Netflix is now trading beneath its 20-day, 50-day, 100-day and 200-day moving averages, a pattern often associated with a prolonged downward trend. The stock is also sitting at its largest gap below the 200-day moving average in more than four years. Additional indicators suggest Netflix remains under pressure. Netflix's relative strength index, a measure of momentum, recently dropped into oversold territory and briefly reached levels not seen in years, signaling persistent selling activity. The decline extends beyond Netflix shareholders. Fund ownership data shows hundreds of exchange-traded funds hold Netflix shares, meaning the stock's weakness could affect a broad range of ETF portfolios. Market participants continue to watch whether oversold conditions can support a rebound or if the current downtrend remains intact.

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Netflix(NFLX) stock has fallen about 45% from its 2025 peak, entering its worst technical position in four years. The price has broken below the 20-, 50-, 100-, and 200-day moving averages, and the RSI has entered oversold territory, indicating sustained selling pressure. Because hundreds of ETFs hold the stock, the decline risks spreading across passive portfolios, and if investor sentiment worsens, outflows could accelerate. While a short-term rebound is possible, if the technical disadvantage persists there is significant concern for a long-term downtrend.

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