With Netflix Stock Sliding, Have You Assessed The Risk?
Netflix (NFLX) stock is down 5.5% in 21 trading days. The recent slide reflects renewed concerns around its bundle pricing strategy and its effect on revenue outlook, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Netflix stands today.
- Size: Netflix is a $441 Bil company with $43 Bil in revenue currently trading at $103.96.
- Fundamentals: Last 12 month revenue growth of 15.4% and operating margin of 29.1%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.17
- Valuation: Netflix stock is currently trading at P/E multiple of 487.8 and P/EBIT multiple of 396.8
- Has returned (median) 45% within a year following sharp dips since 2010. See NFLX Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell NFLX Stock
That brings us to the key consideration for investors worried about this fall: how resilient is NFLX stock if markets turn south? This is where our downturn resilience framework comes in. Suppose NFLX stock falls another 20-30% to $73 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
- NFLX Has Bounced From This Price Before. Now What?
- Netflix Stock Could Swing A Third Lower Or Half Higher In The Year Ahead
- Get Paid 12% A Year To Hold NFLX Stock You Already Own
- Netflix Has Changed What It Wants To Be Judged On
- Netflix Stock Has Fallen On Slowing Sales While Margin And Buybacks Compound Earnings
- NFLX Vs Its Peers: The Return Does Not Match The Rank
2022 Inflation Shock
- NFLX stock fell 75.9% from a high of $691.69 on 17 November 2021 to $166.37 on 11 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 August 2024
- Since then, the stock increased to a high of $1,339.13 on 30 June 2025 , and currently trades at $103.96
| NFLX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -75.9% | -25.4% |
| Time to Full Recovery | 832 days | 464 days |
2020 Covid Pandemic
- NFLX stock fell 22.9% from a high of $387.78 on 18 February 2020 to $298.84 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 13 April 2020
| NFLX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -22.9% | -33.9% |
| Time to Full Recovery | 28 days | 148 days |
2018 Correction
- NFLX stock fell 44.2% from a high of $418.97 on 9 July 2018 to $233.88 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 April 2020
| NFLX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -44.2% | -19.8% |
| Time to Full Recovery | 478 days | 120 days |
2008 Global Financial Crisis
- NFLX stock fell 55.9% from a high of $5.81 on 17 April 2008 to $2.56 on 27 October 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 17 March 2009
| NFLX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -55.9% | -56.8% |
| Time to Full Recovery | 141 days | 1480 days |
Feeling jittery about NFLX stock? Consider portfolio approach.
Why Stock Pickers Win More With Multi Asset Portfolios
Stocks can jump or crash but different assets move on different cycles. A multi asset portfolio helps you stay invested while cushioning swings in equities.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices