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.
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.
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