Netflix Is Down 38% Since Completing Its 10-For-1 Stock Split. Here's Why the Sell-Off Is Worsening After Its Latest Earnings.

Netflix stock has fallen 37.9% since completing its 10-for-1 stock split in November 2025, with further declines following Q3 2026 earnings. While the company reported solid revenue growth of 11.8% and improved operating margins, it lowered full-year ad revenue guidance by 10% due to slower ad product rollout. The sell-off reflects concerns about slowing growth, increased competition from mobile-focused platforms like YouTube and TikTok, and the impact of recent price increases on price-sensitive subscribers. However, Netflix maintains a strong balance sheet with $8.19 billion in cash and trades at a relatively attractive 17x forward earnings multiple.