Historical Patterns Show Netflix Stock Rebounds After 35% Declines

Avatar photo

Netflix Stock Overview

Shares of Netflix (NASDAQ:NFLX) are currently trading around $78, approximately 38% below their 52-week high of $124.86 reached in October 2022. From its June 2025 high of about $134, the drop has been nearly 42%, with a low of around 50% observed in July 2022.

Since 2004, Netflix has experienced six declines of 35% or more from a peak, with recovery times ranging from 11 months to over four years. Despite a 76% decline from November 2021 to May 2022, the company continues to report record operating income growth, expected to exceed 20% in 2026. Second-quarter revenue rose 13% year-over-year to $12.6 billion, with an operating income of $4.2 billion.

While historical data suggests recoveries typically follow periods of business strength, management forecasts a slowdown in revenue growth, now expected at around 12%. As a result, potential investors are encouraged to consider the growth trajectory before making investment decisions.

5 Stocks Our Experts Predict Could Double In the Next Year

By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.

The free Daily Market Overview 250k traders and investors are reading

Read Now