--- title: "Why Is Netflix Stock Falling on Monday?" type: "News" locale: "en" url: "https://longbridge.com/en/news/296127792.md" description: "Netflix (NFLX) stock fell on Monday due to conservative third-quarter revenue and earnings guidance that missed market estimates, outweighing the positive impact of billionaire Bill Ackman's new Pershing Square stake. Despite beating Q2 EPS expectations, Netflix's projected Q3 revenue of $12.86 billion and EPS of 82 cents lagged behind consensus figures, leading to a 2.14% decline." datetime: "2026-08-17T15:43:38.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296127792.md) - [en](https://longbridge.com/en/news/296127792.md) - [zh-HK](https://longbridge.com/zh-HK/news/296127792.md) --- # Why Is Netflix Stock Falling on Monday? **Netflix Inc.** (NASDAQ:NFLX) stock traded lower on Monday as structural headwinds from its second-quarter guidance continued to depress the share price. The decline comes despite a brief lift last Thursday following disclosures from **Pershing Square Capital Management**. The Nasdaq is up 0.14% while the S&P 500 has shed 0.15% and Communication Services is down 0.7%. **• Netflix stock is facing resistance. Why is NFLX stock retreating?** ## **Pershing Square Discloses New Position** Billionaire investor **Bill Ackman** re-entered Netflix, acquiring 3.15 million shares. The new position makes up 4.9% of Pershing Square’s portfolio. Ackman previously exited Netflix in 2022 with a $400 million loss after purchasing over $1 billion in stock at $400 per share and selling at $225 per share. Pershing Square stated that “Netflix has since effectively won the streaming wars” and noted the stock’s “current valuation multiple represents a substantial discount.” **Read Also: David Tepper Cuts Micron Stake, Exits SanDisk as Appaloosa Goes Big on These Magnificent 7 Stocks in Q2** ## **Second-Quarter Revenue Misses Estimates** On July 16, Netflix reported second-quarter revenue of $12.56 billion, missing the Street consensus estimate of $12.59 billion despite rising 13% year-over-year. UCAN revenue hit $5.43 billion (+10%), EMEA reached $4.03 billion (+14%), LATAM generated $1.58 billion (+21%) and APAC totaled $1.51 billion (+16%). Earnings per share came in at 80 cents, beating the Street estimate of 79 cents. View hours grew 2% year-over-year in the first half of 2026. Live programming accounted for 5% of 2026 content spend and 1% of view hours, while ad-related revenue remains on track to top $3 billion for 2026. ## **Soft Guidance Triggers Pressure** Market sentiment remains tied to conservative forward guidance. Netflix projects third-quarter revenue of $12.86 billion (12% year-over-year growth), falling below Street estimates of $13.01 billion. Expected third-quarter earnings of 82 cents per share also lag behind the Street consensus of 84 cents. Additionally, Netflix narrowed its full-year revenue outlook to $51 billion–$51.40 billion from $50.70 billion–$51.70 billion, compared to the Street estimate of $51.41 billion. ## **NetFlix Technical Levels to Watch** From a trend perspective, Netflix is trying to stabilize in the short term, trading above its 20-day SMA ($73.25) and 50-day SMA ($74.75), but it remains 7.9% below its 100-day SMA ($83.54) and 13.6% below its 200-day SMA ($89.04). That "short-term bounce inside a longer-term downtrend" setup often creates choppy tape, especially with the 20-day SMA still below the 50-day SMA (a bearish alignment). - **Key Resistance**: $78.50 - **Key Support**: $71 **NFLX Stock Price Activity:** Netflix shares were down 2.14% at $76.49 at the time of publication on Monday, according to Benzinga Pro data. **Read Also: 'Big Short' Investor Steve Eisman Says AI Has an 'Achilles' Heel' — But It's Too Early to Short the Boom** _Image via Shutterstock_ ### Related Stocks - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [NFLU.US](https://longbridge.com/en/quote/NFLU.US.md) - [NFLW.US](https://longbridge.com/en/quote/NFLW.US.md) - [NFXL.US](https://longbridge.com/en/quote/NFXL.US.md) - [NFXS.US](https://longbridge.com/en/quote/NFXS.US.md) - [NFLY.US](https://longbridge.com/en/quote/NFLY.US.md) - [NFLP.US](https://longbridge.com/en/quote/NFLP.US.md) - [PS.US](https://longbridge.com/en/quote/PS.US.md) - [.IXIC.US](https://longbridge.com/en/quote/.IXIC.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [SNDK.US](https://longbridge.com/en/quote/SNDK.US.md) ## Related News & Research - [NFLX Stock Alert: What to Know as Bill Ackman Takes Stake in Netflix](https://longbridge.com/en/news/295947784.md) - [Netflix No Longer Relies on You Watching Longer, But on Making More Per Hour](https://longbridge.com/en/news/295496286.md) - [Netflix Inc Stock (NFLX) Moved Up by 3.85% on Aug 13: Key Drivers Unveiled](https://longbridge.com/en/news/295813447.md) - [Global Retirement Partners LLC Acquires Shares of 213,406 Netflix, Inc. $NFLX](https://longbridge.com/en/news/296074024.md) - [BREAKINGVIEWS-Bill Ackman commands far too big a premium](https://longbridge.com/en/news/295832715.md)