Has Netflix Stock Bottomed? Shares Rebound to Reclaim Short-Term Moving Averages

Netflix Inc stock traded higher on Tuesday, extending a recent rebound as the shares work to reclaim key moving averages. Here's what you need to know.

Netflix stock is up sharply today. What's driving NFLX shares higher?

Netflix Reclaims Short-Term Averages, but Long-Term Trend Concerns Remain

Netflix shares are trading 7% above the 20-day moving average of $73.72 and 5.6% above the 50-day average of $74.66, indicating improved near-term momentum since the July low.

On the other hand, Netflix remains 5.5% below the 100-day moving average of $83.39 and 11.3% below the 200-day average of $88.88. Netflix needs to reclaim key long-term moving averages for the rebound to be seen as a true trend shift rather than a bounce within a larger downtrend.

Despite this long-term pressure, Netflix shares have gained nearly 15% over the past month, further supporting the view that buyers have begun to step back in since the summer low and suggesting a bottom may have formed. A breakout above the long-term moving averages would help bolster the bull case.

Billionaire investor Bill Ackman disclosed last week that Pershing Square Capital Management has built a new 3.15 million share position in Netflix, now representing 4.9% of the firm's portfolio. This marks a notable reversal for Ackman, whose firm poured over $1 billion into Netflix in 2022 but ultimately lost over $400 million after subscriber growth stalled for the first time in years.

Pershing Square laid out its updated thesis in an interim report covering the first half of 2026. The firm now argues that the streaming competition has essentially ended with Netflix as the victor, betting that this leadership will translate into stable double-digit revenue growth for years to come, while margins expand as content spending grows slower than sales.

Wall Street Still Bullish on Netflix Despite Recent Price Target Cuts

Ackman's return is not an isolated event, as Wall Street analysts have also remained broadly supportive of Netflix. The stock carries an overall Buy rating, with an average price target of $91.62 from 50 analysts, a high of $125, and a low of $70. Several analysts cut price targets in July but maintained bullish ratings.

Baird maintained an Outperform rating on July 22 while cutting its price target to $90. Morgan Stanley maintained an Overweight rating on July 17 while lowering its target to $83, and Goldman Sachs maintained a Buy rating the same day while cutting its target to $94.

NFLX Shares Rise

NFLX price action: As of Tuesday's writing, Netflix shares were up 3.18% at $78.44.