Netflix NFLX drops over 9% after hours, how to seize trading opportunities on Gate TradFi?

According to Gate market data, as of April 17, 2026, Netflix (NFLX) is temporarily quoted at $97.30, down 9.8% over the past 24 hours. This decline closely matches the after-hours trading performance earlier.

Review of this week’s trend: On April 16 during regular U.S. stock trading hours, Netflix closed at $107.79, up slightly by 0.07% from the previous trading day, with an intraday high of $108.95 and a low of $106.62. The 52-week price range was $134.12 to $75.01. However, after the earnings release, Netflix’s stock price once plunged 9.6% to $97.44 in after-hours trading. As of Gate’s latest quote, the 24-hour decline has reached 9.8%, with the price hovering around $97.30.

From the broader market environment, the three major U.S. stock indices all closed higher on Thursday: the Dow up 0.2% to 48,578.72 points, the S&P 500 up about 0.3% to 7,041.28 points, and the Nasdaq up about 0.4% to 24,102.70 points, all hitting new all-time highs. Netflix’s countertrend decline was entirely driven by its own earnings guidance falling short of expectations.

Q1 Earnings Analysis: Revenue of $12.25 billion exceeds expectations, but guidance “disappoints”

On April 16, Netflix announced its Q1 2026 earnings after the U.S. stock market closed. On the surface, this is a very impressive report:

Key financial data overview:

• Revenue: $12.25 billion, up 16% year-over-year, beating the market expectation of $12.18 billion
• Net profit: $5.28 billion, nearly doubling year-over-year
• Earnings per share: $1.23, far surpassing the market expectation of $0.76

One reason for the earnings beating expectations is that Netflix received a $2.8 billion reverse termination fee after its failed acquisition of Warner Bros. Discovery. Additionally, Netflix raised prices on three major subscription tiers in the U.S. at the end of March, which is expected to generate significant incremental revenue in 2026 and 2027. Operating profit increased 18% YoY to $3.96B, with an operating margin of 32.3%, higher than last year’s 31.7%. Furthermore, Netflix repurchased 13.5 million shares in Q1, costing $1.3 billion, with remaining authorized buyback capacity of $6.8 billion.

Two main reasons for the sharp after-hours decline:

First, Q2 profit guidance is significantly below expectations. Netflix expects Q2 EPS of only $0.78, compared to the consensus estimate of $0.84 from FactSet. Revenue guidance is $12.57 billion, also below the market expectation of $12.64 billion. More disappointing is that Netflix only reaffirmed its full-year revenue guidance of $50.7 billion to $51.7 billion, without raising it, despite investor hopes that management would raise full-year guidance amid price hikes and accelerated advertising efforts.

Second, co-founder Reed Hastings is about to step down. The earnings report announced that Netflix co-founder and Executive Chairman Reed Hastings will resign from the board in June 2026, ending his 29-year leadership role. Although co-CEO Ted Sarandos explicitly stated during the earnings call that Hastings’ departure is unrelated to the Warner Bros. acquisition, market sentiment was still noticeably affected.

Other noteworthy developments:

Netflix is accelerating its deployment of new technologies and content. The company plans to launch a redesigned mobile app with vertical video features by the end of April, similar to TikTok’s content discovery experience. Meanwhile, Netflix continues expanding AI applications to enhance user experience, having acquired InterPositive in Q1 to provide content creators with more generative AI tools. On the advertising front, management reaffirmed a target of $3 billion in ad revenue for 2026, doubling YoY. However, CFO Spencer Neumann also warned that content amortization costs in Q2 2026 will see the highest YoY growth, putting short-term pressure on profit margins.

Latest institutional outlook: target price up to $130, average rating “Overweight”

Before and after the earnings release, multiple Wall Street institutions updated their ratings and target prices for Netflix:

• Guggenheim (Michael Morris): Maintains “Buy” rating, target $130 (updated April 14)
• Goldman Sachs (Eric Sheridan): Upgraded from “Neutral” to “Buy” on April 6, target raised from $100 to $120
• KeyBanc (Justin Patterson): Maintains “Overweight” rating, target increased from $108 to $115 (updated April 14)
• Wedbush (Alicia Reese): Maintains “Outperform” rating, target increased from $115 to $118 (updated April 13)
• Citigroup: Downgraded from “Buy” to “Market Perform” on April 16

Bloomberg’s consensus among multiple analysts is a “Moderate Buy” with an average target price of approximately $115.80. Compared to Gate’s current quote of $97.30, there is about a 19% implied upside. However, note that many institutions may further adjust their targets after the earnings report, so these ratings are for reference only.

Gate TradFi: How to trade Netflix stocks in one stop on Gate

Traditional U.S. stock trading faces issues like T+2 settlement delays, complex deposit/withdrawal processes, and fixed trading hours. Gate’s TradFi product suite converts real company shares into tradable digital tokens on-chain, allowing crypto users to participate in U.S. stock movements without leaving the Gate platform.

What is Gate TradFi Stock Token?

Gate’s stock tokens (Tokenised Stocks) are an innovative financial bridge—tokens that enable users to conveniently participate in traditional stock price movements on the Gate crypto platform. These tokens are backed 1:1 by actual stocks held by regulated custodians, with prices closely pegged to the real-time prices of the underlying stocks in traditional markets.

For example, searching “NFLX” or “NFLXON” on Gate will bring up the corresponding tokenized trading pairs, which can be bought and sold directly with USDT.

Core advantages of Gate TradFi

24/7 trading: Traditional U.S. stock trading is limited to market hours, but stock tokens support round-the-clock trading. After Netflix’s 9.6% after-hours plunge, users can seize opportunities immediately on Gate without waiting for the next trading session.

USDT as unified margin: Users don’t need to open separate U.S. stock brokerage accounts; they can participate directly with USDT, with funds and risk controls unified within one account system.

Fragmented holdings and low threshold: Greatly lowers the entry barrier for securities trading; small investments are possible.

T+0 instant settlement: Traditional securities settle in T+2 days, but blockchain-based digital securities can settle instantly in T+0, greatly reducing counterparty risk and settlement failures.

Multiple trading modes: Users can choose spot trading (tokenized stocks) or perpetual contracts supporting long/short positions with up to 20x leverage.

Asset coverage of Gate TradFi

Gate’s TradFi product line has accumulated over $20 billion in trading volume, covering three main categories:

• Stock tokens (xStocks zone): Covering tech giants (TSLAx, NVDAx, AAPLx, MSFTUSDT, METAx, AMZNx, GOOGLx), crypto concept stocks (MicroStrategy MSTRx, Coinbase COINx), and other popular blue chips
• ETF products: Including Nasdaq 100 tracking QQQ, S&P 500 tracking SPY, as well as 3x leveraged and inverse ETFs like NVDA3L/3S, TSLA3L/3S, QQQ3L/3S, suitable for different risk preferences
• Bonds and forex: Including long-term bond ETF TLT, and CFD pairs supporting TENCENT, MEITUAN, XIAOMI, and 21 other currencies

How to trade Netflix stock tokens on Gate

1. Log in to your Gate account: If you don’t have one, complete registration and identity verification first
2. Deposit USDT: Fund your account with USDT as trading margin
3. Enter TradFi zone: Search and access “TradFi” or “Stock Tokens” section on Gate
4. Select Netflix trading pair: Search “NFLX” or “NFLXON” to find the corresponding tokenized product
5. Place order: Choose spot or contract trading mode, input quantity and price to execute

The price of stock tokens closely tracks the real-time price of the underlying stock in traditional markets, with slight premiums or discounts based on market supply and demand. Specific fee structures can be found in Gate’s latest fee schedule; higher VIP levels usually mean lower fees.

Investment risk warning

Regarding stock token trading: Stock tokens are not equivalent to company shares and do not involve governance or voting rights. Their prices are influenced by both stock market and crypto market sentiment, and contract trading can amplify gains or losses. Users should understand the product’s positioning and operation, and operate cautiously according to their risk tolerance.

Regarding individual Netflix stock investment: This analysis is for informational purposes only and does not constitute investment advice. In the short term, Netflix faces pressure from Q2 guidance shortfalls and management changes; in the medium to long term, attention should be paid to ad revenue growth, content cost control, user growth ceiling, and competitive landscape. The full-year content investment budget in 2026 is estimated near $20 billion, and increased content amortization costs may suppress profit margin improvements. Investment involves risks; proceed cautiously.

Summary

On April 17, 2026, Netflix (NFLX) was temporarily quoted at $97.30 on Gate, down 9.8% over 24 hours. In after-hours trading, the stock once plunged 9.6% to $97.44. Despite Q1 revenue of $12.25 billion (up 16%) and EPS of $1.23 both exceeding expectations, the market was heavily impacted by the Q2 EPS guidance of only $0.78 (below the expected $0.84) and the departure of co-founder Reed Hastings in June. Wall Street analysts’ average target price is about $115.80, roughly 19% above the current price, but ratings may still be adjusted post-earnings.

On Gate, users can leverage the TradFi stock token feature to trade Netflix 24/7, using USDT as a unified margin, without needing to open separate U.S. stock accounts, enabling seamless asset allocation between crypto and U.S. equities within one platform. Whether capturing post-market dips or planning long-term investments, Gate TradFi offers a convenient gateway. Understanding the product’s positioning and operation is the first step toward effective risk management.