Netflix shares declined by approximately 1.6% to 5% on July 18, 2025, despite the company reporting strong second-quarter earnings that beat analyst expectations. The streaming giant posted revenue growth and issued guidance for the third quarter and full fiscal year 2025 that exceeded consensus estimates. However, some market participants expressed disappointment that the margin revisions were not more substantial, leading to profit-taking and a downgrade of Netflix stock from Outperform to Neutral by KGI Securities, with a price target of $1,350. The broader market, including the Dow Jones index, remained relatively steady despite the sell-off in Netflix shares. The stock's decline was attributed to elevated investor expectations rather than weak financial performance.