Netflix Stock Plunges 26.8% Year to Date: 3 Key Reasons to Stay Away

Netflix NFLX shares have plunged 26.8% year to date, underperforming the Zacks Broadcast Radio and Television industry's decline of 9.3% and the Zacks Consumer Discretionary sector's return of 25.8%. The selloff is about more than weak sentiment. Revenue growth is slowing, content and live-programming costs are rising, and the stock trades at a premium in a crowded streaming market. Together, these suggest investors should stay away from the stock in the near term, even though its long-term franchise remains intact. NFLX's YTD Price PerformanceZacks Investment Research Image Source: Zacks Investment Research Slowing Revenue Growth Clouds NFLX's Near-Term Outlook Netflix's growth engine is slowing. Second-quarter 2026 revenues rose 13.