Key Highlights

● Netflix closed at $67.05 on October 22, a price reflecting its stock split.

● Around 58.4 million shares changed hands as the stock recovered some losses.

● Netflix repurchased a record 63.9 million shares for $4.8 billion in the third quarter.

● The company cut its 2026 advertising revenue target to about $2.7 billion.

Netflix (NASDAQ:NFLX) bounced on Thursday, October 22, 2026, rising on the S&P 500 and closing at $67.05, a price that reflects the company's stock split. The gain came as a relief rally after the shares slid following the streaming company's earnings report earlier in the week.

The move was notable because it came on a bad day for technology and communications stocks. The S&P 500 fell 93.74 points to 7,663.43, its worst session since July, while the Nasdaq Composite tumbled 694 points to 26,008.86.

What sent the stock lower

Netflix's post-earnings slide followed its update on October 20. The company cut its 2026 advertising revenue target to about $2.7 billion from $3 billion and gave a soft outlook for the fourth quarter. According to market data, Netflix guided to fourth-quarter earnings of $0.67 a share, below the $0.73 consensus.

Advertising has been one of the key growth stories for Netflix since it launched its lower-priced ad-supported plan, so a reduced target raised questions about how quickly that business can scale.

Why buyers returned

On Thursday, investors stepped back in. Around 58.4 million shares changed hands, a sign of active trading as the stock recovered some of its losses.

The company has also been buying its own stock. Netflix repurchased a record 63.9 million shares for $4.8 billion during the third quarter, demonstrating its capacity to return cash to shareholders.

Netflix is also somewhat removed from the artificial-intelligence spending worries that dominated the session. Unlike chipmakers or cloud providers, its business is built on subscriptions and advertising rather than on huge AI infrastructure budgets.

Streaming peers rallied

The bounce came on a strong day for some media peers. Spotify (NYSE:SPOT) jumped after reporting third-quarter results that showed 788 million monthly active users, ahead of the 758 million forecast, and 306 million premium subscribers. Comcast (NASDAQ:CMCSA), owner of the Peacock streaming service, also climbed after its quarterly profit beat expectations.

Other communications giants struggled. Meta Platforms (NASDAQ:META) fell sharply after its report showed heavy AI spending and negative free cash flow, and Alphabet (NASDAQ:GOOGL) also declined.

A market in rotation

The broader selloff was concentrated in AI and chip stocks. Lam Research (NASDAQ:LRCX)'s supply warning and Meta's spending plans revived questions about the AI build-out, and the Nasdaq lost about $1 trillion in market value as it ended a seven-session winning streak.

But breadth was positive. About two of every three S&P 500 stocks rose, according to market reports, and consumer staples and health care both hit record highs.

Treasuries also rallied, with the 10-year yield falling back below a closely watched threshold for the first time since September 22, which eased some of the pressure on growth-oriented shares.

Netflix's Advertising Business Faces a Scaling Test

Netflix's next challenge is to show progress in its advertising business after cutting its target, and to deliver on its fourth-quarter guidance. Investors will be watching whether the relief rally holds or whether the shares slip back toward their post-earnings lows. Alphabet, owner of YouTube, reports on October 28, which could offer another read on the digital advertising market, the same day the Federal Reserve announces its rate decision.