Is Netflix Stock Likely to Drop by Over 60%?

If you’re a Netflix stockholder, the idea of the stock dropping 60% or even 70% might sound scary. But it’s happened before, and it could happen again. Netflix had a fantastic year in 2024, with the stock going up around 90% thanks to measures like cracking down on password sharing and introducing ad-supported streaming plans. However, there are some risks on the horizon. The U.S. is facing economic uncertainties due to tariffs imposed by President Trump, which could lead to lower subscriber growth for Netflix.

In the past, Netflix stock has plummeted by over 70% in a short time. So, is it possible for Netflix’s $870 stock to drop below $300 again? Individual stocks like Netflix can be more volatile than diversified portfolios, so it might be worth considering other investment options like the High-Quality portfolio for more stability and potential returns.

Netflix’s subscriber growth is expected to slow down in 2025 after strong growth in 2024, when they gained over 40 million subscribers. This surge was fueled by efforts to crack down on password sharing and introduce ad-supported plans. But with these strategies reaching their peak, Netflix might struggle to keep growing at the same pace, which could affect the stock’s performance.

With economic uncertainties looming, Netflix, heavily reliant on consumer spending, could face challenges. Trump’s tariff measures and potential inflation could impact the U.S. economy and consumer spending. This could be bad news for Netflix, especially as they’ve raised plan prices and face rising content costs. Increased competition and potential subscriber pushback could further strain Netflix’s profitability and stock performance in the short term. It’s definitely something investors should keep an eye on.