Netflix is the king of streaming. So why is its stock down this year?

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Set us as preferred Netflix has long been seen as the winner in the streaming wars, with more than 325 million subscribers globally and hits like “Stranger Things” and “KPop Demon Hunters.” For months, Netflix had been telling investors how it planned to scale its business to new heights by acquiring Warner Bros.Discovery, a potentially transformative media deal.But after the streaming giant passed on buying the media company in February, Netflix has faced persistent questions from investors about its plans for staying on top.Reflecting the investor unease, Netflix’s stock price, which closed Tuesday at $73.68 a share, has declined 21% this year and is down 42% from a year ago.

“Obviously, they have a very successful business,” said Ross Benes, a senior analyst at research firm eMarketer, adding that most of Netflix’s revenue comes from its subscriptions.“Your investors always want to just see more and more and more, and they mostly provide that one thing.” Part of the reason investors are anxious is that Netflix’s share of TV viewing time in the U.S.

has steadily declined in recent months as rival YouTube has gained market share, according to Nielsen data.Netflix represented 7.8% of all TV viewing in the U.S.

in April — the lowest percentage since May 2025.It was 7.5% a year ago, Nielsen said.By comparison, YouTube has seen its share of the streaming audience go up.

YouTube’s TV viewing share in April rose to 13.4%, up from 12.4% a year earlier, Nielsen said.Hollywood Inc.

When Netflix was trying to establish itself as a place for original TV shows, “Stranger Things” was a key program that pierced the cultural zeitgeist.Some investors fear that if viewership is down, subscribers could cancel the service, which would negatively affect the platform’s growing advertising business.It could als...