Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTNeil Patel, The Motley FoolSun, August 30, 2026 at 5:50 PM GMT+2 5 min readOver the past five weeks, the market has pumped some life into Netflix (NASDAQ: NFLX). Shares of the entertainment powerhouse have soared 16% (as of Aug. 27). But this doesn't take away from the negative perception surrounding the business.This streaming stock currently trades 40% off its record from June 2025. This isn't uncharted territory. Long-time investors understand how wild the roller-coaster ride has been. In fact, Netflix has seen its share price fall more than 40% on seven total occasions, including the current drawdown, since its initial public offering (IPO) in May 2002.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »With the shares putting up a mind-boggling trailing-20-year return of 29,700% and the company sporting a significant market capitalization of $332 billion, Netflix obviously bounced back. But it's important for investors to look at history to guide their thinking about what might come next for the stock.Image source: The Motley Fool.This stock isn't protected from some pretty serious bouts of volatility. Less than five months after the IPO, Netflix shares tanked 71% from a fresh all-time high. They then went on to skyrocket 725% over the following 12 months.The stock fell by 64% from January 2004 to the end of August that year. During the subsequent year, it climbed 55%. Just days before Halloween in 2008, Netflix shares were down by 56% from a record high reached just more than six months earlier in April. They more than tripled in the 12 months after.Netflix's worst performance started in early July 2011. The stock lost 82% of its value by the beginning of August 2012. It then surged 357% over the following year. Christmas of 2018 was not nice. Netflix shares dipped 44% during a more than five-month period of time before the holiday. By Christmas Eve of 2019, they had risen 42%.From the end of October 2021 to early May 2022, the stock fell 76%. It proceeded to register a 107% gain over the next 12 months.It goes without saying that the investment community reacts to negative news or the anticipation of difficult times ahead. That's how the stock market works. During each of the 40% (or more) drops Netflix experienced in the past, there was something that caused fear, uncertainty, and doubt.In 2004, direct competitor Blockbuster Online engaged in a price war with Netflix. In 2011, it was the failed Qwikster strategy that tried to split the streaming service from the DVD-by-mail service. In 2022, the business reported a surprise subscriber decline, which resulted in a rapid deterioration in market sentiment.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info