Netflix Inc. shares romped through the first half of the year on strong earnings and ambitious growth plans. But that rally is now stalled as a pair of unusual risks has investors questioning the company’s elevated valuation.

The streaming pioneer’s stock was the fourth-best performer in the Nasdaq 100 Index in the first six months of 2025, soaring 50%, and the second half of the year seemed to get off to a good start with the June 20 release of the animated musical KPop Demon Hunters. The movie has been a huge hit, becoming Netflix’s most-watched original film. However, the shares are down 9% since the end of June, while the Nasdaq 100 Index is up almost 11% over the same period.

The first-half gains would be reason enough for investors to think twice about buying Netflix shares. Then P

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