NFLX Should I Buy
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Netflix Inc (NFLX) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown strong financial performance in Q4 2025 and received some positive analyst upgrades, the stock is currently oversold with bearish technical indicators, and there are significant concerns regarding its high-debt acquisition strategy and lack of immediate catalysts. Additionally, Congress members have shown a cautious stance by selling the stock recently, and the options data reflects a bearish sentiment. It is recommended to hold off on buying NFLX until the stock shows signs of recovery or positive momentum.
The technical indicators for NFLX are bearish. The MACD is negative and expanding, the RSI indicates the stock is oversold at 18.285, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 76.617, with resistance at 80.453. This suggests downward pressure in the short term.
Strong Q4 2025 financial performance with revenue up 17.61% YoY, net income up 29.43% YoY, and EPS up 30.23% YoY.
Analysts have upgraded the stock recently, citing solid subscriber growth and advertising business performance.
Concerns over Netflix's high-debt acquisition strategy, particularly with the Warner Bros. Discovery deal, which has led to regulatory and political risks.
Congress members have shown a cautious stance by selling the stock recently.
Bearish technical indicators and oversold conditions.
Lack of immediate catalysts for growth, as noted by analysts.
In Q4 2025, Netflix reported strong financial growth: Revenue increased by 17.61% YoY to $12.05B, net income rose by 29.43% YoY to $2.42B, EPS grew by 30.23% YoY to $0.56, and gross margin improved to 45.87%, up 4.94% YoY.
Analysts have mixed views. Recent upgrades from Freedom Capital and Phillip Securities highlight strong Q4 results and long-term growth potential. However, several firms have lowered price targets due to concerns over the Warner Bros. Discovery deal and its impact on margins and free cash flow. Current price targets range from $94 to $135, with a consensus of cautious optimism.
