Netflix shares fell 5.88% in pre-market trading, hitting a 20-day low, as investors reacted to the company's recent earnings report and ongoing acquisition efforts.
Despite reporting fourth-quarter revenue and earnings that exceeded market expectations, Netflix's stock dropped due to concerns over its decision to pause share buybacks to accumulate cash for the Warner Bros acquisition. The company is engaged in a competitive bidding war for Warner Bros Discovery, which may impact its short-term financial performance but could provide long-term growth opportunities.
The market's reaction reflects investor apprehension regarding Netflix's financial health amid significant acquisition costs. As the company navigates these challenges, its ability to maintain a strong market position will be crucial for future success.
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 129.47 USD with a low forecast of 92.00 USD and a high forecast of 152.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 129.47 USD with a low forecast of 92.00 USD and a high forecast of 152.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 85.700
Low
92.00
Averages
129.47
High
152.50
Current: 85.700
Low
92.00
Averages
129.47
High
152.50
Phillip Securities
Helena Wang
Sell -> Accumulate
upgrade
$95 -> $100
2026-01-26
New
Reason
Phillip Securities
Helena Wang
Price Target
$95 -> $100
AI Analysis
2026-01-26
New
upgrade
Sell -> Accumulate
Reason
Phillip Securities analyst Helena Wang upgraded Netflix to Accumulate from Sell with a price target of $100, up from $95. The firm upgraded the shares after rolling its valuation to fiscal 2026 estimates. assumptions. Netflix continues to "demonstrate clear leadership" in the video on demand space with strong pricing power, the analyst tells investors in a research note. Phillip believes the company is well positioned "structurally and financially" for long-term growth.
Argus
Buy
downgrade
$141 -> $110
2026-01-22
Reason
Argus
Price Target
$141 -> $110
2026-01-22
downgrade
Buy
Reason
Argus lowered the firm's price target on Netflix (NFLX) to $110 from $141 but keeps a Buy rating on the shares. The company's agreement to acquire Warner Bros. Discovery (WBD) is undoubtedly a bold move although shares have been punished in the aftermath as the market sees risk in Netflix getting involved in a bidding war with Paramount Skydance (PSKY) as well as around regulatory antitrust concerns, not to mention the potential for political interference, the analyst tells investors in a research note. Argus adds however that it sees the deal for the opportunity for Netflix to solidify its position in long form streaming amidst rapidly evolving steaming video environment as YouTube (GOOGL) and TikTok in particular have risen to become major competitors.
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Rosenblatt
Rosenblatt
Neutral
downgrade
$105 -> $94
2026-01-21
Reason
Rosenblatt
Rosenblatt
Price Target
$105 -> $94
2026-01-21
downgrade
Neutral
Reason
Rosenblatt lowered the firm's price target on Netflix (NFLX) to $94 from $105 and keeps a Neutral rating on the shares. Netflix's Q4 results were slightly better than the firm had estimated, but guidance was "a tad light" and disclosure of a subscriber benchmark that shows adding about 25M subs in 2025 to pass 325M in Q4 appears to be a little below the 329M the firm had assumed, the analyst tells investors. The firm notes that its price target does not presume completion of the Warner Bros. Discovery (WBD) merger as it still expects "the Ellisons to dig into their pockets and ultimately outbid Netflix."
BMO Capital
Brian Pitz
Outperform
downgrade
$143 -> $135
2026-01-21
Reason
BMO Capital
Brian Pitz
Price Target
$143 -> $135
2026-01-21
downgrade
Outperform
Reason
BMO Capital analyst Brian Pitz lowered the firm's price target on Netflix to $135 from $143 and keeps an Outperform rating on the shares. The company delivered solid Q4 results, with revenue and operating income above consensus, but the initial 2026 guide was mixed, with revenue of $50.7B-$51.7B only slightly above consensus at the midpoint, the analyst tells investors in a research note. The 31.5% operating margin guidance was also below consensus at 32.7%, as Netflix plans to accelerate content amortization to 10% growth in 2026, the firm added.
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
