Major Averages Mixed as Investors Await Fed Policy Meeting Conclusion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2025
0mins
Should l Buy NFLX?
The major averages were mixed near noon as investors await the conclusion of the Federal Reserve's policy meeting, with the results of the meeting set to be released at 2:00 pm ET this afternoon. Markets expect a rate cut, but remain wary about what guidance might come afterward. Equity investors are acting cautiously. With heightened uncertainty about future rate moves and economic growth, trading volume and conviction remain muted.Looking to commodities, gold was fractitonally lower, with the commodity continuing its up-and-down run. Oil prices were lower as well after the release of crude data.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:GE Vernovadoubled its quarterly dividend, raised its buyback authorization, updated its FY25 revenue guidance, andCracker Barrelreportedand cut its FY26 revenue guidanceSK Hynix is exploring a U.S. listing to lift its global valuation,Lakeland Industriesreportedand withdrew its FY26 guidanceAmazonwill pay Italian tax authorities EUR723M in a settlement,2. WALL STREET CALLS:GE Vernovato Outperform at RBC Capital and Oppenheimer after the company raised its medium-term outlookEchoStarto Overweight at Morgan StanleyPepsiCoto Overweight at JPMorganRobloxwith a Buy at B. RileyHSBCBiogento Reduce, its sell-equivalent rating3. AROUND THE WEB:After Netflixannounced its deal for Warner Bros. Discovery, Larry Ellison called President Donald Trump to argue it would hurt competition,Nvidiahas built location verification technology to indicate what country its chips are operating in, a move that could help prevent the chips from being smuggled into countries where the export is banned,AirbusCEO Guillaume Faury said it was possible Boeingwould win in the annual order race for the first time in six years,CoupangCEO Park Dae-jun has resigned and is taking responsibility for a massive data breach at the company,Elliot Investment Management has increased its stake in Toyotato 5.01%, increasing pressure on the client as it plans to buy out the forklift manufacturer,4. MOVERS:Brazeincreases afterand raising its guidance for FY26Photronicsand Dave & Buster'sgain afterTerns Pharmaceuticalshigher after announcing aAeroVironmentfalls afterand cutting its guidance for FY26Wave Life Scienceslower in New York after announcing a5. EARNINGS/GUIDANCE:Chewy, with EPS and revenue beating consensusJ.Jilland provided guidance for FY25 and Q4, with CEO Mary Ellen Coyne commenting, "We delivered better than expected earnings results with topline at the high end of our expectations"Hello Group, with EPS and revenue lower year-over-yearREV Group, with EPS and revenue beating consensusDaktronics, with interim CEO Brad Wiemann commenting, "We delivered another solid quarter of revenue and profit expansion"INDEXES:Near midday, the Dow was up 0.51%, or 242.04, to 47,802.33, the Nasdaq was down 0.18%, or 41.77, to 23,534.72, and the S&P 500 was up 0.10%, or 7.05, to 6,847.56.
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Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise
38 Analyst Rating
27 Buy
10 Hold
1 Sell
Moderate Buy
Current: 107.790
Low
92.00
Averages
114.18
High
150.00
Current: 107.790
Low
92.00
Averages
114.18
High
150.00
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.
Netflix Reports Strong Earnings but Shares Drop 10%
- Strong Earnings: Netflix's Q1 revenue grew 16% year-over-year, with operating income up 18%, both slightly exceeding the company's guidance, indicating robust fundamentals.
- Market Reaction: Despite the strong earnings report, Netflix's stock price dropped 10% on April 17, 2026, due to lukewarm forward guidance, reflecting investor concerns about future growth.
- Cash Flow Improvement: The termination of the Warner Bros. Discovery deal resulted in a $2.8 billion boost in free cash flow for Netflix, enhancing its financial flexibility and competitive position in the market.
- Global Expansion Opportunity: With less than 45% market penetration globally, Netflix has significant room for growth, suggesting that long-term investors may view the recent stock dip as a buying opportunity.
See More
Morgan Stanley Reiterates Buy Rating on Netflix Amid Price Target Adjustments
- Analyst Buy Recommendations: Major analysts including Morgan Stanley, JPMorgan, and Needham reiterated their ‘buy’ ratings on Netflix, citing its compelling valuation due to pricing power, although some analysts adjusted their price targets downward.
- Stock Price Volatility: Following the first-quarter earnings report, Netflix shares stumbled nearly 10%, despite a 16% year-over-year sales increase to $12.25 billion and adjusted earnings per share rising from $0.66 to $1.23, surpassing analyst expectations.
- Strong Market Sentiment: On Stocktwits, retail investor sentiment for Netflix remained ‘extremely bullish,’ with message volume rising 21% over the past week, indicating investor confidence in future growth prospects.
- Price Target Adjustments: Piper Sandler raised its price target on Netflix from $103 to $115 while maintaining an ‘Overweight’ rating, whereas Barclays lowered its target from $115 to $110, reflecting differing market expectations for future performance.
See More
U.S. Major Averages Surge to New Highs Amid Middle East Developments
- Strong Market Performance: The S&P 500 rose 4.5%, the Nasdaq Composite surged 6.8%, and the Dow Jones increased by 3.2% this week, reflecting investor optimism driven by positive developments in the Middle East, pushing the markets to new highs.
- Goldman Sachs Beats Expectations: Goldman Sachs reported Q1 GAAP EPS of $17.55, exceeding the $16.39 analyst estimate, with total revenue of $17.2 billion, significantly up from $13.5 billion a year ago, showcasing the firm's robust performance in the financial sector.
- Netflix's Dim Outlook: Netflix's second-quarter outlook fell short of expectations, projecting only 13% revenue growth and maintaining its 2026 revenue guidance between $50.7 billion and $51.7 billion, below market estimates, leading to a decline in its stock price.
- Bloom Energy Partnership Expansion: Oracle expanded its partnership with Bloom Energy to procure up to 2.8 GW of fuel cell capacity for AI data centers, with an initial 1.2 GW contracted, highlighting the surging demand for rapid deployment energy solutions in the tech sector.
See More
Netflix Stock Plummets Amid Weak Guidance, Investor Panic Ensues
- Investor Reaction: Netflix's stock plummeted nearly 10% in pre-market trading due to weak second-quarter guidance, prompting widespread selling among investors, despite billionaire Philippe Laffont recently increasing his stake by over 75% to approximately 10.8 million shares, valued at around $1 billion.
- Market Confidence Shaken: After a strong 18% year-to-date gain, the sell-off has pushed Netflix below the critical support zone of $100–$105, indicating a shift in market sentiment from support to resistance and reflecting investor uncertainty about future performance.
- Earnings Performance vs. Cost Pressure: While Netflix's revenue exceeded expectations, rising content amortization costs are pressuring margins, leading to concerns about the sustainability of its operating leverage model, which has affected investor confidence.
- Uncertain Future Trajectory: The market is at a crucial decision point; if support holds, a post-earnings bounce may occur, but if it breaks, accelerated selling could ensue, highlighting the divergence in market views regarding Netflix's future performance.
See More
Netflix's Operating Margin Sees Significant Growth
- Operating Margin Growth: Netflix's first-quarter operating margin reached 32.3%, a significant increase from 31.7% year-over-year, indicating ongoing improvements in profitability that are likely to boost investor confidence.
- Advertising Business Potential: Although Netflix's advertising revenue is projected at only $3 billion, management indicates this figure could double from 2025 levels, suggesting that the advertising segment will be a crucial driver of future profit growth, potentially enhancing overall operating margins.
- Content Spending Strategy: Netflix plans to increase content spending at a slower rate than revenue growth, a strategy aimed at expanding operating margins while maintaining content freshness, reflecting the company's confidence in its future profitability.
- Long-Term Growth Outlook: Management anticipates a 31.5% operating margin by 2026, and if this trend continues alongside double-digit revenue growth, Netflix's stock could see significant appreciation in the coming years.
See More
Netflix's Operating Margin Continues to Grow
- Operating Margin Growth: Netflix's operating margin increased from 17.8% in 2022 to 20.6% in 2023, with projections of reaching 26.7% in 2024, indicating significant progress in enhancing profitability that may attract more investor interest.
- Advertising Business Potential: Although Netflix's advertising revenue is expected to reach $3 billion in 2026, nearly double 2025 levels, this emerging business is likely to become a high-margin revenue source, further driving overall operating margin growth.
- Content Spending Strategy: Netflix plans to increase content spending at a slower rate than revenue growth, a strategy aimed at maintaining profitability while ensuring fresh content on the platform, demonstrating the company's confidence in future profitability.
- Long-Term Growth Outlook: If Netflix can continue to expand its operating margin and achieve double-digit revenue growth over the next decade, the stock could see significant appreciation, reflecting market recognition of its premium valuation.
See More
Netflix Reports Strong Earnings but Shares Drop 10%
- Strong Earnings: Netflix's Q1 revenue grew 16% year-over-year, with operating income up 18%, both slightly exceeding the company's guidance, indicating robust fundamentals.
- Market Reaction: Despite the strong earnings report, Netflix's stock price dropped 10% on April 17, 2026, due to lukewarm forward guidance, reflecting investor concerns about future growth.
- Cash Flow Improvement: The termination of the Warner Bros. Discovery deal resulted in a $2.8 billion boost in free cash flow for Netflix, enhancing its financial flexibility and competitive position in the market.
- Global Expansion Opportunity: With less than 45% market penetration globally, Netflix has significant room for growth, suggesting that long-term investors may view the recent stock dip as a buying opportunity.
See More
Morgan Stanley Reiterates Buy Rating on Netflix Amid Price Target Adjustments
- Analyst Buy Recommendations: Major analysts including Morgan Stanley, JPMorgan, and Needham reiterated their ‘buy’ ratings on Netflix, citing its compelling valuation due to pricing power, although some analysts adjusted their price targets downward.
- Stock Price Volatility: Following the first-quarter earnings report, Netflix shares stumbled nearly 10%, despite a 16% year-over-year sales increase to $12.25 billion and adjusted earnings per share rising from $0.66 to $1.23, surpassing analyst expectations.
- Strong Market Sentiment: On Stocktwits, retail investor sentiment for Netflix remained ‘extremely bullish,’ with message volume rising 21% over the past week, indicating investor confidence in future growth prospects.
- Price Target Adjustments: Piper Sandler raised its price target on Netflix from $103 to $115 while maintaining an ‘Overweight’ rating, whereas Barclays lowered its target from $115 to $110, reflecting differing market expectations for future performance.
See More
U.S. Major Averages Surge to New Highs Amid Middle East Developments
- Strong Market Performance: The S&P 500 rose 4.5%, the Nasdaq Composite surged 6.8%, and the Dow Jones increased by 3.2% this week, reflecting investor optimism driven by positive developments in the Middle East, pushing the markets to new highs.
- Goldman Sachs Beats Expectations: Goldman Sachs reported Q1 GAAP EPS of $17.55, exceeding the $16.39 analyst estimate, with total revenue of $17.2 billion, significantly up from $13.5 billion a year ago, showcasing the firm's robust performance in the financial sector.
- Netflix's Dim Outlook: Netflix's second-quarter outlook fell short of expectations, projecting only 13% revenue growth and maintaining its 2026 revenue guidance between $50.7 billion and $51.7 billion, below market estimates, leading to a decline in its stock price.
- Bloom Energy Partnership Expansion: Oracle expanded its partnership with Bloom Energy to procure up to 2.8 GW of fuel cell capacity for AI data centers, with an initial 1.2 GW contracted, highlighting the surging demand for rapid deployment energy solutions in the tech sector.
See More
Netflix Stock Plummets Amid Weak Guidance, Investor Panic Ensues
- Investor Reaction: Netflix's stock plummeted nearly 10% in pre-market trading due to weak second-quarter guidance, prompting widespread selling among investors, despite billionaire Philippe Laffont recently increasing his stake by over 75% to approximately 10.8 million shares, valued at around $1 billion.
- Market Confidence Shaken: After a strong 18% year-to-date gain, the sell-off has pushed Netflix below the critical support zone of $100–$105, indicating a shift in market sentiment from support to resistance and reflecting investor uncertainty about future performance.
- Earnings Performance vs. Cost Pressure: While Netflix's revenue exceeded expectations, rising content amortization costs are pressuring margins, leading to concerns about the sustainability of its operating leverage model, which has affected investor confidence.
- Uncertain Future Trajectory: The market is at a crucial decision point; if support holds, a post-earnings bounce may occur, but if it breaks, accelerated selling could ensue, highlighting the divergence in market views regarding Netflix's future performance.
See More
Netflix's Operating Margin Sees Significant Growth
- Operating Margin Growth: Netflix's first-quarter operating margin reached 32.3%, a significant increase from 31.7% year-over-year, indicating ongoing improvements in profitability that are likely to boost investor confidence.
- Advertising Business Potential: Although Netflix's advertising revenue is projected at only $3 billion, management indicates this figure could double from 2025 levels, suggesting that the advertising segment will be a crucial driver of future profit growth, potentially enhancing overall operating margins.
- Content Spending Strategy: Netflix plans to increase content spending at a slower rate than revenue growth, a strategy aimed at expanding operating margins while maintaining content freshness, reflecting the company's confidence in its future profitability.
- Long-Term Growth Outlook: Management anticipates a 31.5% operating margin by 2026, and if this trend continues alongside double-digit revenue growth, Netflix's stock could see significant appreciation in the coming years.
See More
Netflix's Operating Margin Continues to Grow
- Operating Margin Growth: Netflix's operating margin increased from 17.8% in 2022 to 20.6% in 2023, with projections of reaching 26.7% in 2024, indicating significant progress in enhancing profitability that may attract more investor interest.
- Advertising Business Potential: Although Netflix's advertising revenue is expected to reach $3 billion in 2026, nearly double 2025 levels, this emerging business is likely to become a high-margin revenue source, further driving overall operating margin growth.
- Content Spending Strategy: Netflix plans to increase content spending at a slower rate than revenue growth, a strategy aimed at maintaining profitability while ensuring fresh content on the platform, demonstrating the company's confidence in future profitability.
- Long-Term Growth Outlook: If Netflix can continue to expand its operating margin and achieve double-digit revenue growth over the next decade, the stock could see significant appreciation, reflecting market recognition of its premium valuation.
See More
