Netflix Inc. (NFLX) Reports Q4 Results Exceeding Estimates, Shares Down 7.1%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Strong Earnings: Netflix reported a 16% year-over-year revenue growth in Q4, meeting expectations, yet shares fell 7.1% in premarket trading, indicating that investor expectations may have been overly optimistic.
- Advertising Revenue Outlook: Wedbush forecasts that Netflix's ad revenue will double to $3 billion by 2026, suggesting significant long-term growth potential despite current investor skepticism following the latest report.
- Robust User Growth: Netflix surpassed 325 million members in 2025, adding over 25 million users, which underscores its dominant position in the streaming market, even as it faces increased content spending pressures.
- Strategic Acquisition Plans: Netflix's proposed $72 billion acquisition of Warner Bros. Discovery could raise financial leverage, but is expected to enhance its content library and competitive edge in the market.
Analyst Views on NFLX
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
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 87.260
Low
92.00
Averages
129.47
High
152.50
Current: 87.260
Low
92.00
Averages
129.47
High
152.50
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.
