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 horizon. The stock is currently facing bearish technical indicators, soft Q2 guidance, and a recent 10% drop in price. While the company's financial performance in Q1 2026 was strong, the lack of immediate positive trading signals and balanced congressional trading activity suggest waiting for a clearer entry point.
The technical indicators are bearish. The MACD is negatively expanding (-1.438), RSI is at 27.174 (neutral zone), and moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 93.852), with resistance levels at R1: 106.742 and R2: 110.724.
Q1 2026 financials showed strong growth: Revenue up 16.19% YoY, Net Income up 82.77% YoY, and EPS up 86.36% YoY.
Netflix authorized a $25 billion share buyback program to boost shareholder confidence.
Analysts like Morgan Stanley and JPMorgan recommend buying the dip, citing valuation and growth potential.
Soft Q2 guidance and unchanged full-year outlook led to a 10% drop in stock price.
Bearish technical indicators suggest further downside risk.
Balanced congressional trading data does not indicate strong confidence from influential figures.
In Q1 2026, Netflix reported strong financial performance: Revenue increased by 16.19% YoY to $12.25 billion, Net Income rose by 82.77% YoY to $5.28 billion, and EPS grew by 86.36% YoY to 1.23. Gross Margin also improved to 51.93%, up 3.69% YoY.
Most analysts maintain a Buy or Overweight rating on Netflix, with price targets ranging from $95 to $120. While Q1 results were strong, soft Q2 guidance and tempered outlooks have led to mixed sentiment. Analysts like Morgan Stanley and JPMorgan recommend buying the dip, while others like Rosenblatt remain neutral.
