Netflix Stock Down 41% in a Year as Analysts See 37% Upside

EarningsAnalyst
โดย The Motley Fool·Read original
Summary · why it matters

Netflix shares have fallen 41% over the past 12 months and 26% year-to-date in 2026, but Wall Street analysts see a potential rebound with a median price target implying about 37% upside. The sell-off was partly driven by investor concerns over a failed bid to acquire Warner Bros. Discovery, which was ultimately won by Paramount Skydance. Revenue growth has decelerated to 13% year-over-year in the second quarter, with third-quarter guidance of $13 billion representing 12% growth, while the full-year 2026 revenue forecast was narrowed to a range of $51 billion to $51.4 billion. Operating margins have improved to 33% in Q2, and the company expects to double ad revenue to $3 billion in 2026, with free cash flow projected at $12.5 billion. The stock now trades at 21 times earnings, its lowest P/E ratio in four years, and 68% of analysts rate it a buy.

Impact on stocks 4

Communication Services± Mixed · 3 stocks
Netflix Inc
NFLX
▲ PositiveCapitalrelevance

Analysts see 37% upside, low P/E, and buy ratings; revenue and margin guidance are solid.

Warner Bros Discovery Inc
WBD
▼ NegativeCompetitionrelevance

Warner Bros. Discovery was acquired by Paramount Skydance, not Netflix, implying a competitive loss.

Artificial Intelligence▲ · 1 stocks
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