Netflix sinks despite flurry of Wall Street price target hikes
Analysts issued a number of bullish notes on the streaming giant after its second-quarter earnings beat, even as the stock traded lower on margin pressure.
Netflix’s Q2 earnings beat is getting a warm reception from analysts... even if the market doesn’t agree. Shares slipped about 5% on Friday morning after the streaming giant warned that second-half margins would be lower than the first half’s.
Still, the Street rolled out a slew of price target hikes on the stock as analysts leaned into the platform’s ad-tier traction, password crackdown momentum, and engaging content pipeline.
Wells Fargo
Price target: $1,560 from $1,500
Wells Fargo sees Netflix’s strategy clicking: recovering paid sharing revenue, scaling its ad tier, and expanding margins through a “flywheel” of reinvestment into content and tech. Analysts see the platform evolving into a much broader revenue engine.
Morgan Stanley
Price target: $1,500 from $1,450
Netflix remains a top pick at Morgan Stanley, which expects the platform’s new ad technology to nearly double advertising revenue next year. Analysts also see early adoption of generative-AI tools as a competitive edge in both content and product.
Jefferies
Price target: $1,500 from $1,400
Jefferies expects subscriber growth to continue, driven by password-sharing enforcement and steady gains in the ad tier. Longer-term growth is expected to come from price increases and improved monetization, alongside healthy free cash flow margins above 25%.
Piper Sandler
Price target: $1,500 from $1,400
Piper maintained its bullish stance, calling Netflix a defensive name with multiple upside drivers including advertising, higher prices, and a strong slate of content for the second half of the year. The firm also flagged the roughly $1 billion boost to 2025 revenue guidance as a sign of confidence.
UBS
Price target: $1,495 from $1,450
UBS called out Netflix’s widening content mix and investment boost in live programming as key to sustaining engagement. Analysts still expect most revenue growth this year to come from new subscribers. The firm also highlighted Netflix’s expectations that ad revenue will double this year.
JPMorgan
Price target: $1,300 from $1,230
JPMorgan reiterated its neutral stance, noting that Netflix’s 2025 outlook was helped by FX gains. The firm said subscriber additions in Q2 were weighted toward the end of the quarter, driven by strong content like “Squid Game” season 3 and other franchise shows.
