Netflix Inc. (NASDAQ: NFLX) analysts say they don't think the company's third-quarter results, which missed estimates, warrant too much concern. Analysts highlight the company's advertising growth as the key catalyst for its future success.
NFLX is feeling the pressure from bearish momentum. Check the analyst’s take here.
The Netflix Analysts: Wedbush analyst Alicia Reese reiterated an Outperform rating on Netflix and lowered the price target from $1,500 to $1,400.
JPMorgan analyst Doug Anmuth maintained a Neutral rating and lowered the price target from $1,300 to $1,275.
Goldman Sachs analyst Eric Sheridan maintained a Neutral rating with a price target of $1,300.
Bank of America Securities analyst Jessica Reif Ehrlich reiterated a Buy rating with a price target of $1,490.
Morgan Stanley analyst Benjamin Swinburne reiterated an Overweight rating with a price target of $1,500.
Guggenheim analyst Michael Morris maintained a Buy rating with a price target of $1,450.
Canaccord Genuity analyst Maria Ripps maintained a Buy rating with a price target of $1,525.
Wedbush on NFLX: The streaming giant's third-quarter results and fourth-quarter guidance were underwhelming to investors, Reese said in a new investor note.
The analyst said the results were "not picture perfect," but Netflix has a "compelling" growth story.
"We think Netflix is positioning for substantial growth in global advertising, and that should not be overlooked," Reese said.
The analyst stated that Netflix's ad growth will become the company's primary revenue driver starting in 2026.
Reese said the company must demonstrate advertising growth to justify a high multiple.
JPMorgan on NFLX: Third-quarter results and guidance were "solid," but didn't have as much upside as recent quarters from the streaming company, Anmuth said in a new investor note.
"We believe the bigger focus is on the lack of revenue upside in the back half," Anmuth said. "We believe ad revenue is tracking a bit ahead of expectations."
The analyst said another key focus area is M&A. While Netflix stated that it prefers to be a builder rather than a buyer, Anmuth noted that the media landscape is changing and that Netflix could strengthen its IP and entertainment offerings through strategic deals.
Goldman Sachs on NFLX: Sheridan said Netflix's lack of detailed guidance for 2026 was a potential negative. The analyst expects the company to have rising engagement, revenue growth and live events growth moving forward.
"Any concerns around the platform that could impact share performance will remain more focused on engagement trends relative to competitors within the short/medium form content landscape," Sheridan said.
The analyst said Netflix has room to expand operating margins and should be a double-digit revenue grower in the future.
Bank of America on NFLX: A lack of 2026 guidance is likely not a change in underlying fundamentals for the streaming company, Ehrlich said in a new investor note.
"Advertising is expected to more than double in '25, engagement growth picked up and the pricing backdrop is constructive," Ehrlich said.
Ehrich said Netflix didn't rule out non-linear network M&A, which could mean the company is looking at buying IP that can strengthen its entertainment offerings.
"Supported by its world-class brand, leading global subscriber scale, position as an innovator and increased visibility in growth drivers, we believe that Netflix will continue to outperform."
Morgan Stanley on NFLX: Healthy growth from subscriber gains and pricing changes were expected in the third quarter, Swinburne said in a new investor note.
"Advertising momentum continues to build," Swinburne said. He added that Netflix's engagement trends are improving.
With Netflix shares down in after-hours trading on Tuesday, the analyst said investors were expecting more upside, given a strong third-quarter content slate.
"Advertising trends are a clear highlights and there are growing proof points that Netflix is set to build this into a multi-billion dollar growth driver."
Guggenheim on NFLX: The streaming company made "steady progress" in the third quarter, Morris said in a new investor note.
The analyst said Netflix has "irons in the fire" for additional growth ahead.
"Management emphasized a primary focus on organic growth," Morris said. The analyst added that Netflix is likely to continue to report membership growth, pricing growth and increased advertising revenue.
Canaccord on NFLX: The streaming company's record engagement and advertising growth were key in the quarterly results for Ripps.
"Netflix benefited from a notably strong content slate in Q3, with the company achieving its highest-ever quarterly view share in the US and UK," Ripps said.
The analyst said Netflix's fourth-quarter guidance was "relatively solid" and the share declines could be an overreaction. "While the stock continues to trade at a premium valuation, we see today's pullback as a buying opportunity, given record engagement, accelerating advertising momentum, and ongoing underlying margin expansion."
NFLX Price Action: Netflix stock is down 10.1% to $1,115.69 on Wednesday, compared to a 52-week trading range of $744.34 to $1,341.15. Netflix stock is up 25.8% year-to-date in 2025.
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