Netflix stock analysts are looking past the streaming video leader's modest second-quarter beat and are focused on the company's heavy content release schedule in the back half of 2025.
At least 11 Wall Street analysts raised their price targets on Netflix stock after the company's Q2 report late Thursday.
But, on the stock market today, Netflix stock retreated 5.1% to close at 1,209.24. With the pullback, Netflix stock fell below its 50-day moving average line, a key support level.
"An overall 'good' set of results and guide were not good enough for elevated expectations," William Blair analyst Ralph Schackart said in a client note Friday. He rates Netflix stock as outperform.
Late Thursday, Netflix said it earned $7.19 a share in the June quarter, up 47% year over year, on sales of $11.08 billion, up 16%. Analysts polled by FactSet had expected Netflix to earn $7.07 a share on sales of $11.06 billion.
For the current quarter, Netflix forecast earnings of $6.87 a share, up 27% year over year, on sales of $11.53 billion, up 17%. Wall Street had been looking for Q3 earnings of $6.69 a share on sales of $11.28 billion.
Netflix also raised its 2025 revenue forecast to $45 billion at the midpoint of its outlook. That would translate to growth of 15% from 2024.
On a conference call with analysts, Netflix executives positioned the second quarter as a warmup to the back half of the year, which features a heavy slate of returning hit shows, big movies and marquee live events.
Plus, Netflix is ramping up its advertising business for its lower-cost, ad-supported service tier.
Netflix Stock Is On Two IBD Lists
Jefferies analyst James Heaney on Friday maintained his buy rating on Netflix stock and upped his price target to 1,500 from 1,400.
In a client note, Heaney said Netflix has "an exceptional slate" of content for the second half of the year. That slate includes the final season of "Stranger Things," the second season of "Wednesday" and movies like "Happy Gilmore 2" and a "Knives Out" sequel.
"We expect this to support healthy member growth through the second half of the year," he said.
TD Cowen analyst John Blackledge reiterated his buy rating on Netflix stock and raised his price target to 1,450 from 1,440.
"Netflix should be helped in Q3 by a strong content slate," Blackledge said in a client note.
On a conference call with analysts, Netflix Co-Chief Executive Ted Sarandos said, "We're incredibly excited about the back half of this year and confident that it keeps rolling in 2026."
Netflix's goal is to produce "a steady drumbeat" of shows and films that keep subscribers engaged, Sarandos said. That includes live programming, especially special events, such as the Sept. 13 Canelo Alvarez-Terence Crawford boxing match and two Christmas Day NFL games, he said.
Netflix stock is on two IBD lists: IBD 50 and Leaderboard.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
