Netflix (NASDAQ:NFLX) shares are trading at new 52-week lows after the company’s mixed second-quarter financial results and guidance that came in lighter than forecasts. Analysts break down what the report means and what’s next for the streaming giant.
The Netflix Analysts
- Rosenblatt analyst Barton Crockett maintained a Neutral rating on Netflix and lowered the price target from $95 to $75.
- TD Cowen analyst John Blackledge maintained a Buy rating and lowered the price target from $112 to $100.
- Bank of America Securities analyst Jessica Reif Ehrlich reiterated a Buy rating and lowered the price target from $125 to $105.
Rosenblatt on Netflix
Netflix’s second-quarter results came up light on revenues, Crockett said in a new investor note.
The analyst said Netflix did not have a "great explanation" for revenue slowing down in the third quarter.
"There are reasons why growth would be expected to accelerate. Specifically, the full impact of the March rate hikes in the U.S. won’t be visible in the UCAN segment until 3Q26," Crockett said.
Crockett said the same for the fourth quarter, with full-year guidance narrowing, implying lower revenue growth in the fourth quarter.
"No explanation was given for why this would happen."
The analyst highlighted that engagement was strong in the first half, despite allegations that the streamer was struggling.
TD Cowen on Netflix
Netflix engagement growth in the first half "remained stable," Blackledge said in a new investor report.
The analyst said third-quarter guidance was in line with estimates.
"We expect 3Q revenue to continue to benefit from U.S., Mexico, and Spain price increases, impact from which has been in line with mgmt’s expectation," Blackledge said.
With Netflix stock falling Friday, Blackledge highlights the opportunity for investors.
"The long-term opportunity remains significant, in our view, particularly given NFLX’s multi-year lead in building out a truly global streaming platform."
Bank of America on Netflix
Netflix earnings were strong, but "not strong enough," Ehrlich said in a new investor note.
"At <20x EPS, and a discount to the S&P 500, we believe the stock underappreciates the strategic value of the platform," Ehrlich said.
The analyst said Netflix was a battleground stock ahead of the second quarter, with pressure on slower engagement and slower revenue growth. The results were not enough to change the debate, Ehrlich said.
Ehrlich said concerns on engagement and revenue growth are likely to persist in the near term, but the stock has demonstrated the ability to create shareholder value over time.
"We believe the stock underappreciates the strategic value of a platform reaching more than 300 million subscribers globally and commanding hours of daily engagement in major markets."
The analyst says pressure remains on the stock, with potential acquisition activity that may be received positively or negatively by investors.
"Valuation is compelling."
Ehrlich said Netflix has a "long runway for advertising and live opportunities."
Netflix Stock Price Action
Netflix stock is down 8.8% to $67.82 on Friday versus a 52-week trading range of $65.08 to $127.75. The stock hit new 52-week lows at Friday’s open. Shares are now down 25.5% year-to-date in 2026.
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