Buy NFLX Stock Dip? Wall Street Analysts Stay Bullish While Cathie Wood’s Ark Piles In After Post-Earnings Slide

• Morgan Stanley, JPM, and Needham, among others, reiterated their ‘buy’ view.
• The "valuation (is) compelling for a compounder with pricing power," said Morgan Stanley.
• Stocktwits sentiment for NFLX remained ‘extremely bullish’ since the quarterly report last Thursday.

Cathie Wood’s Ark Next Generation Internet ETF (ARKW) snapped up roughly $2.5 million worth of Netflix shares, alongside buy calls from retail investors, after the streaming giant’s soft forecast sent the stock to its steepest drop in over five months on Friday.

Major analysts, too, were advising a buy-the-dip: Morgan Stanley, JPM, and Needham, among others, reiterated their ‘buy’ view, citing Netflix’s dominant position and gains from price hikes. Some, however, trimmed their price targets.

Analysts Say Buy NFLX Dip

While the second-quarter guidance and lack of a raise in the 2026 view drove shares lower, Morgan Stanley said these were explained by the timing of U.S. price hikes and some conservatism early in the year. However, the "valuation (is) compelling for a compounder with pricing power," the research firm said, while reiterating its ‘Overweight’ rating and $115 price target. The level implies an 18% upside to the stock's last close.

Netflix increased prices for U.S. subscribers last month, a second time in a little over a year.

JPMorgan said Netflix "continues to execute well, with considerable growth headroom" and recommended buying the dip. It, too, kept its ‘Overweight’ rating and $118 price target.  

Meanwhile, Piper Sandler raised its target on Netflix to $115 from $103, also keeping its ‘Overweight’ rating. While results weren't flashy, Netflix appears refocused on the core, with some adjacent initiatives, like ads, growing well, the brokerage said.

However, Barclays lowered its price target to $110 from $115 and kept an ‘Equal Weight’ rating. The earnings stock reaction "points to the risk with expectations set up which may persist beyond the short term," it said.

NFLX Stock Move, Earnings Recap

Netflix shares have gained sharply since late February, when the company decided not to raise its offer for Warner Bros. Discovery, effectively surrendering the deal to rival bidder Paramount Skydance. Investors have been mostly positive about its decision, sending shares up about 40% since that time.
 

NFLX shares tumbled nearly 10% on Friday, after its first-quarter earnings report. Sales increased 16% to $12.25 billion, and adjusted profit increased to $1.23 per share from $0.66  per share, beating analysts’ target on both counts. However, second-quarter forecasts – EPS of $0.78 on revenue of $12.57 billion – were below market expectations, while unchanged 2026 guidance and the departure of co-founder Reed Hastings from Netflix's board, weighed on sentiment.

Load Up On NFLX, Retail Signals

On Stocktwits, the retail sentiment for NFLX remained ‘extremely bullish,’ unchanged since right after the Thursday post-market earnings report. Message volume for the ticker rose 21% in the past seven days.

“$NFLX I think Netflix will have momentum going into actual market open Monday,” a user said, while cautioning that broader markets could face pressure as attacks on ships in the Strait of Hormuz fuel concerns of a prolonged Middle East conflict.

“I hold 10,000+ shares and counting since $75 and I won’t leave,” wrote a user. “By the time people realize the ad revenue is going to be an absolute money maker it will be too late. This is a $150 stock by the end of 2027. If they execute with perfection grow subs, raise prices with low churn, I think a high side could be $180 by the end of 2027.”

Several traders said they were expanding their positions in Netflix and predicted $100 to $110 levels this week. 

Analysts were in close sync. Currently, 38 of 52 analysts rate the stock ‘Buy’ or higher, 12 rate it ‘Hold,’ and one rates it ‘Strong Sell,’ according to Koyfin. Their average price target of $114.46 implies an 18% upside from the stock’s last close.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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