Netflix Stock Edges Lower After JPMorgan Downgrade Despite Higher Price Target

Netflix’s (NFLX) stock edged 0.8% lower in morning trade on Monday after JPMorgan downgraded the shares to ‘Neutral’ from ‘Overweight’ but raised its price target to $1,220 from $1,150.

In a note to clients cited by TheFly, the brokerage said it remains bullish on Netflix's long-term leadership in streaming and its potential to become a global TV platform. However, it noted that after the recent stock rally and strong performance, the risk-reward ratio appears more balanced in the near term. 

Netflix shares reached an all-time high of $1,196.50 on Friday and are already trading above the average analyst price target of $1,116.69, according to Koyfin.

With shares at record highs, JPMorgan believes much of the expected 2025 upside is already priced in. If macro and tariff concerns continue to ease, the brokerage anticipates that investors may rotate into other internet stocks that have lagged during the recent rally. 

TD Cowen also raised its price target on Netflix’s stock on Monday to $1,325, up from $1,150, with a ‘Buy’ rating, citing that the company’s monthly average users (MAUs) were sharply higher compared to 2024. 

Among the 50 analysts covering Netflix, 33 maintain a ‘Buy’ or equivalent rating, 16 rate it a ‘Hold,’ and one remains bearish with a ‘Sell’ call, according to Koyfin.

Also on Monday, Netflix announced that new episodes of ‘Sesame Street’ will debut on the platform, along with its full library of past episodes. 

According to Sesame Workshop, the nonprofit behind the show, the new episodes will be available on the same day on PBS stations and PBS Kids in the U.S.

Neflix’s stock has gained over 32% this year, and is up by more than 90% over the past 12 months. 

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