NFLX Stock Tumbles As Wall Street Questions Netflix’s Growth Story — What’s Keeping Analysts From Turning More Bullish?

• Wall Street analysts lowered price targets, with concerns centered around slowing growth, engagement trends, content spending returns, and future growth drivers.
• Analysts remain divided on Netflix’s long-term outlook, with some calling the stock undervalued while others say stronger engagement and content performance will be needed to support further upside.
• Retail traders remained bullish despite the selloff, with 32% of Stocktwits poll respondents saying they were buying the dip.

Netflix (NFLX) shares fell nearly 12% on Friday morning after the company’s latest quarterly results prompted several Wall Street analysts to lower their price targets.

At the time of writing on Friday afternoon, Netflix shares had pared some of their losses and were trading about 7% lower. NFLX was also among the top trending tickers on Stocktwits.

On Thursday, Netflix reported second-quarter earnings per share of $0.80, slightly ahead of analysts’ expectations of $0.79. Revenue came in at $12.56 billion, missing the $12.58 billion consensus estimate. The company also narrowed its full-year 2026 revenue forecast to $51 billion to $51.4 billion, compared with its previous outlook of $50.7 billion to $51.7 billion. Analysts expect revenue of $51.38 billion.

Wall Street Trims Expectations

Wolfe Research: Described the quarter as a “murky mosaic” that could prevent the stock from gaining ground as previously expected. Calling the results “a win for the bears, the firm lowered the price target to $84 from $107 while maintaining an ‘Outperform’ rating, reported CNBC. The revised target implies nearly 13% upside from Netflix’s Thursday closing price.

Bank of America: Cut its price target to $105 from $125, implying an upside of 41% from the last close, while maintaining a ‘Buy’ rating. The firm said the second-quarter results were “not strong enough to fundamentally alter the debate” around slowing engagement, decelerating revenue growth, and potential mergers and acquisitions (M&A), according to TheFly.

JPMorgan: Cut its price target to $85 from $118, implying 14% upside from the last close, while maintaining an ‘Overweight’ rating. The firm said the post-earnings selloff reflected concerns around engagement, monetization and returns on content spending.

Citi: Maintained its ‘Buy’ rating and $100 price target, implying about 34% upside. The firm said a weaker third-quarter outlook, unchanged full-year guidance, reduced engagement disclosures, and the buyback size could keep pressure on the stock despite steady engagement growth.

Wells Fargo: Lowered its price target to $80 from $105, implying about 7% upside from Thursday’s close, while maintaining an ‘Equal Weight’ rating. The firm described Netflix as “a maturing story” and said stronger content-led engagement will be needed to support the stock’s valuation.

Bernstein: Lowered its price target to $95 from $100 while maintaining an ‘Outperform’ rating. The revised target implies nearly 28% upside, with the firm saying the recent selloff does not fully reflect Netflix’s medium- to long-term potential.

Morgan Stanley: Lowered its price target to $83 from $90 while maintaining an ‘Overweight’ rating. The revised target implies nearly 12% upside from the stock’s last close. The firm said engagement concerns are overblown, but the latest results are unlikely to settle the growth debate.

Goldman Sachs: Lowered its price target to $94 from $110 while maintaining a ‘Buy’ rating. The revised target implies about 26% upside from Thursday’s close. The firm said first-half engagement met expectations, but the latest results did little to end Wall Street’s debate over engagement and Netflix’s long-term growth strategy.

NFLX Stock: What Stocktwits Retail Sentiment Says

Stocktwits retail sentiment on NFLX was ‘extremely bullish,’ while message volume was 'extremely high’ at the time of writing.

In a Stocktwits poll asking whether traders were buying the dip after Netflix’s post-earnings selloff, 32% of nearly 2,200 respondents said they were buying now. While 21% said they were waiting for a lower entry, 40% said they were staying away.

NFLX shares are down nearly 27% year-to-date.

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