Netflix, Inc. (NFLX), headquartered in Los Gatos, California, operates as a subscription streaming service and production company, delivering entertainment services in approximately 190 countries. Valued at $337.5 billion by market cap, the company offers series, documentaries, feature films, and games across multiple genres and languages.
Shares of this global streaming giant have underperformed the broader market over the past year. NFLX has declined 19.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14%. In 2026, NFLX stock is down 14.5%, compared to SPX’s marginal rise on a YTD basis.
Narrowing the focus, NFLX’s underperformance is also apparent compared to Vanguard Communication Services Index Fund ETF (VOX). The exchange-traded fund has gained about 14.4% over the past year. Moreover, the ETF’s marginal losses on a YTD basis outshine the stock’s double-digit dip over the same time frame.
Netflix's stock is struggling due to its revised Warner Bros. Discovery, Inc. (WBD) deal. The all-cash acquisition could boost content and competitiveness, but faces hurdles like regulatory scrutiny and competition from Paramount Global (PARA). These risks, plus intense streaming competition, are limiting the stock's recovery.
On Jan. 20, NFLX shares closed down marginally after reporting its Q4 results. Its EPS of $0.56 beat Wall Street expectations of $0.55. The company’s revenue was $12.1 billion, surpassing Wall Street forecasts of $12 billion. The company expects full-year revenue in the range of $50.7 billion to $51.7 billion.
For the current fiscal year, ending in December, analysts expect NFLX’s EPS to grow 23.7% to $3.13 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
Among the 44 analysts covering NFLX stock, the consensus is a “Moderate Buy.” That’s based on 26 “Strong Buy” ratings, four “Moderate Buys,” 13 “Holds,” and one “Strong Sell.”
This configuration is more bullish than a month ago, with 25 analysts suggesting a “Strong Buy,” three advising a “Moderate Buy,” and two recommending a “Strong Sell.”
On Jan. 30, Bernstein analyst Laurent Yoon maintained a “Buy” rating on NFLX and set a price target of $115, implying a potential 43.5% upside from current levels.
The mean price target of $113.87 represents a 42.1% premium to NFLX’s current price levels. The Street-high price target of $138 suggests an ambitious upside potential of 72.2%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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