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Netflix Stock Sinks Most In Six Months - Analyst Says Buy, It's 'Just A Wobble'

Netflix Stock Sinks Most In Six Months - Analyst Says Buy, It's 'Just A Wobble'

Benzinga 3 weeks ago

Shares of streaming giant Netflix Inc(NASDAQ:NFLX) fell after the company reported first-quarter financial results and guidance Thursday.

Rosenblatt

In a new investor note, Crockett said second-quarter guidance is "slight downside" from Netflix, but comes with full-year guidance reiterated.

"So maybe this is just a wobble that everyone should ignore," Crockett said.

The analyst said a 10% drop in Netflix's share price signals investors fear the worst and are likely reacting negatively to news that co-founder Reed Hastings is exiting the company.

"Our base case remains: Netflix, we believe, is a strong company - growing Adj. EBITDA at a 24% CAGR 2025A-2027E, and revenues at a 15% CAGR - but one that is maturing."

Crockett highlighted the company's guidance for full-year advertising revenue doubling year-over-year along with record engagement hit in 2025 and the first quarter.

Guggenheim

Netflix beating analyst estimates and maintaining full-year guidance was not enough for investors, Morris said in a new investor note.

"Management has high conviction that the business can maintain its leadership position and at only 5% of global TV share and <45% broadband household penetration has a long growth runway ahead," Morris said.

The analyst said engagement trends "remained healthy" in the first quarter.

Morris highlighted Netflix seeing record paid net additions for Japan thanks to its rights to stream the World Baseball Classic, an example of what live sports can mean for the company's growth.

Needham

Netflix launching new mobile engagement products like vertical video, video podcasts and kids games could be keys to increase prices and limit churn going forward, Martin said in a new investor note.

"Managing fandoms is what YouTube influencers do best and is, therefore, every media company's 'job to be done,' we believe. In old media, NFLX does this best," Martin said.

The analyst said Netflix has a history of being an early adopter in new technology, which could pay off for its increased engagement figures in the quarter.

"Monetization follows time spent, we believe."

Martin said Netflix stock is a buy on weakness.

JPMorgan

A price increase from Netflix is already factored into the company's full-year revenue outlook, Anmuth said in a new investor note.

"We understand that some will be disappointed with no increase to the 2026 outlook on either the top or bottom line, despite 1Q upside," Anmuth said.

The analyst said Netflix is executing well and has "considerable growth headroom."

"We'd buy weakness."

Price Action: NFLX is down 9.3%, heading for the biggest one-day loss since Oct. 22

Netflix has a 52-week trading range of $75.01 to $134.12. Its stock is now down 0.8% over the last 52 weeks, with shares up 6% year-to-date in 2026.

Image via Shutterstock

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