With a market cap of $368.4 billion, Netflix, Inc. (NFLX) is a global entertainment company that provides streaming services featuring TV series, documentaries, feature films, games, and live programming across a wide range of genres and languages. It allows members to access content through internet-connected devices such as TVs, mobile phones, digital video players, and set-top boxes.
Shares of the Los Gatos, California-based company have underperformed the broader market over the past 52 weeks. NFLX stock has decreased 23.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 30.6%. In addition, shares of the company are down 6.7% on a YTD basis, compared to SPX’s 8.1% rise.
Moreover, the streaming giant stock has lagged behind the State Street Communication Services Select Sector SPDR ETF’s (XLC) 19.7% gain over the past 52 weeks.
Despite reporting stronger-than-expected Q1 2026 revenue of $12.25 billion and EPS of $1.23 on Apr. 16, shares of Netflix tumbled 9.7% the next day. Investors focused instead on disappointing Q2 2026 guidance, where Netflix forecast weaker-than-expected revenue of $12.57 billion, EPS of $0.78, and operating income of $4.11 billion, reflecting pressure from front-loaded content costs and weaker margin expectations. Sentiment was further impacted after the co-founder announced he would not stand for re-election to the board in June, raising concerns.
For the fiscal year, ending in December 2026, analysts expect Netflix's EPS to surge 42.3% year-over-year to $3.60. The company's earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 49 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 31 “Strong Buy” ratings, five “Moderate Buys,” and 13 “Holds.”
On Apr. 18, Seaport Research increased its price target for Netflix to $119, maintaining a “Buy” rating on the stock.
The mean price target of $115.63 represents a 32.2% premium to NFLX’s current price levels. The Street-high price target of $137 suggests a 56.6% potential upside.
On the date of publication, Sohini Mondal 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.
More news from Barchart
- Ahead of Plug Power Earnings, Here Is What Barchart Options Data Shows for PLUG Stock
- GameStop’s Bid for eBay Isn’t Going Anywhere. Another Buyer Could Swoop In
- Here's How Nvidia Is Quietly Carrying the Entire S&P 500 Rally to Record Highs
- Datadog Stock Is the Latest to Disprove SaaS-Apocalypse Panic. Why Wall Street Loves DDOG Here.
