Netflix Stock: Is Wall Street Bullish or Bearish?
Los Gatos, California-based Netflix, Inc. (NFLX) is a provider of entertainment services. It offers TV series, documentaries, and feature films across various genres and languages. With a market cap of $500.8 billion, Netflix's operations span over 190 countries worldwide.
The entertainment giant has significantly outperformed the broader market over the past year. Over the past 52 weeks, NFLX surged 93% outpacing the S&P 500 Index’s ($SPX) 21.9% gains. In 2025, NFLX is up 32.4% compared to SPX’s 7.8% returns on a YTD basis.
Zooming in further, NFLX has also outperformed the Invesco Next Gen Media And Gaming ETF’s (GGME) 46% returns over the past 52 weeks and 21.6% gains in 2025.
Netflix’s stock prices plunged 5.1% in the trading session following the release of its Q2 results on Jul. 17. Although the company’s Latin America revenues grew by a single-digit figure, its revenues from all other regions surged by healthy double-digit figures. This led to an impressive 15.9% year-over-year growth in total revenues to $11.1 billion; however, this figure fell short of the Street’s expectations by a tiny margin. Meanwhile, its EPS soared 47.3% year-over-year to $7.19, beating the consensus estimates by 1.7%.
Overall, its performance remained more than impressive. However, in Q3 2025, the company expects its operating margins to contract to 31.5%, down from 34.1% observed in Q2, which unsettled investor confidence.
For the full fiscal 2025, ending in December, analysts expect Netflix to report an EPS of $26.06, up 31.4% year-over-year. Furthermore, the company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
The stock has a consensus “Moderate Buy” rating overall. Of the 46 analysts covering the stock, opinions include 28 “Strong Buy,” three “Moderate Buys,” 14 “Holds,” and one “Strong Sell.”
This configuration is slightly less bullish than three months ago, when 29 analysts gave “Strong Buy” recommendations.
On Jul. 21, Baird analyst Vikram Kesavabhotla maintained an “Outperform” rating on NFLX and raised the price target from $1300 to $1500.
NFLX’s mean price target of $1,316.51 represents an 11.5% premium. Meanwhile, the street-high target of $1,600 suggests a 35.6% upside potential.
On the date of publication, Aditya Sarawgi 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.