Los Gatos, California-based Netflix, Inc. (NFLX) provides entertainment services worldwide, offering television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. Valued at a market cap of $257.4 billion, the company also provides members with the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
Netflix’s shares have lagged behind the broader market over the past year, declining 45.4% compared to the S&P 500 Index’s ($SPX) 10.8% surge. Moreover, in 2026, the stock has fallen nearly 32.7%, underperforming the SPX’s 10.9% rise as well.
Zooming in, the State Street Communication Services Select Sector SPDR ETF (XLC) has declined 3.1% over the past year, outpacing the stock. In 2026, XLC has fallen 7.8% and has also outperformed the stock.
On Oct. 21, NFLX stock fell 5.3% following the release of its mixed Q3 2026 earnings. The company’s revenue for the period came in at $12.9 billion, in line with the Street’s estimates. Moreover, its adjusted EPS amounted to $0.87, surpassing Wall Street’s forecasts. However, the company’s guided fourth-quarter revenue and EPS came in at $13.4 billion and $0.67 at the midpoint, respectively, missing the consensus estimates. NFLX also cut its 2026 advertising revenue outlook from $3 billion to $2.7 billion due to slower rollouts of advertising capabilities.
For the current year, which ends in December, analysts expect NFLX’s EPS to rise 41.9% to $3.59 on a diluted basis. The company has surpassed the consensus estimate in three of the last four quarters, while missing on one occasion.
Among the 50 analysts covering NFLX stock, the consensus is a “Moderate Buy.” That’s based on 29 “Strong Buy” ratings, four “Moderate Buys,” 15 “Holds,” and two “Strong Sells.”
The configuration has grown bearish over the past month, with the stock now having 29 “Strong Buy” ratings, compared to 31 a month ago.
On Oct. 23, TD Cowen analyst John Blackledge maintained a “Buy” rating on Netflix and set a price target of $100.
NFLX’s mean price target of $86.49 indicates a premium of 38% from the current market price. Its Street-high target of $125 implies a robust 99.4% upside from current levels.
On the date of publication, Aritra Gangopadhyay did not directly have a position 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.