The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 33 | 25.7x | 20.1x | Below average | |
Growth | 51 | 16.7% | 5.6% | Near average | |
Quality | 63 | 35.7% | 7.6% | Near average | |
Safety | 72 | 0.1x | 0.4x | Above average | |
Capital Return | 60 | — | 2.19% | Near average | |
Momentum | 21 | — | — | Below average | |
Sentiment | 53 | — | — | Near average |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
Recent data indicates a gradual decline in analyst optimism toward Netflix stock, as the average price target has decreased by 1.81% over the past 30 days to reach $114.19. This decline was accompanied by 6 analysts dropping coverage, reducing the number of active analysts to 15 and increasing uncertainty regarding the general price consensus.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Netflix, Inc. is the global leader in entertainment and digital streaming, relying on a core business model that offers flexible subscription plans giving users access to a vast library of films, series, and documentaries, in addition to its recent expansion into video games, podcasts, and live sports content. The company generates its revenues primarily from monthly member subscriptions, alongside the rapid growth of its advertising segment through its ad-supported tier that targets a broader segment of consumers globally.
During the first quarter of 2026, Netflix achieved strong financial results, recording revenues of $12.2 billion, with a gross profit of $6.4 billion, and a net income of $5.3 billion, which was reflected in earnings per share (EPS) reaching $1.23. These results demonstrate the continuation of the company's strong operational momentum and its high capability to convert subscriptions into robust cash flows, supported by a target operating margin of 31.5% for the full year 2026.
Automated analysis for informational purposes only — not investment advice.
Netflix stock is currently trading at $85.85, which is significantly below the average price target set by analysts of $114.19, with the forecast range spanning from a low of $96 to a high of $138. The current analyst consensus reflects a 'Buy' recommendation, indicating a strong upside opportunity for the stock based on current market valuations.
Netflix expects to achieve revenue growth for 2026 in the range of 12% to 14%, with a target operating margin of 31.5%. The company also plans to double the size of its advertising business to reach approximately $3 billion during the same year. This outlook relies on the expansion of the subscriber base, which exceeded 325 million paid members by the end of last year.
Co-CEO Theodore Sarandos explained that the Warner Bros. Discovery deal was a 'nice-to-have, not a must-have' for the core business. When the estimated costs of the transaction escalated and exceeded the net value that could accrue to the company and its shareholders, management decided out of investment discipline to abandon the deal. This decision did not affect the target operating margin for 2026 since the costs associated with acquisition activities were within pre-established estimates.
Netflix management confirmed that the changes in Nielsen's methodology for the Gauge report represent an adjustment in how national TV viewing distribution is calculated, rather than a change in actual viewer behavior. The new methodology reduces the weight of streaming-only households and increases the weight of traditional TV, making streaming appear relatively smaller. However, this adjustment did not affect the effectiveness of the company's advertising or its goal of achieving $3 billion in ad revenues this year.
In its fifth year of gaming strategy, Netflix is focusing on four main areas including kids' games, narrative games, party and puzzle games, and general games. The dedicated kids' platform, Netflix Playground, is the latest major step, offering an independent app free of ads and purchases to connect the worlds of beloved shows with interactive games. This strategy aims to enhance subscriber engagement and increase long-term retention rates.
Founder and Chairman Reed Hastings announced his decision not to stand for re-election at the upcoming annual shareholders' meeting in 2026. Hastings will remain in his position as a board member and Chairman until the end of his current term, after which the governance committees will begin restructuring the board. Management confirmed that this decision is unrelated to the Warner Bros. Discovery deal, of which Hastings was one of the biggest supporters, but rather comes as a natural and planned step within the leadership succession process.