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 | Rank |
|---|---|---|---|---|---|
Valuation | 42 | 21.1x | 20.8x | Around median | |
Growth | 78 | 16.0% | 6.1% | Top tier | |
Quality | 84 | 35.7% | 6.6% | Top tier | |
Safety | 84 | 0.4x | 0.7x | Top tier | |
Capital Return | 65 | — | 2.02% | Around median | |
Momentum | 6 | -37.5% | 4.1% | Bottom tier | |
Sentiment | 44 | 33 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
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 is a leading global entertainment streaming company, generating its revenue primarily through member subscriptions which exceeded 325 million subscribers by the end of 2025, alongside rapid expansion in the advertising and gaming sectors. The company offers a massive library of original and licensed content, and invests heavily in live sports events and podcasts to attract new audience segments. Recently, the company added generative AI technologies through its acquisition of Interpositive to enhance film production efficiency, and acquired Radford Studios to increase in-house production and reduce costs.
In the first quarter of fiscal year 2026, Netflix recorded strong financial performance, with revenues reaching $12.2 billion, a gross profit of $6.4 billion, and a net income of $5.3 billion, equating to earnings per share of $1.23. Management maintained its guidance for organic revenue growth for 2026 between 12% and 14%, with an operating margin of 31.5%, expecting the advertising business to double to approximately $3 billion driven by advertiser base growth and the adoption of programmatic advertising technologies.
Netflix stock currently trades at a valuation that investors are watching cautiously amid sector pressures, although it remains supported by consensus buy recommendations from analysts. The average analyst price target is $108.24, with a high estimate of $135 and a low estimate of $85, indicating Wall Street's optimism regarding the company's ability to achieve sustainable growth in revenues and profit margins and surpass current valuations.
Figures in the text are as of 2026-07-16; the live price is shown at the top of the page.
Netflix withdrew from the acquisition deal for Warner Bros. assets after management determined that the costs exceeded the desired value for shareholders, proving its financial discipline. However, the company still incurs merger and acquisition-related expenses of approximately $275 million for 2026. Abandoning the deal initially led to stock volatility, but it later surged on July 8, 2026, after markets welcomed this strategic decision.
Netflix aims to double its advertising revenues to reach approximately $3 billion in 2026. The advertiser base has grown by more than 70% year-over-year to exceed 4,000 advertisers by the end of 2025. Management expects programmatic advertising to account for more than 50% of the indirect advertising business, which enhances monetization efficiency and attracts a broader segment of brands.
Netflix recently acquired Interpositive, a company specializing in generative AI technologies tailored for filmmakers. Through this acquisition, the company aims to provide advanced tools for creators to improve scene planning and visual effects, thereby enhancing production efficiency and set safety. The company also uses artificial intelligence to improve recommendation algorithms and personalize ads for subscribers to increase engagement.
Automated analysis for informational purposes only — not investment advice.
Yes, the company has achieved significant success in live sports broadcasting, where the World Baseball Classic attracted 31.4 million viewers and achieved the largest subscription day in Japan. The company is also expanding into gaming through the Netflix Playground app dedicated to children, which features beloved characters like Peppa Pig. Additionally, management is investing in podcasts to increase daily mobile engagement during daytime hours.
Netflix stock faced selling pressure in mid-July 2026 after management lowered the margin expectations ceiling for the second quarter. This coincided with broader challenges in the streaming sector and a drop in the company's valuation to its lowest levels in four years on July 12. Furthermore, insider selling activity, with net sales reaching $82.1 million over three months, increased market caution towards the stock.