DailyIQ
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Sector:Communication ServicesAll sectors
Last updated 2 minutes ago

NFLX·Netflix, Inc.

$.
-. (-.%)
After Hours
High
$88.76
Open
$88.40
Market Cap
373.08B
52W High
$134.12
Low
$87.25
P. Close
$87.69
P/E
27.90
52W Low
$75.01
Fwd P/E
22.82
Mean Target
-
Technical Score (1D)
41
SELL
News Sentiment
47
MIXED
Netflix's investment narrative is evolving with analysts revising price targets slightly upward, factoring in the growing advertising tier opportunity and strategic content decisions. Bank of America reiterated a "Buy" rating with a $125 price objective, citing strong growth in the advertising business which has surpassed 250 million monthly viewers globally. JPMorgan also maintained an Overweight rating and $118 price target, highlighting progress in the advertising strategy and content as key drivers for Netflix's ambition to become "Global TV." This positive sentiment around the ad business is contrasted by significant negative social media reaction to Netflix's investment in an AI animation studio, raising concerns about audience acceptance of generative AI content. The company is also strategically incorporating live sports content, which fueled record subscriber growth in Japan, though this increased investment is expected to pressure near-term profit margins. Further diversification efforts include launching its first daily live show, "The Breakfast Club," and expanding consumer engagement through merchandise partnerships with Moose Toys and Ferrero. These initiatives aim to deepen audience connection and explore new revenue streams beyond traditional on-demand streaming. Meanwhile, Netflix faces a lawsuit from Texas alleging non-consensual data collection and addictive platform design, which the company disputes. Institutional investors are actively adjusting their positions, with Guinness Asset Management dramatically increasing its holdings by nearly 900% in the fourth quarter. Looking ahead, investors will be watching the continued build-out of the advertising business, the reception of new content formats like live shows and AI-generated content, and the outcome of the Texas lawsuit.
Earnings Summary
Netflix is a global entertainment provider specializing in streaming video content, offering a vast library of series, films, and documentaries across approximately 190 countries. Operating in the Communication Services sector within the Entertainment industry, Netflix delivers its services via internet-connected devices to a broad international subscriber base. Recent quarterly performance shows a pattern of EPS beats and revenue growth. In Q1 2026, Netflix reported actual EPS of $1.23 against an estimate of $0.84225, with revenue at $12.24976 billion against an estimate of $12.62739376 billion. This follows Q4 2025, where actual EPS was $0.56 against an estimate of $0.5628, and revenue was $12.05076 billion against an estimate of $12.208466363 billion. Prior to this, Q3 2025 saw actual EPS of $0.587 against an estimate of $0.69707, and Q2 2025 reported actual EPS of $0.719 against an estimate of $0.70326. The company has demonstrated a consistent ability to beat EPS estimates in recent periods, particularly in Q1 2026, and has shown strong revenue growth trends, with Q1 2025 revenue at $10.542801 billion against an estimate of null. Historically, Netflix has exhibited a strong revenue growth trajectory, often exceeding analyst expectations, and has a track record of significant EPS beats, especially in its most recent reported quarters. Recent news indicates a strategic shift towards bolstering its advertising business and AI-driven content initiatives, alongside expansion into consumer products like candy and toys, aiming to diversify revenue streams beyond subscriptions. The company is also reportedly expanding into live sports broadcasting, including additional NFL games. Analysts maintain optimistic price targets, citing accelerating earnings growth, a strong ad-supported business, and healthy user engagement, though some have noted a valuation reset and potential slowdown concerns. Investors will be watching for confirmation of sustained operating margins and ad revenue growth in upcoming earnings reports.

EPS

EstBeatMiss
$0.46$0.68$0.90$1.11$1.33Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$0.79 - -
Q1'26$0.84$1.23+46.0%
Q4'25$0.56$0.56-0.5%
Q3'25$0.70$0.59-15.8%
Q2'25$0.70$0.72+2.2%
Q1'25$0.57$0.66+16.8%

Revenue

EstBeatMiss
$10.2B$10.9B$11.7B$12.4B$13.2BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$12.8B - -
Q1'26$12.6B$12.2B-3.0%
Q4'25$12.2B$12.1B-1.3%
Q3'25 - $11.5B -
Q2'25 - $11.1B -
Q1'25 - $10.5B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

NFLX Stock Snapshot

NFLX is currently trading at $87.50, giving Netflix, Inc. a market cap of 373.08B and a P/E ratio of 27.9. Today's range spans $87.25–$88.76, with shares opening at $88.40 and moving down $0.19 (0.2%) from the prior close. DailyIQ's technical score sits at 41/100 (HOLD) with a news sentiment reading of 47/100.

Over the past year NFLX has traded between $75.01 and $134.12 - the current price is +16.7% off the 52-week low and -34.8% from the high.

Sector rotation context matters for NFLX's HOLD phase (41/100, HOLD): in Communication Services, large-cap names (373.08B market cap) with neutral technicals and neutral sentiment (47/100) are often in a staging area ahead of a rotation trade. The current P/E ratio stands at 27.9. Price: $87.50 (in the lower half of its 52-week range in $75.01–$134.12). When sector flows resume, names that consolidated cleanly rather than correcting sharply tend to lead the next leg - and NFLX's current setup fits that pattern.

In neutral phases, large-cap Communication Services names like NFLX are often where sector rotation debates play out quietly — at 373.08B in capitalization, the stock receives incremental allocation from funds reducing mega-cap exposure without the volatility of a small-cap entry. The 41/100 (HOLD) and neutral sentiment (47/100) at $87.50 (in the lower half of its 52-week range) describe a stock that is being considered rather than avoided.