The New York Times reported earlier Tuesday that the streaming service is considering adding more streamers, like Comcast’s Peacock and Fox One, to its roster.
- Netflix is seeking to compete with Alphabet’s YouTube and Roku to become a one-stop shop for TV content, as per the report.
- Wolfe Research raised the price target on Netflix to $95 from $84 and maintained an ‘Outperform’ rating on the shares.
- According to Koyfin data, the stock has a 12-month average price target of $93.66, implying nearly 14% upside from its last close.
Netflix Inc. (NFLX) could be looking beyond its own content library as it considers hosting rival streaming services on its platform. The reported strategy comes alongside a bullish call from Wolfe Research, which lifted its price target to $95 from $84. NFLX shares closed up nearly 3% on Tuesday, putting it on track to clock a sixth week of gains.
The New York Times reported earlier in the day that the streaming service is considering adding more streamers like Comcast’s (CMCSA) Peacock and Fox One (FOXA) to its roster.
Why Is Netflix Eyeing Other Streaming Services?
Netflix is seeking to compete with Alphabet Inc.’s YouTube (GOOGL) and Roku Inc. (ROKU) to become a one-stop shop for TV content, as per the report, which cited people familiar with the matter.
As per the report, the sources have mentioned that there is no imminent deal to be announced, and that it is not yet clear whether Netflix would absorb the content into its own service, as in the YouTube-Peacock deal, or act more as a retailer in the mold of Amazon Inc.’s (AMZN) Prime Video.
Over the last year, Netflix has repositioned itself from a builder to becoming open to being a buyer, with its pursuit of Warner Bros. Discovery (WBD) a clear signal of its willingness to pursue M&A for growth.
The company’s management has said that the strategy is aimed at expanding its movie-studio business and strengthening its portfolio of franchises and intellectual property as competition in streaming intensified. However, Paramount Skydance (PSKY) ultimately outbid Netflix.
Earlier in March this year, Netflix acquired Budapest-based visual content creation and technology firm Interpositive to bolster its production and post-production capabilities.
NFLX Stock: Wall Street Stance
Wolfe Research raised the price target on Netflix to $95 from $84 and maintained an ‘Outperform’ rating on the shares. The analyst said the timing of new releases is to blame for the company’s “soft” subscriber and engagement in Q2, per TheFly.
Wolfe now expects Netflix to post stronger results in the second half of 2026 results and solid 2027 guidance. New seasons launching in the third quarter had prior seasons generate 1.3 billion hours of viewing in the top 10 versus 765 million of viewing hours in shows launched in Q2, the analyst said in a note.
Netflix posted Q2 results in July, reporting earnings per share of $0.80 on revenue of $12.56 billion. The EPS figures beat Wall Street estimates but revenue came in slightly below expectations.
As per data from Koyfin, the stock has a 12-month average price target of $93.66, which implies an upside of nearly 14% from its last close.
Of the 51 analysts covering the stock, 35 have a ‘Buy’ or higher rating on the stock, while 16 have a ‘Hold’ rating. No analysts have a ‘Sell’ rating on NFLX shares.
What’s Retail Saying About Netflix?
On Stocktwits, retail sentiment around NFLX shares was ‘bearish’ at the time of writing amid ‘normal’ message volumes.
One user noted the price target hike from Wolfe research, calling it “a nice vote of confidence.” The user noted the data shared, especially related to the Q3 viewing expectations, adding that, “Basically, the content slate gets much stronger from here.”
However, another user said, “$PSKY $NFLX just wanted to point out it seems Netflix is scared of the new paramount. The news about letting other streamers onto Netflix and using bonta to do their bidding doesnt look good. Don’t forget Netflix emailed all customers before a deal was closed that they had acquired $WBD very embarrassing looking back on it now. Netflix seems desperate for content and growth they are scrambling trying to compete. PSKY 2027!”
NFLX stock is down more than 9% this year. Meanwhile, PSKY shares have declined more than 19% in the same time, and WBD stock has gained about 1.4%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<