Apart from the outlook and subscriber numbers, analysts also pointed to Netflix’s revenue coming in at higher costs, while the company is also facing margin pressures.
- Analysts at TD Cowen lowered their price target for Netflix to $112 from $115, while keeping a ‘Buy’ rating on the stock, noting that the streaming giant’s Q1 outlook missed estimates.
- Netflix has forecast $12.16 billion in Q1 revenue, missing the consensus estimate of $12.17 billion by a whisker.
- Its earnings per share guidance of $0.76 was also lower than Wall Street’s expectations of an EPS of $0.81.
Netflix Inc. (NFLX) shares declined nearly 7% in Wednesday’s pre-market after the company’s outlook for the first quarter (Q1) of fiscal year 2026 missed Wall Street estimates.
According to TheFly, multiple firms lowered their price targets for the NFLX stock on Wednesday. Apart from the outlook and subscriber numbers, analysts also pointed to Netflix’s revenue coming in at higher costs, while the company is also facing margin pressures.
What Are Analysts Saying
Analysts at TD Cowen lowered their price target for Netflix to $112 from $115, while keeping a ‘Buy’ rating on the stock, noting that the streaming giant’s Q1 outlook missed estimates.
Netflix has forecast Q1 revenue of $12.16 billion, missing the consensus estimate of $12.17 billion by a whisker. Its earnings per share (EPS) guidance of $0.76 was also lower than Wall Street’s expectations of an EPS of $0.81.
Wolfe Research analysts lowered the price target for Netflix to $95 from $121, while maintaining an ‘Outperform’ rating. The firm highlighted that Netflix’s acquisition of Warner Bros. Discovery Inc. (WBD) has inflamed concerns about the company’s expense outlook.
Analysts at Goldman Sachs joined in, lowering their price target for Netflix to $100 from $112, noting that greater clarity on regulatory approval of the WBD acquisition, competitive dynamics, and pro forma operating details is needed for a multiple re-rating.
Netflix and Warner Bros. Discovery on Tuesday announced a revised agreement, changing the deal from a cash-and-stock proposal to an all-cash one. The new agreement offers WBD shareholders $27.75 per share in cash.
Here’s How Stocktwits Users Reacted
Retail sentiment on Stocktwits around Netflix was in the ‘extremely bullish’ territory, while message volume was at ‘extremely high’ levels. Netflix was the top trending ticker on Stocktwits at the time of writing.
One bullish user on the platform stated that the WBD acquisition is a long-term play, while adding that it will bring in more revenue for the company.
However, one user criticized the company’s acquisition of WBD while slamming Netflix’s decision to cancel buybacks to shore up funds for the deal.
NFLX stock is down 7% year-to-date, but up 2% over the past 12 months.
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