Rothschild & Co Redburn Issues Pessimistic Forecast for Netflix (NASDAQ:NFLX) Stock Price

Netflix (NASDAQ:NFLX) had its target price cut by Rothschild & Co Redburn from $145.00 to $120.00 in a research note issued on Wednesday, MarketBeat reports. The firm presently has a “buy” rating on the Internet television network’s stock. Rothschild & Co Redburn’s price objective indicates a potential upside of 43.64% from the stock’s previous close.

Several other research firms also recently commented on NFLX. TD Cowen restated a “buy” rating on shares of Netflix in a report on Tuesday, January 13th. Morgan Stanley set a $110.00 price target on shares of Netflix and gave the company an “overweight” rating in a research report on Wednesday. Canaccord Genuity Group set a $125.00 price objective on shares of Netflix and gave the stock a “buy” rating in a report on Wednesday. Itau BBA Securities assumed coverage on shares of Netflix in a research note on Tuesday, October 7th. They issued an “outperform” rating and a $151.40 price objective on the stock. Finally, BMO Capital Markets reduced their price objective on shares of Netflix from $143.00 to $135.00 and set an “outperform” rating for the company in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Netflix has an average rating of “Moderate Buy” and an average target price of $119.36.

Netflix Price Performance

Shares of NASDAQ NFLX opened at $83.54 on Wednesday. The firm has a market capitalization of $353.99 billion, a P/E ratio of 33.06 and a beta of 1.71. The firm’s 50-day moving average price is $96.70 and its 200-day moving average price is $111.60. The company has a current ratio of 1.19, a quick ratio of 1.33 and a debt-to-equity ratio of 0.51. Netflix has a 1-year low of $81.93 and a 1-year high of $134.12.

Netflix (NASDAQ:NFLX) last issued its earnings results on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, beating the consensus estimate of $0.55 by $0.01. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The company had revenue of $12.05 billion during the quarter, compared to the consensus estimate of $11.97 billion. During the same period last year, the business posted $0.43 EPS. The firm’s revenue for the quarter was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Equities research analysts anticipate that Netflix will post 24.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Bradford L. Smith sold 31,790 shares of the business’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $88.86, for a total value of $2,824,859.40. Following the transaction, the director directly owned 79,690 shares of the company’s stock, valued at approximately $7,081,253.40. The trade was a 28.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Spencer Adam Neumann sold 23,600 shares of the stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $109.76, for a total transaction of $2,590,241.60. Following the transaction, the chief financial officer owned 39,310 shares of the company’s stock, valued at approximately $4,314,508.36. The trade was a 37.51% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 1,653,599 shares of company stock valued at $173,141,263. 1.37% of the stock is currently owned by insiders.

Institutional Trading of Netflix

Several hedge funds have recently added to or reduced their stakes in NFLX. First Financial Corp IN lifted its position in shares of Netflix by 900.0% during the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock valued at $25,000 after buying an additional 243 shares during the last quarter. DiNuzzo Private Wealth Inc. raised its stake in Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 239 shares during the period. Imprint Wealth LLC purchased a new stake in Netflix during the third quarter valued at about $25,000. Retirement Wealth Solutions LLC bought a new position in Netflix during the third quarter worth about $28,000. Finally, MB Levis & Associates LLC increased its stake in shares of Netflix by 177.8% in the fourth quarter. MB Levis & Associates LLC now owns 300 shares of the Internet television network’s stock worth $28,000 after purchasing an additional 192 shares in the last quarter. Institutional investors own 80.93% of the company’s stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q4 beat and subscriber momentum — Netflix narrowly beat estimates for Q4 revenue and EPS and highlighted strong content (e.g., “Stranger Things”) driving engagement. Helped by ‘Stranger Things’ finale, Netflix lands strong fourth quarter
• Positive Sentiment: Scale: ~325 million paid subscribers — reinforces Netflix’s dominant user base and revenue runway. 325 Million Reasons to Buy Netflix Stock Today
• Positive Sentiment: Ad business is ramping — management said advertising revenue is material and growing, improving monetization beyond subscriptions. Netflix’s advertising strategy shift is starting to pay off
• Neutral Sentiment: All‑cash WBD bid — Netflix amended its offer to all cash (same headline price), which removes share‑swap uncertainty but concentrates the financing burden on Netflix. Netflix Just Upped Its Bid for Warner Bros. to All Cash
• Neutral Sentiment: Regulatory and process uncertainty — EU antitrust review and an active competing bid from Paramount raise the odds of a prolonged, uncertain outcome. EU to weigh Netflix, Paramount bids for Warner Bros at the same time
• Neutral Sentiment: Senate hearing on the WBD deal — co‑CEO Ted Sarandos is set to testify, adding political/regulatory visibility to the transaction. Netflix’s Sarandos to testify in Senate hearing on Warner deal
• Negative Sentiment: Softer near‑term guidance — Q1/2026 guidance came in below some Street expectations, which triggered the post‑earnings selloff despite the quarter’s beat. Netflix’s stock remains under pressure as investors balk at forecast and Warner Bros. acquisition
• Negative Sentiment: Buyback pause and added debt — Netflix paused share repurchases to preserve cash for the WBD offer and has arranged incremental debt, reducing near‑term shareholder returns and increasing leverage. Netflix Craters On Disappointing Guidance, Stock Buyback Pause
• Negative Sentiment: Margin pressure and higher content spend — Netflix plans to lift program spending, which could compress margins in 2026 even if it supports engagement. Netflix to boost program spending in 2026
• Negative Sentiment: Analyst target trims and insider selling — multiple firms trimmed targets after the print and insiders have been net sellers, adding to negative sentiment around valuation and capital allocation. These Analysts Slash Their Forecasts On Netflix Following Q4 Earnings

About Netflix

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.