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Netflix Price Prediction: Where the Stock Goes After a Year of Doubts
24/7 Wall St. • • business
Key Points:
- 24/7 Wall St. sets a 12-month price target for Netflix at $78.99, implying a 17.7% upside from the current $67.13 share price, and rates the stock as a buy with 90% confidence.
- Despite a nearly 46% drop over the past year and recent earnings that beat estimates, Netflix shares declined due to lowered 2026 ad revenue guidance and concerns about U.S. execution.
- Bulls highlight strong revenue growth, expanding margins, aggressive share buybacks, and international ad tier expansion as drivers toward a potential $112.90 price target.
- Bears point to slower-than-desired growth in view hours, a lowered free cash flow forecast for 2026, and reduced operating margin guidance as risks that could cap upside near $72.86.
- Netflix’s valuation, with a P/E of 25x and operating margin of 29.49%, positions it between Disney and Spotify, supporting the view that the current price target is reasonable and possibly conservative.
