1 hour ago
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Vandita Jadeja
Tue, May 19, 2026 astatine 9:58 AM CDT 4 min read
Quick Read
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Netflix (NFLX) collected a $2.80B termination interest from walking distant from a Warner Bros. deal, raised escaped currency travel guidance to $12.5B for 2026, and doubled its advertizing concern people to $3B, yet shares commercialized astatine $89.65 aft falling 24.76% implicit the past twelvemonth owed to Q1 EPS of $1.23 missing estimates by 8.55%.
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Netflix shares stay depressed contempt beardown fundamentals due to the fact that expert estimates anchor connected trailing net alternatively than guardant EPS of $18.03, which reflects advertizing standard and 31.5% planned operating borderline enlargement from an progressively profitable streaming model.
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The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Netflix wasn't 1 of them. Get them present FREE.
Netflix (NASDAQ:NFLX) conscionable walked distant from a Warner Bros. woody with a $2.80 cardinal termination interest successful its pocket, raised escaped currency travel guidance to astir $12.5 cardinal for 2026, and doubled its advertizing concern toward $3 billion. So wherefore are shares down 4.38% twelvemonth to day and 24.76% disconnected wherever they sat a twelvemonth ago? Can this streamer signifier a comeback to $350 by 2027?
Why Netflix Shares Are Stuck Despite Record Cash Flow
Netflix delivered Q1 gross of $12.25 billion, up 16.2% YoY, with escaped currency travel surging 91.44%. Yet shares commercialized astatine $89.65, down 7.87% implicit the past month.
Three factors measurement connected the stock. Q1 EPS of $1.23 missed the $1.345 estimation by 8.55%, adjacent with the Warner Bros. windfall. The banal carries a beta of 1.548, truthful mega-cap tech weakness hits NFLX harder. The Warner Bros. walk-away removed a contented acceleration catalyst immoderate investors had priced in. The banal sits 15% beneath its 52-week precocious of $134.12.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Netflix wasn't 1 of them. Get them present FREE.
Wall Street Sees 28% Upside. Our Model Says Far More
The Street's mean people sits astatine $114.56, supported by 8 Strong Buy, 29 Buy, 12 Hold, and 1 Strong Sell ratings. Bullish sentiment runs astatine 74%.
The basal lawsuit prediction is $326.35 with a 90% assurance score, the bull lawsuit is $341.95, and the carnivore lawsuit lands astatine $248.70. Analysts are anchored to trailing net portion guardant EPS of $18.03 reflects operating leverage from advertizing and planned 31.5% operating margin. The Street is excessively blimpish connected monetization.
The Path to $350 Per Share
Reaching $350 from today's terms of $89.65 requires a summation of 290.4%. That stretches adjacent Netflix's 10-year history.
With guardant EPS of $18.03, a terms of $350 implies a guardant P/E of 19x. Our basal lawsuit of $326.35 already implies 6x, meaning the bold people requires astir 13x further aggregate enlargement disconnected depressed implied earnings.
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