Netflix Inc (NASDAQ:NFLX) shares are climbing Thursday, recovering some of the ground lost after earnings earlier this week.
Netflix Stock Rebounds After Earnings Sell-Off
Netflix delivered a split third-quarter report Tuesday. Earnings per share of 87 cents topped the 82 cents analysts expected. Revenue rose 12% to $12.87 billion, just under the approximate $12.88 billion consensus.
Guidance also fell short of expectations. Fourth-quarter guidance called for $13.44 billion in revenue and earnings of 67 cents a share. Street estimates were roughly $13.52 billion and 73 cents per share. Netflix's full-year revenue forecast now stands at $51.1 billion, close to the low end of the earlier $51.0 billion to $51.4 billion range.
Shares dropped about 6% after the report, then steadied. Analysts responded Wednesday with rating and target changes, and most still see upside. Netflix carries a consensus Buy rating, with an average price forecast of $84.31.Analysts Weigh in On Netflix Earnings
Wedbush analyst Alicia Reese stayed at Outperform, but cut the price target to $80 from $90. Ad delays drove the cut: Netflix now expects about $2.7 billion in 2026 ad revenue, not the $3 billion it planned, after product rollouts slipped. Reese still believes ads have substantial room to grow. Reese values the stock at 17 times 2028 EPS, down from 19 times, and noted that churn and pricing held up.
TD Cowen analyst John Blackledge kept Buy and a $100 price target. Blackledge disagrees with investors who fear a weak U.S. content slate. In Blackledge's view, revenue in the U.S. and Canada actually grew faster even after price increases. Management also said churn fell from a year ago, in the U.S. and worldwide, despite the price changes. TD Cowen blamed the softer fourth-quarter guide on the timing of ad product launches and a one-time expense tied to a workforce reduction.
Needham analyst Laura Martin turned more cautious, cutting Netflix to Hold from Buy. The note lists no price target. Martin expects new content chief Peter Rice to need roughly two years to repair the content slate, with large write-offs along the way. Currency-neutral revenue growth has slid from 14% to 11% over three quarters, and Netflix guided fourth-quarter EPS 23% lower than the third-quarter figure.
Citizens analyst Matthew Condon sees balanced risk and reward in the shares. At 14.4 times 2027 EBITDA, Condon considers the stock fairly valued. Condon highlighted weak U.S. engagement: Nielsen data show Netflix's slice of U.S. streaming viewing fell to roughly 16% in July 2026, down from 22% three years earlier. Condon views the ad cut as a rollout delay, not softer demand.
Netflix Stock Remains Below Key Averages
The bounce follows a fresh 52-week low for Netflix. Thursday's gain looks like a rebound attempt within a longer downtrend, since shares still trade below their 20-day, 50-day and 200-day moving averages.
A move back above the 20-day average at $69.43 would set the stock up for further upside after the recent slump.
NFLX Shares Are Rising
NFLX Price Action: Netflix shares were up 3.41% at $67.24 at the time of publication on Thursday. The stock is near its 52-week low of $65.08, according to Benzinga Pro.