Analysts are largely sticking by Netflix , telling clients to buy the dip after after the streaming platform's latest results sent the stock lower. The entertainment firm posted $12.25 billion in revenue for the first quarter, topping analysts' consensus estimate of $12.18 billion, per LSEG. That's also 16% higher than the $10.54 billion Netflix reported for the same period a year ago. Reported earnings per share are not comparable to the consensus estimate of 76 cents on the Street, however. However, Netflix issued lackluster guidance for the current quarter, disappointing investors. Its leadership also announced co-founder and chairman Reed Hastings' departure, raising questions about Netflix's direction that have only intensified following the firm's decision to drop its acquisition of Warner Bros. Discovery. Shares were down more than 10% in the premarket, putting them on pace for their worst day since October. Investors were also disappointed by the streaming service's announcement that it would soon seek to raises its subscription prices again — a plan that went against the Street's expectations. However, analysts in general see this as a buying opportunity, with many noting that the long-term bull case for the stock remains intact. "We buy the dip with numbers not moving much (we nudge up FY27 EPS to $3.87) and debates around engagement and AI unsettled, but find valuation compelling for a compounder with pricing power," Morgan Stanley analyst Sean Diffley said in a note to clients. He has an overweight rating on shares and a price target of $115. The stock closed Thursday's session at $107.79. However, some analysts on the Street say the stock move is exaggerated, and it isn't a reflection on the company's strategy and growth. JPMorgan: overweight, $118 Doug Anmuth's target, down from $120, corresponds to upside of around 9.5% from Thursday's close. "There's no change to our positive view on NFLX. We understand that some will be disappointed with no increase to the 2026 outlook on either the top or bottom line, despite 1Q upside… We'd take advantage of any real weakness in NFLX shares & we reiterate our Overweight rating w/Dec-26 PT of $118 based on 30x 2027E GAAP EPS of $3.92." Citi: buy, $115 Analyst Jason Bazinet's price target on shares is 6.7% above Netflix's Thursday closing price. "Recall, after large scale M & A was called off, investors suspected NFLX may increase its share repurchases and raise its FY26 margin outlook, which incorporated 50 bps of M & A expenses. In addition, some investors suspected the US price hike was previously not incorporated in the guide. However, management suggested no change to their capital allocation strategy, maintained FY26 outlook, and provided worse-than expected 2Q26 guidance. As such, we'd expect shares to trade lower (especially given the recent run in the equity)." Goldman Sachs: buy, $120 Analyst Eric Sheridan's price target indicates upside of 11.3%. "Away from the quarterly modeling cadence, we see this report as supportive of our long-term view on Netflix – sustained compounded revenue growth across regions, the scope to reinvest in the business's key strategic priorities while expanding margins and the scope for strong forward capital returns (via buybacks) over a multi-year time frame." Piper Sandler: overweight, $115 Analyst Thomas Champion raised his price target from $103. "The business seems to be progressing fine, if offering limited surprises. We suspect NFLX can retool and return to a mid to high teens topline, perhaps through the ads business or new initiatives like gaming, mobile, sports or more efficient content production via AI." Canaccord Genuity: buy, $125 Analyst Maria Ripps' target points to nearly 16% upside from Thursday's close. "The stock is under pressure after hours, reflecting elevated expectations heading into the print, as shares rallied over 40% from their recent lows in late February. That said, Netflix continues to execute on its core strategic initiatives, including scaling new content types and improving monetization through pricing and advertising." Jefferies: buy, $128 Analyst James Heaney's target, down from $134, corresponds to upside of around 18.7%. "With the stock up 40% in the last 2 months (vs. COMP +7%), investors are likely disappointed by the Q2 rev guidance miss and no raise on the FY26 rev/ OM outlook. In our view, the primary issue was overly optimistic expectations for US pricing benefit and margin expectation, rather than any fundamental deterioration." Wells Fargo: equal weight, $105 Wells Fargo analyst Steven Cahall's target equates to 2.6% downside from Thursday's close. "NFLX delivered 1Q results ahead, but we think investors expected more for '26. It's a quality compounder, but not the share gainer of yesteryear. We see 25-30x P/E as the new norm 'til revs accel, which justifies our Equal Weight rating / unch. PT." Morgan Stanley: overweight, $115 "While the 2Q guide and lack of FY26 raise drove shares lower in the after-hours, we think these are explained by the timing of US price hikes (typically taking ~2-3 months to filter through, while lapping last year's increase) and some conservatism early in the year." Deutsche Bank: hold, $100 Analyst Bryan Kraft's price target was roughly 7.2% lower than Netflix's closing price on Thursday. "The stock was down in after-market trading, we believe, due to the lack of a revenue and OI margin guidance raise, despite FX tailwinds and a US price increase. …. [but] this year's operating plan seems to be on track. Management noted that Advertising is still on track for $3B in sales this year, while the company continues to roll out new ad tools and drives higher penetration of the ads tier."
