You were already warned about the coming carnage on Netflix Inc. (NFLX) even ahead of earnings. Oggonomics showed that six analysts had lowered their price targets just in the week ahead of the streaming media giant’s earnings report. And after the earnings report was even more price target cuts, with some cuts even from the same firms that had already lowered their targets.
Investors may have a problem with all of these price target cuts as most of these firms still have Buy, Outperform and Overweight ratings. There were hardly any formal analyst rating downgrades despite hitting 52-week lows (and then some). This is why it is important to consider what price targets can imply versus formal ratings changes. And it’s equally important to wonder how most firms still have bullish expectations in their formal ratings.
Netflix slid by over 7.2% to $68.95 on Friday, July 17 (2026), with the stock also trading even lower the following trading day. The stock’s move to the downside put every shareholder in the red if they bought at any time during the last two years. Does the new 52-week range of $65.08 to $126.71 spell out just how low expectations for rekindled growth have dwindled? But… again, most analysts maintained their positive analyst ratings despite the price target cuts.
One key issue may go beyond Netflix’s own internal growth expectations. With its shares down nearly 50% from the peak, many investors worry about Netflix’s appetite (or perhaps a need) for a transformative acquisition transaction. The failed Warner Bros. Discovery merger may have ended up being better for the company after it didn’t leverage and dilute its shares, and Netflix did take in a $2.8 billion deal break-up fee when that deal was terminated. So, what will Netflix do next?
Here is how the newest wave of analyst price target looks below. Just don’t forget that most of the analysts still have their equivalent of Buy ratings, as follows:
- Barclays (Equal-Weight) target to $80 from $85, after cutting its target to $85 from $110 on July 14.
- Bernstein (Outperform) target to $95 from $100, after cutting its target to $100 from $110 on July 8.
- BofA (Buy) target to $105 from $125.
- Evercore ISI Group (Outperform) target to $100 from $115.
- Goldman Sachs (Buy) target to $94 from $110.
- Guggenheim (Buy) target to $75 from $120.
- JP Morgan (Overweight) target to $85 from $118.
- Morgan Stanley (Overweight) target to $83 from $90, after cutting its target to $90 from $115 on July 14.
- Oppenheimer (Outperform) target to $85 from $100, after cutting its target to $100 from $120 on July 13.
- Piper Sandler (Overweight) target to $85 from $115.
- Pivotal Research (Hold) target to $70 from $96.
- Rosenblatt (Neutral) target to $75 from $95.
- TD Cowen (Buy) target to $100 from $112.
- UBS (Buy) target to $115 from $130.
- Wedbush (Outperform) target to $105 from $118.
- Wells Fargo (Equal-Weight) target to $80 from $105.
One formal rating downgrade after the earnings report came from a firm called KGI Securities, cutting the rating to Neutral from Outperform with a $75 price target. No formal upgrades were seen despite the stock approaching a 50% correction from its most recent peak.
Two independent research reports were also tracked. CFRA (S&P) maintained its Buy rating while cutting its target to $80 from $115. And Argus maintained its existing Buy rating and has stuck by its $120 price target. Here was what Argus said as the most bullish of the pack named above:
First is the perverse narrative that Netflix’s bid in late 2025 for Warner Bros. Discovery means that the company is in trouble and sees diminishing organic growth prospects. We disagree. Netflix is the strongest long-form streaming video service, and we think it continues to operate from a position of strength rather than weakness. We commend management for having the discipline to not chase an acquisition at all costs (in contrast to Paramount Skydance). While having ‘lost’ the Warner Bros. Discovery deal, Netflix remains free to pursue growth on its own terms, successfully providing binge-worthy content, an ever improving user experience, international expansion, and expansion into new adjacent markets including live sports, videogames, podcasting, and children’s programming among others.
Perhaps the top mantra of Oggonomics may be a good reminder here… “Always a bull, you’re a fool! Always a bear, you’re broke!”
Be advised that all price targets and analyst ratings above are from the firms noted with each cut. Oggonomics does not issue any formal ratings and price targets of its own on individual stocks.
