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The NFLX Report

Your concise guide to the latest analysis and outlook for Netflix stock.

Fundamental Analysis

Netflix continues to exhibit characteristics of a growth stock, commanding a premium valuation driven by strong expectations for future earnings.

• P/E Ratio: As of late September 2025, the Price-to-Earnings (P/E) ratio stood at approximately 51.59. This figure is higher than its recent 12-month average, suggesting investors are willing to pay more for each dollar of earnings, which is typical for a company with strong expected future earnings growth.

• Revenue and Profitability: The company demonstrates robust profitability, with strong Return on Equity (ROE) and Return on Invested Capital (ROIC), outperforming industry peers. Revenue growth is projected to remain at double-digit rates, supported by expansion into international markets, the new ad-supported tier, and continued success with original content.

Technical Analysis

The stock's technical picture presents a mixed view of both underlying strength and potential near-term caution.

• Trend and Price Channel: Netflix is currently in a rising trend channel in the medium to long term, indicating a consistent upward movement as investors buy at increasingly higher prices.

• Support and Resistance: The stock is trading within a relatively narrow range, with key support around $1,150 and resistance at $1,250. A definitive move outside this channel would likely signal the next major direction.

• Momentum Indicators: Indicators like the Relative Strength Index (RSI) show a falling trend, which is often interpreted as an early warning sign of a possible downward trend reversal. Additionally, a Negative Volume Balance is noted, suggesting selling pressure is accompanied by higher volume than buying pressure, which is a sign of underlying weakness.

  

Big News

• Musk's Cancellation Call Sparks Volatility: Billionaire Elon Musk recently urged his social media followers to cancel their Netflix subscriptions, citing a cultural agenda. This news caused the stock to drop, highlighting the potential for significant public commentary to influence short-term price movements.

• Major Content Partnership Announced: News of a major new content partnership helped propel the stock higher in September, reinforcing investor confidence in Netflix's ability to maintain its massive content library and drive subscriber engagement.

• Hollywood Labor Negotiations Resolution Signals Relief: Progress in ongoing Hollywood labor negotiations has been a significant development, easing investor uncertainty around future original content production timelines and costs for the fourth quarter and beyond.

• Analysts Lower Near-Term Margin Outlook: Ahead of the third-quarter earnings report, some analysts lowered their near-term margin outlook for Netflix, contributing to a slight pullback in the share price as investors became more cautious about immediate profitability metrics.

Expert Recommendations and Forecast

• Next Earnings Date: Netflix is scheduled to report its third-quarter 2025 financial results on Tuesday, October 21, 2025, after market close.

• Outlook: Consensus estimates project Earnings Per Share (EPS) of $6.88 for the quarter, which would represent a robust 27.41% increase compared to the same quarter last year. Revenue is projected to rise by about 17.3% to $11.52 billion. The overall outlook remains positive, supported by the successful implementation of the ad-supported tier, continued subscriber growth, and improved operating margins.

Earnings and Outlook

• Consensus Rating: The general consensus among Wall Street analysts is a "Buy" rating.

• Sentiment Breakdown: A significant majority of analysts lean toward a positive outlook, with a combined 71% recommending either a "Strong Buy" or "Buy."

• Price Targets: Recent individual analyst targets vary, reflecting different valuation models. For example, Jefferies maintains a $1,400 target, while Loop Capital has an increased target of $1,350. The overall consensus price target has been trending upward, reflecting growing confidence in the company's long-term strategy and execution.