JPMorgan Chase & Co. Has Lowered Expectations for Netflix (NASDAQ:NFLX) Stock Price

Key Points

• JPMorgan Chase cut its Netflix price target to $118 from $120 but kept an overweight rating, implying roughly a 22.6% upside from the current share price.
• Netflix beat Q1 estimates with $1.23 EPS and $12.25B revenue, but issued softer Q2 guidance of $0.78 EPS (and around $12.57B revenue), prompting a sell‑off even as management cited monetization tailwinds from price increases and ad growth.
• Analyst sentiment is mixed: MarketBeat shows a Moderate Buy consensus with a $114.82 target, while some firms have cut targets (e.g., Rosenblatt to $95), and insiders have recently sold shares.

Netflix (NASDAQ:NFLX - Get Free Report) had its target price dropped by stock analysts at JPMorgan Chase & Co. from $120.00 to $118.00 in a note issued to investors on Friday,MarketScreener reports. The firm currently has an "overweight" rating on the Internet television network's stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 22.63% from the stock's current price.

Other research analysts also recently issued reports about the company. Pivotal Research set a $96.00 price objective on Netflix and gave the stock a "hold" rating in a research note on Friday. BMO Capital Markets reduced their price target on shares of Netflix from $143.00 to $135.00 and set an "outperform" rating for the company in a report on Wednesday, January 21st. William Blair restated an "outperform" rating on shares of Netflix in a research report on Wednesday, January 21st. Canaccord Genuity Group set a $125.00 price objective on shares of Netflix and gave the stock a "buy" rating in a report on Wednesday, January 21st. Finally, Susquehanna upgraded shares of Netflix to a "positive" rating and set a $112.00 price objective on the stock in a research report on Wednesday, January 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and fourteen have issued a Hold rating to the company. According to MarketBeat.com, Netflix currently has an average rating of "Moderate Buy" and a consensus target price of $114.82.

Netflix Stock Performance

Netflix stock opened at $96.23 on Friday. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.19 and a current ratio of 1.19. The stock's 50 day moving average price is $91.90 and its 200 day moving average price is $98.56. Netflix has a one year low of $75.01 and a one year high of $134.12. The firm has a market capitalization of $406.29 billion, a PE ratio of 42.66, a price-to-earnings-growth ratio of 1.58 and a beta of 1.67.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, beating the consensus estimate of $0.76 by $0.47. The company had revenue of $12.25 billion during the quarter, compared to analyst estimates of $12.17 billion. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The business's revenue was up 16.2% compared to the same quarter last year. During the same period in the prior year, the company earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, sell-side analysts expect that Netflix will post 24.58 EPS for the current fiscal year.

Insider Buying and Selling at Netflix

In related news, CFO Spencer Adam Neumann sold 28,630 shares of the firm's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $98.00, for a total value of $2,805,740.00. Following the completion of the transaction, the chief financial officer owned 73,787 shares of the company's stock, valued at approximately $7,231,126. This trade represents a 27.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Cletus R. Willems sold 3,136 shares of Netflix stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $82.67, for a total transaction of $259,253.12. The SEC filing for this sale provides additional information. Insiders have sold 1,487,794 shares of company stock valued at $136,255,772 over the last three months. 1.37% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Brighton Jones LLC boosted its holdings in shares of Netflix by 5.0% during the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock worth $4,804,000 after purchasing an additional 257 shares during the period. Revolve Wealth Partners LLC boosted its stake in shares of Netflix by 16.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock valued at $912,000 after buying an additional 144 shares during the period. Sivia Capital Partners LLC grew its holdings in shares of Netflix by 21.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network's stock valued at $1,883,000 after acquiring an additional 246 shares in the last quarter. Strategic Investment Advisors MI increased its stake in shares of Netflix by 18.9% in the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network's stock worth $1,036,000 after acquiring an additional 123 shares during the last quarter. Finally, Schnieders Capital Management LLC. raised its holdings in shares of Netflix by 12.1% during the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network's stock worth $2,832,000 after acquiring an additional 228 shares in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q1 beat: Netflix reported $1.23 EPS and $12.25B revenue, both above consensus, with strong cash flow and margin expansion — evidence the core business is still generating robust profits. Earnings Transcript
• Positive Sentiment: Monetization tailwinds: Management highlighted price increases and growing ad revenues as durable profit drivers, which support longer‑term margin upside even if near‑term guidance is cautious. MarketWatch: Profit Boost
• Positive Sentiment: Some analysts see the sell‑off as a buying opportunity — firms including Needham and TD Cowen kept bullish views, calling the pullback a chance to buy exposure to ad growth and pricing leverage. Analyst Buy Views
• Neutral Sentiment: Full‑year outlook left broadly unchanged — management reiterated longer‑term targets even as it trimmed near‑term cadence, so the pullback centers on timing rather than an admission of structural decline. Yahoo: Full‑Year Outlook
• Negative Sentiment: Weaker Q2 guidance: Netflix set Q2 EPS guidance at $0.78 and revenue around $12.57B — slightly below Street revenue/margin expectations and cited lower year‑over‑year operating margin, which triggered the sell‑off. Financial Post: Guidance Miss
• Negative Sentiment: Leadership change: Co‑founder and chairman Reed Hastings will not stand for re‑election to the board in June — investors see timing as awkward coming with softer near‑term guidance, increasing governance/transition risk. Reuters: Hastings Exit
• Negative Sentiment: Analyst downgrade/target cuts add pressure: Rosenblatt trimmed its target to $95 with a Neutral rating and several firms issued cautious notes — amplifying downside in the immediate term. Benzinga: Rosenblatt Cut

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

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