Analyst Downgrades Netflix (NFLX) From ‘Buy’ to ‘Hold’

With an upside potential of 24.92% as of May 3, Netflix, Inc. (NASDAQ:NFLX) is included among the 10 Best Fortune 500 Stocks to Buy According to Analysts.

Analyst Downgrades Netflix (NFLX) From 'Buy' to 'Hold'

Netflix, Inc. (NASDAQ:NFLX) is one of the world’s leading entertainment services offering TV series, films, games and live programming across a wide variety of genres and languages.

On April 27, Erste Group downgraded Netflix, Inc. (NASDAQ:NFLX) from ‘Buy’ to ‘Hold’, without assigning the stock a price target. The analyst firm expects the company to grow its revenue by 12%-15% this year, indicating a lower growth rate compared to 2025. Erste sees a “significantly higher” valuation for Netflix compared to the rest of the sector, limiting further potential upside for the stock.

Netflix, Inc. (NASDAQ:NFLX) is targeting a revenue growth of 12% to 14% for full-year 2026, with an operating margin expected at 31.5%. This includes the company’s goal of roughly doubling its advertising business to about $3 billion. It also needs mentioning that Netflix authorized an additional $25 billion in share repurchases on April 22. This builds on the approximately $6.8 billion already available for repurchase as of March 31 under the company’s December 2024 buyback program.

While we acknowledge the risk and potential of NFLX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NFLX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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