Can Netflix (NFLX) Recover from Its Post-Earnings Pullback?

Netflix Inc. (NASDAQ:NFLX) is among the most fantastic stocks every investor should pay attention to. On November 3, Raymond James analyst Andrew Marok reaffirmed his Buy rating and a price target of $1,350 on the stock. In addition, TheFly reported that analysts from KGI Securities upgraded the stock to “Outperform” from “Neutral” with a price target of $1,350.

Netflix Inc. (NASDAQ:NFLX) has faced mixed analyst sentiment following the release of its softer Q3 results and weaker-than-expected Q4 guidance on October 22. Netflix Inc. (NASDAQ:NFLX) booked an unexpected $619 million expense in Q3 related to Brazilian tax disputes, which impacted the quarter’s operating margin by 500 basis points. However, the company stated that it does not expect any material impact on its future financials. The stock tanked by 10% on the day.

Among the cautious calls, analysts at Erste Group had downgraded the stock’s rating to a Hold from Buy on October 31. While the analysts acknowledged Netflix’s topline and earnings growth, they believe the upside potential is limited as the company trades at a relatively high P/E.

Around the same time, Reuters reported that Netflix Inc. (NASDAQ:NFLX) has been considering a deal to acquire the studio and streaming businesses of Warner Bros. Discovery. However, the company has not provided any official confirmation or comment. Bloomberg’s recent reports indicated that Comcast and Paramount Skydance are in talks to acquire parts of the company, which would likely lead to tough negotiations.

Netflix Inc. (NASDAQ:NFLX) is a global streaming entertainment platform that offers on-demand media content across more than 190 countries through a subscription-based model.

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.

READ NEXT:  13 Best Stocks to Buy According to Citadel LLC and Goldman Sachs Defense Stocks: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.