Here’s What Dragging Netflix (NFLX) Down

Netflix, Inc. (NASDAQ:NFLX) is one of the Good Stocks to Invest in Now. Although the stock has declined roughly 25% since FQ1 2026 earnings, Wall Street’s 12-month average price target suggests more than 41% upside from the current level.

​The company released earnings on April 17, following which the stock started losing value, pressured by cautious full-year 2026 revenue guidance. Netflix posted $12.25 billion in revenue ahead of the expected $12.17 billion and EPS of $1.23. Management maintained its full-year guidance of 12% to 14% revenue growth and a 31.5% operating margin.

​Despite the cautious outlook and decline in share price, analysts project significant upside due to the company’s advertising tier scales and live sports business acceleration. For instance, recently, on June 4, Bernstein SocGen Group reiterated an Outperform rating on Netflix, Inc. (NASDAQ:NFLX) with a price target of $110. The firm noted that beneath the backdrop of declining share value lies the fundamental strength of Netflix. The firm highlighted that Netflix remains a utility subscription video-on-demand service at a low cost, and is underpenetrated in non-Anglophone markets.

​Management had also pointed towards significant room for growth in the earnings call, noting that the company currently only holds 5% of global TV viewership share.

Netflix Inc. (NASDAQ:NFLX) is a global streaming service offering TV shows, movies, documentaries, and interactive content. It operates a subscription model, produces “Original” content, and supports both ad-free and ad-supported viewing across devices.

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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