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KeyBanc Cuts PT on Netflix, Inc. (NFLX) to $110 From $139

Netflix, Inc. (NASDAQ:NFLX) is one of the best stocks to buy in 2026 for beginners. On January 16, KeyBanc cut the price target on Netflix, Inc. (NASDAQ:NFLX) to $110 from $139 and maintained an Overweight rating on the shares, with uncertainty around the Warner Bros. Discovery deal expected to be one of the factors creating near-term overhangs to the price-to-earnings multiple. The company also received a rating update from Wedbush on January 15, which cut the price target on the stock to $115 from $140 and maintained an Outperform rating.

In another development, BMO Capital reaffirmed a Buy rating on Netflix, Inc. (NASDAQ:NFLX) on January 14 and set a price target of $143.00. The firm cited several factors that overshadow near-term headline risks for the company, as well as the investor sentiment shrouded in uncertainty surrounding its proposed acquisition of Warner Bros and worries about slower growth in 2026.

The firm highlighted that even if the acquisition deal falls through, Netflix, Inc. (NASDAQ:NFLX) would receive a sizable break-up fee, which would meaningfully offset its content spending. It added that despite the above mentioned concerns, the company’s underlying operating trends remain healthy, with the firm’s model remaining unchanged and expecting around mid-teens revenue growth into 2025, which might ease only modestly in 2026.

Despite Netflix, Inc.’s (NASDAQ:NFLX) considerable planned content investments, BMO Capital sees potential for operating margin expansion over the upcoming several years, supported in part by efficiency gains, including from AI.

Netflix, Inc. (NASDAQ:NFLX) provides entertainment services through paid memberships in around 190 countries worldwide. It acquires, produces, and licenses content for streaming, including original programming.

While we acknowledge the potential of NFLX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NFLX and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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