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Needham Advises Buying Netflix (NFLX) Weakness Despite $275M Regulatory Costs

Netflix Inc. (NASDAQ:NFLX) is one of the best US stocks to buy and hold in 2026. On January 21, Needham lowered the price target on Netflix to $120 from $150 but maintained a Buy rating. Following Q4 2025 results, the firm noted that the company’s 2026 guidance is distracted by $275 million in projected legal and regulatory expenses, which are expected to dampen margins and free cash flow. Still, Needham recommends buying on weakness due to a robust 2026 content lineup and improved retention among its 325 million global subscribers (23 million year-over-year increase).

On the same day, Deutsche Bank updated the outlook on Netflix Inc. (NASDAQ:NFLX) following its Q4 2025 earnings report. The price target for the shares was raised to $98 from $95 with a Hold rating. The firm described the company’s Q4 results as strong but clarified that the operating income outlook is currently being impacted by costs related to a deal with Warner Bros.

Earlier on January 16, KeyBanc lowered its target to $110 from $139 while keeping an Overweight rating. This adjustment reflected concerns that the uncertainty regarding the Warner Bros. Discovery deal could negatively impact the stock’s price-to-earnings multiple in the short term.

Netflix Inc. (NASDAQ:NFLX) provides entertainment services worldwide. The company offers TV series, documentaries, feature films, games, and live programming across various genres and languages.

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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