Netflix (NFLX) Rated Outperform on Strong Margin Growth

Netflix, Inc. (NASDAQ:NFLX) ranks among the best most active stocks to buy right now. On March 12, Bernstein SocGen Group reiterated its Outperform rating and $115 price target for Netflix, Inc. (NASDAQ:NFLX). According to analyst Laurent Yoon, NFLX shares rebounded fast after the company withdrew from the contest for Warner Bros. Studio and streaming assets.

The discussion has returned to Netflix’s fundamentals and the possibility of upside in 2026 margins and EPS, although engagement issues and strategic options may limit short-term gains.

Netflix, Inc. (NASDAQ:NFLX) achieved roughly 600 basis points of margin growth in 2024 and 400 basis points in 2025, excluding the impact of Brazil. The streaming giant’s 2026 margin projection is 31.5%, representing a 50-basis-point increase over 2025, after accounting for the one-time Brazilian tax.

Meanwhile, Argus reduced its price target for Netflix, Inc. (NASDAQ:NFLX) to $110 from $141 while keeping a Buy rating on the stock. According to the firm, Netflix’s November 2022 announcement of a low-cost, advertising-supported subscriber plan was a stroke of genius as its advertising business rapidly scaled.

Netflix, Inc. (NASDAQ:NFLX) is a global entertainment company that offers a subscription-based streaming service featuring TV shows, movies, documentaries, and games.

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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