Price Prediction: Netflix Has 140% Upside Despite the Post-Earnings Dip

Following a bruising Q2 net effect that dropped the banal to $74.35, our proprietary exemplary says Netflix (NASDAQ:NFLX) is severely mispriced.

The 24/7 Wall St. terms people for NFLX is $178.11, implying 139.56% upside implicit the adjacent 12 months. Our proposal is buy, with assurance astatine 90%. That fig runs good supra the $112.17 Wall Street statement target.

24/7 Wall St. Price Target Summary

The fundamentals stay intact. Forward EPS of $9.8 astatine tenable multiples leaves important country supra today's price, and the advertisement concern is lone present starting to compound.

What the Post-Earnings Tumble Actually Told Us

NFLX is disconnected 40.53% implicit 1 twelvemonth and 20.7% year-to-date.

Q2 gross of $12.559 cardinal missed the $12.581 cardinal statement by 0.17%, portion EPS of $0.80 bushed the $0.7883 estimation by 1.48%. Free currency travel collapsed to $1.53 cardinal from $2.27 billion, a 32.73% driblet that spooked investors much than the tiny top-line slip.

Management flagged that contented amortization was front-loaded successful H1 and volition mean successful H2. Full-year 2026 guidance was narrowed to $51 cardinal to $51.4 cardinal with a 31.5% operating borderline and astir $12.5 cardinal successful FCF, with advertisement gross projected to astir treble to $3 billion.

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Why Bulls See a Breakout Above $190

Regional maturation is broad-based: LatAm 21%, APAC 16%, EMEA 14%, and North America 10%. The advertiser basal is up 70% YoY to 4,000+ clients, and the ad-supported tier accounts for implicit 60% of caller sign-ups successful advertisement markets.

Netflix is deploying generative AI crossed astir 300 titles and its afloat advertizing lifecycle. Q2 buybacks were $4.7 billion, the largest 4th ever, with $27.1 cardinal remaining authorized.

Our bull-case script prices NFLX astatine $191.05. A wide circulated r/wallstreetbets station announced a $300,000 double-down connected the stock, drafting 591 upvotes post-report.