Netflix trades around $90, below its 50-day and 200-day moving averages, after a peak near $108 in April 2026. The company has over 325 million paid members and an audience approaching a billion viewers. Bulls expect continued revenue growth and strong operating margins, supported by lifted free cash flow guidance and a $2.8 billion Warner Bros. termination fee. Q1 2026 revenue rose 16.2% year over year, and free cash flow nearly doubled. Advertising is central to the upside, with a growing advertiser base and a target of about $3 billion in 2026 ad revenue. Bears argue that the termination fee masked weaker underlying EPS and question engagement and ad monetization pace.
"The bears focus on what the termination fee hid. Strip it out, and Q1 2026 EPS of $1.23 would've missed estimates if it weren't for that termination fee boost. Raymond James is on Hold, citing engagement and ad monetization pace, and that critique remains unanswered."
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