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LivestreamMenuInvestors should shrug off concerns around Netflix’s viewer engagement as the stock is set to bounce, according to Wolfe Research. The research firm has an outperform rating on the streaming name. It raised its price target on shares to $95 from $84, suggesting nearly 19% upside from Monday’s close. “After analyzing millions of data points from Netflix’s viewing history, we believe the timing of new content releases was largely to blame for soft 2Q subscriber and engagement results,” analyst Peter Supino said Tuesday in a note to clients. “[Third quarter] content slate looks stronger, live looks like it’s adding value.” Netflix in July reported second-quarter financial results that were largely in line with expectations on Wall Street. However, the company narrowed its revenue forecast for the current fiscal year to a range of $51 billion to $51.4 billion versus its earlier guidance of between $50.7 billion and $51.7 billion, pushing shares down more than 7% in the trading session following its quarterly report. NFLX 1Y mountain Shares are down 34% over the past year. The stock is down 34% over the past year. Investors remain concerned that Netflix may struggle to gain and retain subscribers in a highly competitive streaming landscape, particularly after the firm dropped its bid for Warner Bros. Discovery and hiked subscription costs . The company stopped reporting quarterly subscriber numbers last year, so investors use other metrics as proxies to assess the strength of its customer base and overall business. Netflix is likely to post stronger results in the second half of this year and issue “solid” guidance for 2027 as it improves the timing of its content launches and leans more into live TV, according to Wolfe Research. The firm’s call falls in line with consensus on Wall Street. Of the 52 analysts covering Netflix, 38 have a buy or strong buy on the stock, LSEG data shows.Read More
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