- Goldman Sachs cut its Netflix price target to $90 from $94, maintaining a Buy rating ahead of the company's Q3 2026 earnings report, citing headwinds to user growth and engagement.
- Time spent on Netflix fell 20% year over year in the U.S. and 7% globally for the quarter, pressure Goldman attributes to seasonality, content slate, and a mix shift toward international titles.
- Netflix stock trades near $67.50, close to its 52-week low of $65.08, down 42% over the past year.
- M&M Capital rates Netflix Buy with a $74 fair value and an $82 12-month target, arguing the market prices operating margins stopping near 36% versus management's 40% peak plan.
- Goldman Sachs analyst Eric Sheridan reiterated a Buy rating and $90 price target, pointing to Netflix's content scale and the need to improve its content mix in live and event programming to lift advertising revenue.
Quotes
“headwinds to user growth and engagement”
“the market is pricing in operating margins stopping around 36%, whereas management's plan implies a 40% peak”
“Sheridan acknowledges investor focus on less transparent engagement metrics and concerns about Netflix losing U.S. media consumption mind share”