Netflix Stock Flopped on Earnings. Barchart Options Data Tells Us NFLX Could Be Headed Here Next.

Core Insights - Netflix shares have declined approximately 10% following disappointing earnings for Q3, primarily due to a tax dispute in Brazil [1] - The company's quarterly revenue met market expectations, but per-share earnings of $5.87 fell short by over a dollar [1] - Since June, Netflix stock has decreased more than 15% [2] Financial Performance - The earnings miss has led to discussions about buying the dip in Netflix stock, with management highlighting artificial intelligence (AI) as a significant opportunity for growth [3] - CEO Ted Sarandos emphasized that while AI can enhance content optimization and operational efficiency, it cannot replace great storytelling [4] Analyst Ratings and Price Targets - Morgan Stanley has reiterated its "Overweight" rating on Netflix, raising the price target to $1,500, suggesting a potential upside of nearly 35% [5] - Options data indicates potential upside for NFLX shares, with contracts expiring in January 2025 suggesting a target of approximately $1,231 [6] Market Trends and Engagement - Analysts note that margins outperformed in Q3 and engagement trends are improving, which could support a rise in Netflix's stock price [7] - The company's advertising business is expected to more than double by 2025, contributing to potential share price increases [7] Wall Street Sentiment - Overall, Wall Street remains bullish on Netflix shares as firms express positive outlooks heading into 2026 [8][9]