Netflix(US:NFLX) Benzinga·2026-01-21 18:23Core Viewpoint - Netflix reported fourth-quarter financial results that beat analyst estimates for revenue and earnings per share, but the stock is experiencing downward pressure due to lowered price targets and concerns about guidance and near-term outlook [1][4]. Analyst Ratings and Price Targets - Goldman Sachs analyst Eric Sheridan maintained a Neutral rating and lowered the price target from $112 to $100 [1]. - Rosenblatt analyst Barton Crockett also maintained a Neutral rating, reducing the price target from $105 to $94 [2]. - Canaccord Genuity analyst Maria Ripps kept a Buy rating but lowered the price target from $152.50 to $125 [2]. - KeyBanc analyst Justin Patterson maintained an Overweight rating, lowering the price target from $110 to $108 [2]. - Wedbush analyst Alicia Reese reiterated an Outperform rating with a price target of $115 [3]. Financial Performance Highlights - Netflix's fourth-quarter report showed strong performance with above-guided total revenue, operating income, and robust free cash flow generation [4]. - The company generated $1.5 billion in advertising revenue for the full fiscal year [4][9]. - Netflix's total subscribers reached 325 million, slightly below analyst estimates [6]. Concerns and Challenges - Analysts noted acquisition-related expenses and higher operating expense growth as negatives from the earnings report [5]. - There are concerns regarding Netflix's viewership growth, which may have disappointed investors despite a strong content lineup in the second half of 2025 [10][11]. - The acquisition of Warner Bros. is seen as a potential overhang affecting Netflix's stock performance [10][11]. Long-term Outlook - Analysts express a positive long-term outlook for Netflix, particularly regarding its advertising business, which is expected to see substantial growth [12]. - Despite near-term weaknesses, there is optimism that Netflix can return to low double-digit growth annually by fiscal 2027 [11].