Netflix, Inc. (NASDAQ:NFLX) is one of the stocks that Jim Cramer shared his take on. A club member asked for Cramer’s current take on the stock and whether it is a buy, sell, or hold. He commented: “It has been a buy for me all along until they got into this thing with the, with Paramount to buy… Warner Brothers. I mean, what is that? They’ve got the best studios in the world. They don’t need that. Come on, Netflix.” Jim Cramer on Netlfix (NFLX)’s Potential Deal With Warner Bros.: “They Don’t Need That” ...

Core Insights - Netflix, Inc. is currently viewed as a strong investment opportunity in the communication and media sector, with a maintained Buy rating from Morgan Stanley and a price target of $150 [1] - The stock has experienced a decline of over 14.88% since its Q3 2025 earnings release, but analysts project a 25% compound annual growth rate in adjusted EPS through 2028, driven by revenue growth and margin expansion [2] - Netflix is engaged in a competitive bidding process with Comcast to acquire Warner Bros film and television studios and the Max streaming platform, which could provide long-term benefits despite potential regulatory challenges [3] Company Overview - Netflix, Inc. offers a wide range of entertainment services, including TV series, documentaries, feature films, and games across various genres and languages [4]

Core Viewpoint - Netflix Inc. is considered one of the best growth stocks on NASDAQ for the next five years, despite mixed analyst ratings and a significant one-time charge impacting its Q3 results [1][2]. Group 1: Analyst Ratings and Price Targets - Phillip Securities analyst Helena Wang maintained a Sell rating on Netflix with a price target of $950.00 [1]. - Rosenblatt raised its price target for Netflix to $1,530 from $1,515 while maintaining a Buy rating, citing slightly higher earnings estimates for 2026 [2]. Group 2: Financial Performance and Impact of One-Time Charges - Netflix's Q3 results would have exceeded expectations if not for a one-time charge of $619 million related to a Brazilian tax issue [2]. - CFO Spencer Neumann stated that the Brazilian tax is unique and does not resemble any other tax in countries where Netflix operates, confirming that without this expense, Netflix would have surpassed its financial forecasts for operating income and margin in Q3 [3]. Group 3: Future Outlook - Neumann assured that the Brazilian tax matter is not expected to have a material impact on Netflix's future results [3].

Core Viewpoint - Netflix, Inc. (NASDAQ:NFLX) is considered one of the best stocks for high returns heading into 2026 despite recent earnings misses and a subsequent stock price drop of over 11% [1] Group 1: Earnings Results - Netflix reported FQ3 2025 results on October 21, missing EPS and revenue estimates by $1.10 and $881,280 respectively [1] - The company expects FQ4 revenue to grow by 17%, which is $50 million more than Benchmark's forecast [5] Group 2: Analyst Ratings - Laurent Yoon from Bernstein reiterated a Buy rating on Netflix with a price target of $1,390, noting the strong content lineup for the fourth quarter [2] - Benchmark reiterated a Hold rating on Netflix without disclosing price targets, stating that quarterly revenue was in line with guidance and operating income would have exceeded forecasts excluding the Brazilian tax impact [4] Group 3: Market Performance - Analyst Yoon highlighted that Netflix has experienced seven single-day declines of 8% or more since COVID-19, but most of these drops were followed by recoveries due to strong fundamentals [3] - Benchmark acknowledged Netflix's strength in mature markets with record engagement but pointed out relative underperformance in emerging markets [5]

Group 1 - Netflix, Inc. is currently experiencing a post-earnings sell-off, which is viewed as an overreaction by some analysts [1] - The company has stopped regularly reporting subscriber metrics and average revenue per user, making it harder to assess its performance [1] - Despite concerns, there is confidence in Netflix's management regarding the Brazilian tax issue not impacting future earnings, indicating a potential buying opportunity [1] Group 2 - Netflix provides a wide range of streaming entertainment, including TV series, films, documentaries, and games across various genres and languages [2] - While Netflix is acknowledged as a potential investment, certain AI stocks are considered to offer greater upside potential with less downside risk [3]

Core Viewpoint - Netflix Inc. is considered one of the best big tech stocks to invest in currently, with a Buy rating and a price target of $1,390 set by KeyBanc analyst Justin Patterson [1][3]. Financial Performance - The analyst does not anticipate significant surprises in Netflix's Q3 2025 earnings, attributing improved Q3 viewership to a stronger content slate [1]. - Management is expected to forecast slight margin expansion in 2025, indicating positive financial outlook [2]. Revenue Drivers - Monetization catalysts such as pricing and advertising are expected to contribute to sustained higher revenue in 2026 [2]. - The partnership with Amazon Ads is seen as a strategic move that enhances Netflix's demand-side platforms, which should bolster ad revenue [3]. Company Overview - Netflix provides a wide range of entertainment services, including TV series, documentaries, feature films, and games across various genres and languages [4].

Core Insights - The significant change in Netflix (NFLX) stock, with a 68.7% increase from 10/13/2024 to 10/13/2025, was primarily influenced by a 25.8% change in the company's Net Income Margin [2] Factors Behind Stock Price Change - Key developments influencing NFLX stock price include the company's successful Q4 2024 earnings report, which exceeded revenue, earnings per share, and paid subscriber expectations, adding 18.9 million new subscribers [6] - The implementation and expansion of an ad-supported tier, along with measures to curb password sharing, significantly contributed to subscriber growth and revenue, with ad revenue expected to nearly double in 2025 [6] - Netflix shifted its reporting focus from quarterly subscriber counts to overall revenue and engagement metrics starting in Q1 2025, consistently beating revenue and EPS estimates throughout Q1 and Q2 2025 [6] - Price increases for subscription plans in late 2024 and early 2025, along with investments in original content and expansion into live events and sports, have been key drivers for revenue and engagement [6] - The company maintained a strong competitive position, outperforming rivals in share price increase and growing its corporate demand share in 2024 [6] Current Assessment of NFLX Stock - The current assessment indicates that NFLX stock is considered relatively expensive, prompting further analysis of the underlying factors driving this opinion [5]

Group 1: Company Overview - Netflix, Inc. is a California-based entertainment services company operating in nearly 190 countries, offering TV series, documentaries, feature films, and games [4] Group 2: Recent Developments - Advisors Capital Management LLC increased its holdings in Netflix by 5.0% in the first quarter, acquiring an additional 443 shares, bringing their total to 9,222 shares valued at $8,600,000 [1] - Netflix announced a partnership with Amazon Ads to provide advertisers using Amazon DSP access to its ad inventory, targeting markets in the United States, United Kingdom, France, Spain, and Mexico [2] - The partnership with Amazon aligns with Netflix's commitment to providing advertisers greater flexibility in achieving their marketing goals, highlighting the company's strong market position [3] Group 3: Market Position - Netflix's dominant scale, pricing power, and significant content spending reinforce its leadership in the streaming market, making it unwise to bet against the company [3]

Group 1 - Netflix announced the departure of Chief Product Officer Eunice Kim, with Chief Technology Officer Elizabeth Stone appointed as her interim successor [1][3] - During her tenure, Eunice Kim played a crucial role in increasing Netflix's subscriber base from 200 million to over 300 million members and launched the ad-supported plan [2][3] - The company is expanding its offerings, including an ad-supported service and live events, but stated that advertising will not be the primary revenue growth driver this year [3] Group 2 - Netflix provides a wide range of entertainment services, including TV series, documentaries, feature films, and games across various genres and languages [4]

Core Insights - Netflix stock has surged over 70% in the past year due to effective strategies like cracking down on password sharing and introducing a cheaper ad-supported tier, which have boosted subscriber numbers and revenue [1] - Despite the positive momentum, there are concerns regarding the stock's valuation, as it appears expensive based on traditional metrics, raising questions about future performance if market sentiment shifts [3][7] Company Performance - Netflix currently has over 222 million paid members across 190 countries, generating $42 billion in revenue, with a market capitalization of $512 billion [5][7] - The company has experienced a revenue growth of 14.8% over the last 12 months and maintains an operating margin of 29.5% [7] Valuation Metrics - Netflix is trading at a P/E multiple of 49.9 and a P/EBIT multiple of 41.1, indicating a high valuation relative to earnings [7] - The stock has historically shown resilience, returning a median of 45% within a year following sharp dips since 2010 [7] Historical Stock Performance - During past downturns, Netflix stock has generally performed worse than the S&P 500, with a notable decline of 75.9% from a high of $691.69 in November 2021 to $166.37 in May 2022, compared to a 25.4% decline for the S&P 500 [8] - The stock fully recovered to its pre-crisis peak by August 2024 and has since reached a high of $1,339.13 in June 2025, currently trading at $1,203.50 [8] Downturn Resilience - In the 2020 Covid pandemic, Netflix stock fell 22.9% but recovered fully by April 2020, while in the 2018 correction, it fell 44.2% and also recovered by April 2020 [10] - The stock experienced a 55.9% decline during the 2008 financial crisis but recovered to its pre-crisis peak by March 2009 [10]