Jefferies and Bank of America maintain bullish calls on NFLX ahead of Q2 results, citing long-term growth potential.
Netflix Inc (NASDAQ:NFLX) will release second-quarter earnings tonight, with shares trading near $73.50 after a 20% year-to-date decline. Despite the drop, two major brokerages have reiterated Buy ratings, targeting $110 and $125 respectively, viewing the pullback as a buying opportunity.
The stock’s decline has been attributed to concerns over engagement trends, AI’s impact on content creation, and rising competition from media mergers. Bank of America noted Netflix’s history of adapting to challenges, such as subscriber slowdowns in 2022 and margin pressures in 2023, both followed by strong rebounds.
Jefferies does not anticipate a significant upside surprise in Q2 or full-year guidance, but both firms emphasize management’s track record of execution and long-term value creation.