China’s Xi speaks with Trump by phone, discusses Taiwan and bilateral ties
Investing.com - Goldman Sachs has lowered its price target on Netflix (NASDAQ:NFLX) to $1,300 from $1,310 while maintaining a Neutral rating ahead of the streaming giant’s third-quarter 2025 earnings report. Currently trading at $1,206.47, the streaming giant commands a market capitalization of $511 billion and trades at a P/E ratio of 51.19, suggesting premium valuation levels according to InvestingPro data.
The investment bank expects Netflix’s consumption habits, retention, monetization trends and user growth to remain resilient given the company’s robust content slate during the second half of 2025. This optimism appears well-founded, as Netflix has demonstrated strong fundamentals with 14.84% revenue growth and an impressive 71% return over the past year.
Goldman Sachs analyst Eric Sheridan identified several key investor debates that will likely continue, including the cadence of pricing actions in key markets and future average revenue per member growth dynamics as the ad-supported tier scales. InvestingPro analysis reveals Netflix maintains a perfect Piotroski Score of 9, indicating exceptional financial strength, with 15+ additional exclusive insights available to subscribers.
Other focal points include perceptions around Netflix’s competitive position against other streaming platforms and social media channels, potential impact on engagement from the second-half 2025 content slate, and the company’s increasing investments in live entertainment.
The slight price target reduction comes amid Goldman’s intra-quarter research on Netflix and consideration of the broader macroeconomic environment.
In other recent news, Netflix has announced a multi-year global partnership with AB InBev, connecting the streaming service’s content with the brewer’s portfolio. This collaboration will include co-marketing campaigns for various titles and involve consumer activations and digital promotions. Additionally, Evercore ISI has maintained its Outperform rating on Netflix, with a price target set at $1,375, citing positive trends in the U.S. market despite some concerns over subscriber churn. Meanwhile, Bernstein also reaffirmed its Outperform rating with a price target of $1,390, amid discussions about Netflix’s content licensing relationships.
In a separate development, Turkey’s broadcast watchdog has fined Netflix and other streaming platforms for content allegedly violating "national and moral values." The regulatory action targets movies with themes reportedly including queer content. Furthermore, Amazon has secured a partnership with Netflix to integrate its ad inventory into Amazon’s demand-side platform, according to Citizens JMP. This partnership is part of Amazon’s strategy to enhance its advertising capabilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.