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Investing.com - Goldman Sachs has raised its price target on Netflix (NASDAQ:NFLX) to $1,140.00 from $1,000.00 while maintaining a Neutral rating on the streaming giant ahead of its second-quarter 2025 earnings report. The stock is currently trading near its 52-week high of $1,341.15, having delivered an impressive 90.35% return over the past year.
The investment bank expects Netflix’s consumption habits, retention, monetization trends, and user growth to remain resilient, supported by the company’s robust content slate planned for the second half of 2025. With a perfect Piotroski Score of 9 and an overall "GREAT" financial health rating according to InvestingPro, Netflix continues to demonstrate strong operational performance, maintaining 15% revenue growth in the last twelve months.
Goldman Sachs analyst Eric Sheridan identified several key investor debates surrounding Netflix, including the cadence of pricing actions in mature markets, future average revenue per member growth dynamics, and perceptions around Netflix’s competitive position against other streaming platforms like YouTube and Peacock, as well as social media channels including TikTok and Meta (NASDAQ:META). Trading at a P/E ratio of 59.84, the stock’s premium valuation reflects its market leadership position and growth prospects.
The firm also highlighted investor focus on potential impacts on subscriber engagement and retention trends resulting from Netflix’s solid content lineup for the latter half of 2025, along with increasing attention to the company’s investments in live entertainment content.
Goldman Sachs updated its forward estimates for Netflix based on its intra-quarter research and the broader macroeconomic environment, resulting in the 14% increase to its 12-month price target while maintaining its Neutral stance on the stock.
In other recent news, Netflix’s third and final season of "Squid Game" set a new streaming record with 60.1 million views in just three days, making it the ninth most-watched non-English TV show on the platform. The entertainment giant also announced plans to open its first two Netflix House locations in Philadelphia and Dallas by late 2025, with a third venue set for Las Vegas in 2027. These venues will offer immersive experiences based on popular Netflix shows, interactive attractions, and themed merchandise. Meanwhile, JPMorgan has maintained its Neutral rating on Netflix, citing a balanced risk/reward profile amid strong fundamentals and valuation metrics. The firm projects double-digit revenue growth through 2026, supported by content strength and advertising growth. In contrast, Oppenheimer raised its price target for Netflix to $1,425, maintaining an Outperform rating. The firm predicts Netflix’s revenue will double by 2030 and forecasts significant advertising revenue growth. These developments reflect Netflix’s strategic efforts to expand its brand and strengthen its market position.
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