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Investing.com - Goldman Sachs maintained its Neutral rating and $1,140.00 price target on Netflix (NASDAQ:NFLX) following the streaming giant’s second-quarter 2025 earnings report. The stock, currently trading at $1,275.62, sits near its 52-week high of $1,341.15, with InvestingPro data indicating the shares are trading above their Fair Value.
The investment bank expects a "muted" market reaction to Netflix’s Q2 results and forward guidance for Q3 and the remainder of 2025, according to analyst Eric Sheridan. The company delivered revenue and operating income margin beats, primarily driven by foreign exchange factors. Netflix’s impressive 46.9% gross profit margin and perfect Piotroski Score of 9 underscore its robust financial health.
Netflix reported subscriber growth that exceeded internal expectations, with management noting in the shareholder letter that late-quarter additions contributed to the outperformance. The company also confirmed it remains on track to double its advertising revenue in 2025, building on its strong revenue growth of 15% over the last twelve months. For deeper insights into Netflix’s growth metrics and 20+ additional ProTips, visit InvestingPro.
For the third quarter of 2025, Netflix provided revenue guidance ahead of Wall Street estimates and increased its full-year margin framework. The streaming service enters the second half of 2025 with a strong content slate.
Goldman Sachs anticipates investor focus during the upcoming earnings call will center on Netflix’s upward trajectory for both revenue and operating margins in the second half of 2025, especially when compared to first-half performance.
In other recent news, Netflix has been the subject of several analyst updates and strategic developments. BofA Securities reiterated its Buy rating on Netflix, maintaining a price target of $1,490, with expectations that the company’s upcoming second-quarter 2025 earnings will align with guidance. BofA forecasts revenue of $11.04 billion and operating income of $3.68 billion, slightly above Netflix’s guidance. Meanwhile, BMO Capital raised its price target to $1,425, citing record-breaking viewership and emerging AI benefits as key drivers of revenue and operating income growth. Bernstein also increased its price target to $1,390, highlighting Netflix’s potential for significant growth and a trillion-dollar valuation by 2030. Additionally, Roblox has launched a licensing platform in partnership with Netflix and other major media companies, creating new gaming experiences based on popular franchises like "Squid Game" and "Stranger Things." Benchmark has maintained a Hold rating on Netflix ahead of its earnings report, with plans for a detailed analysis of member growth and market dynamics. Despite not altering its rating, Benchmark expressed long-term optimism about Netflix’s strategic position in the market.
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