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Investing.com - Bernstein SocGen Group has reiterated its Outperform rating and $1,390 price target on Netflix (NASDAQ:NFLX), according to a research note released Monday. The streaming giant, currently valued at over $509 billion, maintains a "GREAT" financial health score according to InvestingPro analysis.
The streaming giant’s shares have remained range-bound between $1,150 and $1,250 throughout the third quarter, following mixed second-quarter results that led to muted investor sentiment. Despite the recent consolidation, Netflix has delivered an impressive 57% return over the past year, with revenue growing at nearly 15%.
Bernstein expects Netflix’s revenue and margins to meet or exceed sell-side expectations, supported by projected subscriber growth exceeding 6 million in the quarter, compared to the current sell-side consensus of 5.6 million.
The firm cited several positive factors including healthy advertising trends, favorable foreign exchange conditions, and the continued impact of pricing actions implemented in the first quarter.
Netflix currently trades at 37 times 2026 consensus earnings per share and 31 times 2027 estimates, lower than its recent trading multiple, which Bernstein suggests reflects near-term questions about the company’s engagement trajectory.
In other recent news, Netflix has been the focus of several analyst reports and strategic developments. UBS reiterated its Buy rating on Netflix, maintaining a price target of $1,495, and anticipates a 17% revenue growth and 25% operating income growth for the third quarter, aligning with management guidance. BMO Capital also reaffirmed its Outperform rating with a $1,425 price target, citing strong viewership data and upcoming content releases. Similarly, Bernstein SocGen Group maintained an Outperform rating with a $1,390 target, noting a rebound in global engagement driven by the show "K-Pop Demon Hunters." KeyBanc also reiterated its Overweight rating with a $1,390 target, expecting no major surprises in the upcoming earnings report due to an improved content slate.
Additionally, Netflix announced a partnership with Spotify to introduce video podcasts to its platform starting in early 2026. This collaboration will initially launch in the United States and feature popular shows from Spotify Studios and The Ringer. These developments reflect Netflix’s strategic efforts to enhance content offerings and engagement on its platform.
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