Wall Street Analysts Raise Price Targets for Netflix After Earnings Surge

In a significant upward shift for Netflix Inc., analysts on Wall Street have revised their price targets for the streaming giant following its impressive second-quarter earnings report, which surpassed analyst expectations. The company's revenue increased by 16% year-over-year, prompting a more optimistic outlook from several investment firms.
On July 18, 2025, Netflix's earnings report revealed a notable performance that included a raised full-year revenue outlook, providing a positive signal to investors. However, shares saw a slight decline of about 2% in premarket trading after Netflix cautioned that its operating margin for the second half of the year might be lower than in the first half, due to increased costs associated with content amortization and marketing efforts linked to a larger slate of releases planned for later in the year.
Analysts reacted positively to the earnings report, with several firms increasing their price targets significantly. Piper Sandler raised its price target from $1,400 to $1,500 per share, reflecting an expected upside of approximately 18% from the stock's closing price prior to the announcement. Analyst Thomas Champion stated, "We continue to see NFLX as a defensive name with multiple upside levers. FY25 revenue guidance was raised by around $1 billion, indicating management's confidence."
Morgan Stanley also raised its target to $1,500, maintaining an overweight rating on the stock. Analyst Benjamin Swinburne highlighted the potential for a significant increase in advertising revenue, citing newly deployed advertising technology that is expected to double ad revenue in 2025. He noted, "Netflix's early but growing use of GenAI tools to power content and product innovation further reinforces our bullish view."
Wells Fargo raised its price target to $1,560, suggesting an upside of over 22%. Analyst Steven Cahall remarked, "NFLX is evolving into a larger revenue platform as it recoups money from paid sharing and leans into advertising tiers as a share gainer. The revenue acceleration will allow NFLX to invest in content and technology, driving additional subscribers and pricing, all while expanding margins."
Jefferies also adjusted its target upwards to $1,500, maintaining a buy rating. Analyst James Heaney projected that subscriber growth would benefit from Netflix's crackdown on password sharing and the introduction of a new ad-supported tier. He emphasized a disciplined approach to content spending leading to robust free cash flow margins of over 25% in the long term.
UBS increased its target to $1,495, with analyst John C. Hodulik asserting that ongoing secular trends and competitive dynamics would support Netflix's ability to drive stronger monetization and operational leverage.
JPMorgan, while raising its target to $1,300, reiterated a neutral rating. Analyst Doug Anmuth noted that Netflix's increased outlook for 2025 was primarily driven by favorable foreign exchange conditions due to a weaker U.S. dollar and subscriber growth, particularly in light of the success of popular series such as 'Squid Game' and 'Ginny & Georgia'.
The reactions from analysts underscore a growing confidence in Netflix's strategic direction, particularly as the company navigates the competitive landscape of streaming services. With a focus on innovation and monetization through advertising and content expansion, Netflix appears poised to reinforce its market position in the coming quarters.
As the streaming industry continues to evolve, the implications of Netflix's earnings and subsequent analyst ratings may influence investor sentiment and market dynamics, potentially benefiting the company as it adapts to changing consumer preferences and industry trends.
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