Erste Group Bank Decreases Earnings Estimates for Netflix

Netflix, Inc. (NASDAQ:NFLX) – Investment analysts at Erste Group Bank cut their FY2027 earnings per share (EPS) estimates for shares of Netflix in a research note issued on Monday, July 27th. Erste Group Bank analyst H. Engel now forecasts that the Internet television network will post earnings per share of $3.82 for the year, down from their previous forecast of $3.84. Erste Group Bank has a “Hold” rating on the stock. The consensus estimate for Netflix’s current full-year earnings is $3.59 per share.

Several other equities research analysts have also issued reports on the company. New Street Research raised their price objective on Netflix from $96.00 to $102.00 in a research note on Friday, April 17th. Rosenblatt Securities set a $75.00 price target on Netflix and gave the stock a “neutral” rating in a research report on Friday, July 17th. President Capital lifted their price objective on shares of Netflix from $133.00 to $134.00 and gave the stock a “buy” rating in a research note on Tuesday, March 31st. JPMorgan Chase & Co. cut their price objective on shares of Netflix from $118.00 to $85.00 and set an “overweight” rating on the stock in a research report on Friday, July 17th. Finally, BMO Capital Markets downgraded shares of Netflix from an “outperform” rating to a “market perform” rating in a research note on Monday, July 20th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $103.48.

Netflix Stock Up 2.8%

Shares of NASDAQ NFLX opened at $72.39 on Wednesday. The stock has a market capitalization of $301.43 billion, a price-to-earnings ratio of 22.79, a P/E/G ratio of 0.88 and a beta of 1.52. Netflix has a 12-month low of $65.08 and a 12-month high of $126.71. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The firm’s 50-day moving average price is $77.61 and its 200-day moving average price is $85.74.

Netflix (NASDAQ:NFLX) last posted its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same period last year, the firm posted $0.72 earnings per share. Netflix’s revenue for the quarter was up 13.4% compared to the same quarter last year.

Institutional Investors Weigh In On Netflix

Large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in shares of Netflix by 912.5% during the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after acquiring an additional 351,493,659 shares in the last quarter. State Street Corp grew its stake in Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after purchasing an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC grew its stake in Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares in the last quarter. Capital World Investors increased its holdings in Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the period. Finally, Morgan Stanley increased its holdings in Netflix by 903.0% during the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock worth $8,002,414,000 after purchasing an additional 76,840,318 shares during the period. 80.93% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, Director Reed Hastings sold 386,700 shares of Netflix stock in a transaction on Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the completion of the sale, the director directly owned 3,940 shares in the company, valued at approximately $338,721.80. This trade represents a 98.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradford L. Smith sold 35,990 shares of the business’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the sale, the director directly owned 79,690 shares of the company’s stock, valued at $6,177,568.80. This represents a 31.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 899,839 shares of company stock worth $80,141,661 in the last three months. Corporate insiders own 1.24% of the company’s stock.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix has become the top viewing choice among UK audiences, edging out the BBC as streaming continues to gain share in Britain. The trend supports Netflix’s international engagement and advertising opportunities. Netflix, BBC Streaming Fastest Growing Media Category Report
• Positive Sentiment: Canada reportedly plans to scrap a levy affecting entertainment companies such as Netflix, potentially reducing regulatory costs and easing tensions with U.S. officials and Hollywood studios. Netflix Tax Will Soon Be Scrapped, Canada Hints in Court Filing
• Positive Sentiment: Several market commentators argue that the post-earnings selloff has created an attractive valuation, while highlighting Netflix’s buybacks, potential advertising growth and use of artificial intelligence to improve content and business efficiency. Netflix Is Betting Billions That AI Will Strengthen Its Business
• Neutral Sentiment: The rebound follows an earlier selloff in which disappointing third-quarter guidance overshadowed an otherwise solid second-quarter report. Netflix narrowly exceeded quarterly EPS expectations, but revenue was slightly below consensus, leaving investors focused on the pace of near-term growth. What’s Going On With the Uptick in Netflix Stock Today?
• Negative Sentiment: Erste Group Bank reduced its fiscal 2027 EPS forecast slightly, from $3.84 to $3.82, and maintained a “Hold” rating. The revision signals limited near-term earnings momentum, even though the estimate remains above the broader current-year consensus of $3.59. Netflix Analyst Estimate
• Negative Sentiment: Altimetry’s Rob Spivey argues Netflix still carries demanding profitability and growth assumptions despite falling more than 40% from its highs. Intensifying competition from Disney, Paramount Skydance, YouTube, short-form video and AI-generated content could limit the upside from advertising and bundling. 3 Stocks Standing Out and 2 Losing Momentum

Netflix Company Profile

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.