Netflix today
As of 10/23/2025 at 04:00 PM ET
- 52 week range
- $746.25
▼
$1,341.15
- P/E ratio
- 46.52
- Price target
- $1,352.78
After surging through the first half of 2025, Netflix has become a streaming giant Nasdaq:NFLX It has now given up half of its gains. As of June 30, Netflix shares were up more than 50%. After the company’s Q3 2025 earnings, the stock’s year-to-date gains fell to 25%.
Netflix closed down 10% on October 22, as markets reacted to the entertainment stock’s latest financial data. However, a disappointing earnings report can sometimes create a great opportunity for investors. Below, we’ll analyze the company’s results and consider the next updates to its Wall Street price target. Data shows that analysts now expect significant upside potential in Netflix shares in the range of 30%.
Brazil weighs in on strong NFLX results
In the third quarter, Netflix posted revenue of just over $11.5 billion, or a growth rate of 17.2%. This was basically in line with expectations. The biggest disappointment came in adjusted earnings per share (EPS), which came in at $5.87. This missed estimates by $1.01. Wall Street expected Netflix’s adjusted earnings per share to rise more than 27%, but the company only achieved an 8.7% increase.
This loss came mainly from one major factor: a $619 million tax expense from Brazil. These expenses, which Netflix has accumulated over more than three years, were the result of a Brazilian Supreme Court ruling in August against another company. This ruling expanded the scope of taxable Netflix transactions beyond what was legal in the past.
Without these expenses, Netflix’s adjusted EPS would likely have beat estimates, perhaps by a significant degree. Netflix’s operating margin was about 33% excluding fees, versus 28% with fees. This would have easily exceeded our 31.5% operating margin guidance.
Most importantly, Netflix does not expect this issue to affect them in the future. The most important takeaway for investors is that Netflix’s underlying fundamentals have remained strong, providing support for its long-term bullish case.
However, Netflix remains a multinational company, which exposes it to some risks. In fact, 56% of its revenue came from outside the US and Canada in the third quarter. Revenue also saw the fastest currency-neutral growth in Latin America and the Asia-Pacific region.
Therefore, Netflix may have to deal with other unexpected international issues in the future. However, the company said there are no taxes in any other major country in which it operates that look or behave like those in Brazil.
Analysts ignore Netflix’s Brazilian flaw
Netflix stock forecast today
$1,352.78
21.48% upModerate purchase
Based on 39 analyst ratings
| Current price | $1,113.59 |
|---|---|
| High expectations | $1,600.00 |
| Average expectations | $1,352.78 |
| Low expectations | $720.00 |
Netflix stock forecast details
MarketBeat’s consensus price target on Netflix is around $1,340, which implies an upside of roughly 20% from recent levels. However, an examination of updates posted after the company’s earnings announcement suggests that Netflix’s third-quarter EPS loss did not faze Wall Street analysts.
Only a small number of analysts tracked by MarketBeat have revised their targets — and among those with historical data, the average target fell just 2.2%, well below the stock’s actual 10% decline.
Furthermore, the average target among all forecasts is just under $1,460, suggesting that Netflix shares could rise by just over 30%. This amount of implied upside potential is out of the ordinary for Netflix, whose stock price typically shows little deviation from average targets. This provides further evidence that Netflix stock may be attractively valued.
Wall Street eyes new highs as NFLX’s P/E approaches 3-year average
It is important to note that this target at $1,460 remains optimistic. This suggests shares will rise about 9% above their previous all-time high closing price of around $1,340. Looking at Netflix’s forward price-to-earnings (P/E) shows that the company’s valuation has declined, but not by much.
The forward P/E of 35.5x has fallen approximately 27% from its three-year peak of 50x. However, it is still about 5% higher than Netflix’s average forward P/E of 34.5 times over that period.
Netflix’s recent pullback could represent a compelling buying opportunity. advertising revenue, Live sportsAdditional international expansion are all real and lasting areas of growth. Netflix also sees a lot of room for growth in the US, where it only accounts for about 10% of the time spent watching TV.
Streaming services continue to take share from linear TV, which still controls about 43% of viewing time in the United States. These are other key winds helping Netflix’s outlook.
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