"Netflix Inc.'s(NASDAQ:NFLX) stock slump has intensified amid mounting investor concerns about media dealmaking, rising competition, and questions over the company's next phase of growth. JPMorgan analyst Doug Anmuth maintained a Neutral rating on Netflix and cut the price forecast from $127.50 to $124.00. Anmuth noted Netflix stock has fallen 11% since third-quarter earnings, underperforming the S&P 500's 1% decline driven by concerns over media deal headlines, competition, and a broader rotation away from high-multiple techs."
"The analyst said that investors continue to press Netflix on its potential appetite for M&A, its early revenue outlook for 2026, and the trajectory of its fast-growing advertising business. He reminded investors that Netflix historically builds rather than buys, having never completed a major acquisition. Anmuth argued that any selective M&A must expand Netflix's opportunity set, strengthen its intellectual property, and accelerate execution-not distract the company or invite regulatory scrutiny."
"He highlighted Netflix's accelerating advertising progress three years into the business. Netflix now counts 190 million monthly active ad viewers, a higher engagement threshold than the 170 million watcher metric cited in May. Anmuth noted that Netflix has reached critical ad-tier scale, with thousands of advertisers, support from major demand-side platforms, and stronger measurement capabilities. Netflix expects ad revenue to more than double in 2025, and the analyst projected an additional 46% jump to $4.3 billion in 2026 as the platform shifts toward programmatic sales."
JPMorgan maintained a Neutral rating on Netflix and trimmed its price target to $124 as the stock fell about 11% since third-quarter earnings, underperforming the S&P 500. Investors are focused on potential M&A appetite, early revenue projections for 2026, and the trajectory of the advertising business. Netflix historically builds rather than buys and any selective acquisition must expand opportunities, strengthen intellectual property, and accelerate execution without inviting regulatory scrutiny. Originals represent roughly 63% of the library and no single title exceeds 1% of viewing. Advertising has scaled to 190 million monthly active ad viewers with expectations of ad revenue more than doubling in 2025 and reaching about $4.3 billion in 2026.
Read at Benzinga
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