"The bears focus on what the termination fee hid. Strip it out, and Q1 2026 EPS of $1.23 would've missed estimates if it weren't for that termination fee boost. Raymond James is on Hold, citing engagement and ad monetization pace, and that critique remains unanswered."
Netflix trades around $90, below its 50-day and 200-day moving averages, after a peak near $108 in April 2026. The company has over 325 million paid members and an audience approaching a billion viewers. Bulls expect continued revenue growth and strong operating margins, supported by lifted free cash flow guidance and a $2.8 billion Warner Bros. termination fee. Q1 2026 revenue rose 16.2% year over year, and free cash flow nearly doubled. Advertising is central to the upside, with a growing advertiser base and a target of about $3 billion in 2026 ad revenue. Bears argue that the termination fee masked weaker underlying EPS and question engagement and ad monetization pace.
Read at 24/7 Wall St.
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