Netflix Stock Pre-Earnings Forecast: Has the Upside Been Reflected in the Price?

Netflix’s stock is stirring up some buzz ahead of its upcoming earnings report, with shares trailing behind the broader market gains. But analysts seem pretty optimistic about Netflix’s future. Experts like Laura Martin from Needham are raising their target prices, citing Netflix’s global reach and consistent investment in content as reasons to remain bullish on the stock. It’s not just Martin, either – the street as a whole has upped their earnings estimates for 2025 and 2026, showing a lot of confidence in Netflix’s potential.

Looking at the bigger picture, Netflix has had a strong track record of exceeding expectations and raising guidance for the past couple of years. With their crackdown on password sharing, success with ad tiers, and entry into live sports, there are plenty of reasons for investors to be excited about what’s next for Netflix.

Despite a recent dip in July, experts like Larry Tentarelli see this as part of a normal sector rotation rather than a red flag. Tentarelli believes that even if there’s some profit-taking around earnings time, as long as Netflix stays above the 50-day moving average, it’s still in a strong long-term uptrend.

As for whether Netflix is becoming overpriced or already priced for perfection, some are questioning if the market has set the bar too high for another perfect earnings report. Steve Sosnick points out how Netflix has proven to be a favorite even when faced with potential setbacks like price increases, suggesting that maybe the stock is priced beyond perfection. The real test will come with the upcoming earnings report, which will reveal whether the hype around Netflix is justified or if expectations have been pushed too far.