Morgan Stanley trims Netflix price target to $80 from $83, keeps Overweight ahead of Q3 earnings
What happened
Ahead of Netflix's Q3 results after today's close, Morgan Stanley trimmed its price target to $80 from $83 while maintaining an Overweight rating, citing signs of green shoots from fresh content and licensing deals. The analysts wrote that 'stagnant viewing hours and lack of a big English language hit have been the primary drivers of weakness,' but that 'a stronger slate & more sports should drive urgency.' The cut follows Seaport ($90 from $102) and Huber ($70 from $85) in recent days; of 18 analysts tracked by Visible Alpha, 14 rate Netflix a buy with a mean target of $93. Options are pricing a ~9% post-earnings swing either way, larger than the 7.3% average of the last four reports.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- Netflix (NFLX) — a third price-target cut in days reinforces the 'show-me' narrative into tonight's earnings; streaming peers (Disney, Warner Bros. Discovery/Skydance, Paramount) on sector sentiment
- Fair Isaac-style competitive dynamics don't apply here — the read-through is to media multiples.
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