Netflix analyst price-target wave after Q3 print: at least 14 brokerages cut targets as shares slide ~6% premarket (Oct 21)
What happened
Netflix shares dropped roughly 6% in premarket trading on Wednesday, October 21, extending the ~5-7% after-hours slide from Tuesday's Q3 earnings report, as at least 14 brokerages lowered their price targets on the stock following the results, according to LSEG data compiled by Reuters. Third-quarter EPS of 87 cents beat the 82-cent consensus and revenue grew 11.8% to about $12.9-13.44 billion, but Netflix guided fourth-quarter net income to $2.79 billion (EPS of 67 cents) versus the $3.07 billion / 73 cents analysts expected, forecast Q4 revenue of $13.44 billion against a $13.51-13.52 billion consensus, and cut its 2026 advertising revenue forecast to roughly $2.7 billion from about $3 billion. If current losses hold, the company is set to shed about $17 billion of market value; the stock has declined more than 26% this year.
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Start your free 14-day trialWho’s affected
- Netflix (NFLX) — directly hit; at least $17B of market value at risk on the day, with the stock down ~26% YTD. Walt Disney (DIS) and Comcast (CMCSA) — read-through on streaming multiples and valuation premium as Netflix trades at ~18x forward earnings vs Disney's ~15x. ETFs holding NFLX — 623 ETFs have exposure to the stock per Seeking Alpha/TradingView coverage, facing correlated pressure.