On January 15, Wedbush reduced its price target for Netflix, Inc. (NASDAQ:NFLX) from $140 to $115. The firm kept an 'Outperform' rating on the stock.
The adjustment follows a decline in Netflix's share price after the company reported disappointing third-quarter results and fourth-quarter guidance. Sentiment has been further affected by concerns related to the pending Warner Bros. Discovery (WBD) acquisition. Over the last six months, the stock has fallen approximately 29%.
Wedbush stated that execution risks remain. However, the firm believes Netflix is positioned for significant growth in global advertising. It pointed to three core strategies: improving ad interactivity, growing ad partnerships, and enhancing purchasing capabilities. These are expected to accelerate ad revenue contribution in the coming years.
Also on January 15, Monness, Crespi, Hardt & Co. reaffirmed a 'Neutral' rating on Netflix. This came ahead of the company's fourth-quarter 2025 earnings report, scheduled for January 20. The firm projects a 17% year-over-year revenue growth for the quarter, consistent with its third-quarter performance.