Netflix (NASDAQ: NFLX) came under pressure following its latest earnings report, with shares falling around 10.57% to $96.40 in premarket trading as investors reacted to unchanged forward guidance.
The sell-off comes despite a solid first-quarter performance, highlighting a disconnect between near-term expectations and the company’s longer-term growth trajectory.
JPMorgan reiterates Buy rating for NFLX shares
JPMorgan maintained its bullish stance on Netflix, reiterating an Overweight rating with a $118 price target following the results.
Wall Street analyst Doug Anmuth advised investors to buy the dip, arguing that the post-earnings decline presents an attractive entry point rather than a fundamental shift in the company’s outlook.
Based on the premarket price of $96.40, the $118 target implies roughly 22% upside.
Guidance unchanged as pricing already baked into outlook
JPMorgan acknowledged that some investors may be disappointed by Netflix’s decision not to raise its 2026 outlook, even after delivering upside in the first quarter.
However, the firm noted that planned price increases had already been factored into the company’s initial guidance, which calls for 12% to 14% revenue growth in 2026.
As a result, the lack of an upward revision does not signal weakening fundamentals, but rather reflects a conservative and already-accounted-for outlook.
Netflix still seen as having significant growth runway
According to Anmuth, Netflix “continues to execute well,” with the business maintaining strong momentum across its core drivers.
JPMorgan believes the company still has considerable growth headroom, supported by ongoing expansion in content, pricing power, and monetization initiatives such as its advertising tier.
What this means for Netflix stock
The latest reaction highlights how sensitive the stock remains to forward guidance, even when underlying performance remains solid.
For JPMorgan, however, the sell-off does not change the broader investment case. Instead, it reinforces the view that short-term volatility may present opportunities for investors looking to gain exposure to a company still positioned for long-term growth in the global streaming market.
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