Netflix Stock Hits 2-Year Lows: Dan Ives Says Streamer Cut ‘Two of the Numbers That Matter Most’

Netflix Inc. (NASDAQ:NFLX) shares hit new 52-week lows and sit at levels last seen in August 2024 after third quarter financials reported Tuesday failed to win over investors. Analysts are lowering their price targets and see more pain for the streaming giant ahead.

The Netflix Analysts

• Guggenheim analyst Michael Morris maintained a Buy rating on Netflix stock and lowered the price target from $80 to $78.
• Rosenblatt analyst Barton Crockett maintained a Neutral rating and lowered the price target from $75 to $71.
• Needham analyst Laura Martin downgraded shares from Buy to Hold and withdrew a price target of $120.
• Yorkville Ives analyst Dan Ives maintained an In-Line rating with a price target of $75.

Guggenheim on Netflix Stock

Third quarter results met guidance, while the company’s outlook came in short of expectations, Morris said in a new investor note.

The analyst said with an unchanged strategy, Netflix is "tasked with doing better."

"We consider a more impactful slate non-negotiable for renewed investor interest," Morris said.

Morris said the company needs to find more "home runs" across different formats and genres and could also expand through more licensing deals.  

"Netflix is a top platform for licensed product, and in our view more win-win partnerships with underexposed content at attractive terms would be incremental."

Rosenblatt on Netflix Stock

Slowing growth, executive changes and job cuts are all negative items mentioned by Crockett in a new investor note.

"We don’t see a clear argument for a much higher sustained growth pace," Crockett said.

The analyst said Netflix did not report its advertising revenue figure for the quarter and did not reiterate a previous goal of doubling advertising revenue year-over-year for 2026. Instead, the new figure is $2.7 billion, up 80% year-over-year.

Once a key strength for the company, the United States may be the weak market for growth, according to Crockett.

The analyst said U.S. subscribers pay the least per viewing hour of any SVOD service, while CEO Ted Sarandos said the region did not have any home run hits for streaming in the quarter.

Needham on Netflix Stock

Weak guidance and revenue growth have led Martin to downgrade the stock in a new investor note. The analyst is also concerned about the recent executive changes, including Peter Rice replacing Bela Bajaria as Netflix’s Chief Content Officer.

"NFLX’s content problems seem clear, and we think Peter Rice is an excellent TV executive, but we expect it to take him ~2 years to fix NFLX’s ~$20B content slate, with material write-offs before then," Martin said.

Martin said advertising rates are disappointing for Netflix, and the company is struggling to maintain streaming dominance against competition.

The analyst said lower free cash flow, margin pressure and a lack of hits in the U.S. market are among the reasons for the downgrade.

"We worry that NFLX’s strategy is too narrow because we think its ‘job to be done’ should be to aggregate and monetize leisure time globally, instead of aggregating premium long-form content."

Yorkville Ives on Netflix Stock

A cut to advertising revenue guidance is one of the key reasons Ives is staying on the sidelines when it comes to Netflix stock.

"Netflix delivered its third-quarter forecast but trimmed two of the numbers that matter most to our view, and we believe that is what investors will take from the print," Ives said.

The analyst is referring to full-year revenue guidance now implied at $51.1 billion, below the midpoint of previous guidance and advertising revenue for the fiscal year being cut from $3 billion to $2.7 billion.  

"Our thesis has been that Netflix is a structurally strong franchise whose valuation needs clearer evidence that advertising, organic membership growth, and engagement can carry growth once the pricing benefit fades."

Netflix Stock Price Action

Netflix stock is down 4.9% to $65.30 on Wednesday, with shares hitting new 52-week lows of $64.10 earlier in the trading session. The stock now trades at two-year lows with shares down 28.3% year-to-date in 2026.

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