Netflix Is Crushing It Globally—Why Wall Street Still Isn’t Impressed?

Netflix shares dropped 5.1% despite beating earnings expectations and raising full-year guidance—a reminder that strong results don’t always satisfy a market pricing in perfection. The stock is up 36% in 2025 and trades at 44 times forward earnings, just below a three-year high. While the selloff may have stemmed from revenue gains partially driven by foreign exchange effects rather than robust U.S. growth, the underlying business performance remains solid. Analysts see the decline as a blip in a broader growth narrative. KeyBanc’s Justin Patterson reaffirmed his Overweight rating and $1,390 price target, highlighting confidence in Netflix’s monetization strategy and pipeline of hits including “Happy Gilmore 2” and a new season of “Stranger Things.” Similarly, Pivotal Research’s Jeffrey Wlodarczak maintained a Buy with a $1,600 target, citing strong global content expansion and pricing power.