Could Netflix Stock Double From Here? The Numbers Are Getting Interesting
By Vandita Jadeja
Published: Aug 21, 1:30PM EDT
Netflix (NFLX) has been a punished megacap in 2026, but some analysts see a favorable setup for sharp mean reversion. Here's why:
- Strong Financials: Despite a 34% drop to $80, Netflix boasts $12.5 billion in free cash flow and expanding margins, supporting a $177 price target.
- High Margins: Netflix operates at 33% operating margins, compared to Disney's (DIS) 15%, while trading at half of Spotify's (SPOT) 50x earnings multiple.
- Growing Ad Revenue: Projected to reach $3 billion in 2026, with Netflix capturing just 7% of a $670 billion addressable market.
Analyst Insights
An analyst who previously called NVIDIA's (NVDA) rise in 2010 doesn't include Netflix in his top 10 AI stocks, presenting an opportunity for potential investors.
24/7 Wall St. Price Target
- Target: $177.34
- Upside: 121%
- Recommendation: BUY
- Confidence: 90%
Recent Performance
- 1-Year Drop: 33.93% from $121.42
- Year-to-Date: 14.44% lower
- Recent Gain: 18.67% in the past month off a 52-week low of $65.08
Key Numbers
- Q2 2026 Revenue: $12.56 billion (+13.37%)
- Q2 EPS: $0.80, beating the $0.7883 consensus
- Full-Year Revenue Guidance: $51 to $51.4 billion with a 31.5% operating margin target
Why Bulls Are Optimistic
Netflix's addressable market is vast compared to its current penetration. CFO Spence Neumann highlights that Netflix reaches nearly a billion people while capturing only a small portion of global TV view share. With growing ad revenue and aggressive buybacks, the stock may be set for a breakout.