Why does Wall Street think Netflix stock will plunge 10%?

Published On Dec 29, 2024, 8:30 AM

Wall Street analysts are predicting a 10% drop in Netflix's stock, primarily due to a bearish sentiment that sees the current analyst price target at $838, which is significantly lower than its trading price. Factors contributing to this outlook include concerns over slower earnings growth, as many analysts have a negative or underperform rating on the stock. Despite a strong performance this year and successful ventures into live sports and significant live viewership, the average forecast for Netflix's 2025 earnings is only about 20% growth, which may not meet investor expectations in the long run. However, some analysts believe Netflix could have a strong year ahead and continue to grow its subscriber base and revenue through price increases, indicating potential undervaluation in the stock.