Netflix Stock Slump Deepens As Investors Question Its Deal Strategy, Competition And Next Growth Phase

Benzinga

Netflix shares keep sliding as investors worry about media deals, rising competition, and the company’s next growth stage. JPMorgan cut its price target and kept a Neutral rating, noting Netflix’s preference to build rather than buy and projecting steady revenue and margin expansion into 2026.

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00:00It's Benzinga, bringing Wall Street to Main Street

00:02Netflix's stock has continued to drop as investors grow more concerned about media deals,

00:07rising competition, and uncertainty over the company's next stage of growth.

00:12JPMorgan's Doug Ameth kept a neutral rating on Netflix and reduced his price forecast to $124

00:18from $127.50. He said the stock has dropped 11% since earnings, underperforming the S&P 500 as

00:26investors react to media deal concerns, rising competition, and a shift away from high multiple

00:31tech names. The analyst said investors are focused on Netflix's M&A plans, emphasizing that Netflix has

00:37historically built rather than bought. He added that any selective M&A should expand the company's

00:42opportunities without regulatory risk, and that Netflix's extensive library of owned originals

00:48makes it resilient even if major studios consolidate. He projected 2026 revenue of $50 billion,

00:54margin expansion, and $12.3 billion in free cash flow, with guidance expected to show 11%

01:01to 13% revenue growth. He also projected fourth quarter revenue of $11.96 billion and adjusted

01:08earnings per share of 54 cents. For all things money, visit Benzinga.com.

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