In a booming market where most stocks keep climbing, any pullback can test investors’ conviction: Is it a buying opportunity or the start of trouble?
Netflix (NFLX), the old “N” in FAANG now overshadowed by Nvidia but still a heavyweight in streaming, rattled investors this week.
The stock plunged roughly 10% on Oct. 22 after the company’s third-quarter results showed solid revenue growth but a sharp earnings miss tied to a $620 million tax charge in Brazil.
The company reported Q3 2025 revenue of $11.5 billion, up approximately 17% year over year. However, net income came at $5.87 per share, missing analyst expectations of $6.96 per share.
For Q4, Netflix guided revenue of about $11.96 billion and earnings per share of about $5.45, both slightly above Wall Street’s expectations.
Several analysts have since updated their targets for Netflix following the report.
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Analysts reset Netflix stock price target after earnings
Wall Street analysts are mixed on Netflix’s stock target after earnings.
Wedbush lowered the firm’s price target on Netflix to $1,400 from $1,500 and reiterated an outperform rating, Thefly reported. The analysts say Netflix’s Q3 results and Q4 guidance underwhelmed investors, but they still believe Netflix is positioning for substantial growth in advertising.
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JPMorgan lowered the firm’s price target on Netflix to $1,275 from $1,300 and keeps a neutral rating.
The firm believes the Brazil tax expense “creates noise, but it’s not an issue.” The bigger focus, says JPMorgan, is the lack of revenue upside in the back half of the year.
While some analysts have set an alarm, some celebrate the buy-the-dip moment.
Argus reiterates a buy rating and $1,410 price target on Netflix shares, saying Netflix’s value proposition compared to other entertainment options remains intact, and it remains the largest long-form video streamer.
Veteran trader: Netflix now a risk-management play
Stephen Guilfoyle, a 30-year Wall Street veteran who now runs Sarge986 LLC, a family trading operation, says he is buying more shares of Netflix during the post-earnings slump, according to a note he shared on TheStreet Pro.
“Growth is solid. Cash flows are excellent. The balance sheet is in good shape,” Guilfoyle wrote, adding that the recent pullback created an opportunity.
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Technically, he noted that Netflix stock had formed a bullish falling wedge pattern and was trying to break out before Oct. 21’s sharp drop. “Now, that little double-top pattern at the end of the wedge will matter most,” he said.
Guilfoyle plans to “buy this dip,” but he is drawing limits. “The stock is still a bit expensive. I am not a daredevil. I will bail if Netflix cracks its own 200-day SMA.”
He also cautioned that the stock could face near-term pressure as the loss of its 50-day SMA may prompt some portfolio managers to sell. Still, he sees that as a short-term trading opportunity.
Meanwhile, he warned investors to respect the panic point.
“This is not a name to set and forget,” he said. “This will be a project in risk management.”
