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NFLX

NetflixA
Nasdaq / Media & Entertainment
Last Price
Quote time unavailable
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Current thesis
Q3 revenue of $12.874 billion was in line with company guidance and roughly in line with FactSet consensus, while EPS of $0.87 exceeded the $0.82 consensus reported by AP. Management reported better-than-forecast churn and reiterated a 31.5% full-year operating-margin outlook.
Posture
Constructive
Lead driver
Sentiment
What changed
1 setup hits (3d) with net bearish as of 2026-10-27.
What can break
Management lowered expected 2026 free cash flow to about $12.0 billion from $12.5 billion, primarily because of an expected Q4 real-estate transaction closing. Netflix Q3 shareholder letter
Momentum
24
Value
59
Sentiment
73
Setup hits (3d)
1 · Net Bearish
AI TargetsBase $70.00 · Bull $85.00 · Bear $55.00Analysis 2026-10-23; returns require an exact persisted reference.
Data freshness
Prices
Unavailable: Price unavailable
Fundamentals
As of 2026-10-27 • Vendor: Data Vendor v1
Scores
As of 2026-10-27 • Model: HYBRID_IC_RP
AI Memo
As of 2026-10-23 • Model: RankAlpha Sentiment Codex
Investment thesis
As of 2026-10-27

Grade is the composite factor band; factor scores use a 0–100 scale. Confidence describes evidence quality, not a probability of return. Score date: 2026-10-27. Definitions

Supporting evidence
What
Grade A · Constructive
Confidence Medium · Net Bearish
Target $84.68
Why
Momentum24 · Δ7d -3.9
Value59 · Δ7d +1.1
Sentiment73 · Δ7d -5.4
So what
Strength-led posture (Net Bearish). Favor watchlist adds and disciplined entries.

Confirming evidence

  • • 1 setup hits (3d) with net bearish as of 2026-10-27.
  • • News driver: AI rebound opens as a credit-and-earnings test.
  • • Sentiment remains the lead driver in the composite, 7D delta -5.4.

Contradictions & invalidation

  • • Management lowered expected 2026 free cash flow to about $12.0 billion from $12.5 billion, primarily because of an expected Q4 real-estate transaction closing. Netflix Q3 shareholder letter
  • • Netflix acknowledged investor concern about view-hours growth despite reporting improved churn; content spending may not translate into proportional engagement. Netflix Q3 shareholder letter
  • • The earnings beat did not resolve forward concerns: management reduced expected 2026 ad revenue by about $300 million, and Q3 margin upside was primarily expense timing.

Catalyst clock

2026-12-31

Q4 slate and margin must validate full-year guidance

Lead driver: Sentiment · See AI snapshot
Momentum
24
8% active weight
Current posture
7d trendSoftening
Δ7d
-3.9
Δ21d
-1.7
Value
59
47% active weight
Current posture
7d trendImproving
Δ7d
+1.1
Δ21d
+0.9
Sentiment
73
45% active weight
Current posture
7d trendSoftening
Δ7d
-5.4
Δ21d
-19.3
Why this grade

Composite grade A. Momentum 23.9 / Value 59.4 / Sentiment 72.6

Scenario snapshot

Scenario probability is memo-authored likelihood, not forecast certainty. Targets belong to the analysis dated 2026-10-23. Scenario method

B+
Bull case
25%
Probability
Target price
$85.00
Analysis reference price unavailable
Analysis 2026-10-23 · RankAlpha Sentiment Codex
Most likely
B
Base case
50%
Probability
Target price
$70.00
Analysis reference price unavailable
Analysis 2026-10-23 · RankAlpha Sentiment Codex
B-
Bear case
25%
Probability
Target price
$55.00
Analysis reference price unavailable
Analysis 2026-10-23 · RankAlpha Sentiment Codex
Fundamentals (TTM)
As of 2026-10-27
Market Cap
$256.73B
Beta
1.71
Shares Out
4.11B
P/E (TTM)
38.2
P/S (TTM)
9.63
P/FCF (TTM)
46.61
Rev YoY
+13.4%
EPS YoY
+11.1%
Gross Margin
+49.5%
Op Margin
+30.2%
Net Debt
$7.91B
Current Ratio
1.14
As of 2026-10-27 • Updated nightlySource: Internal modelMethods & Data