Netflix (NASDAQ:NFLX) Faces Potential Downside According to Barclays
Summary
Barclays has set a $1,100 price target for Netflix (NFLX), indicating a potential 13.75% downside, despite expectations of strong Q2 2025 earnings. Analysts project $11 billion in revenue, a 15% year-over-year increase, driven by recent price hikes and growing advertising revenue. Netflix's strategic focus on its in-house ad tech platform and password sharing crackdown are key factors expected to boost future financial performance.
Netflix (NFLX) Faces Potential Downside as Barclays Sets $1,100 Price Target
Publication Date: July 9, 2025 Related Stock: NASDAQ:NFLX
Barclays analyst Kannan Venkateshwar has issued a price target of $1,100 for Netflix (NASDAQ:NFLX), suggesting a potential downside of approximately 13.75% from its current trading price of $1,275.31. This comes as the streaming giant prepares to announce its Q2 2025 earnings.
Q2 2025 Earnings Outlook
Netflix is scheduled to release its Q2 2025 earnings report on July 17, 2025. Analysts are projecting robust financial performance, with expected revenues around $11 billion. This represents a significant 15% year-over-year increase, primarily attributed to recent price adjustments and a growing contribution from advertising revenue.
The company's strategic price hikes, including an increase of $2.50 for its standard HD plan to $18 per month and the Premium plan to $25 per month, are anticipated to bolster earnings per share (EPS). Projections indicate EPS could rise to $7.06, a substantial increase from $4.88 in the same period last year.
Strategic Growth Drivers: Advertising and Subscriber Growth
Netflix's intensified focus on advertising is proving to be a key revenue accelerator. In April, the company launched its proprietary in-house ad tech platform in the U.S., a move designed to enhance its advertising capabilities and improve pricing realizations. This initiative is expected to further contribute to revenue growth.
Alongside advertising, Netflix's ongoing crackdown on password sharing is also playing a crucial role in driving subscriber numbers. The company anticipates that these efforts will lead to stronger subscriber growth, further supporting its financial performance.
Current Market Performance
As of July 9, 2025, Netflix's stock (NASDAQ:NFLX) is trading at $1,275.31, reflecting a decrease of 1.11% or $14.31 for the day. Intraday trading has seen the stock fluctuate between $1,260 and $1,293. Over the past year, NFLX has demonstrated significant volatility, reaching a high of $1,341.15 and a low of $587.04.
The company maintains a substantial market capitalization of approximately $542.73 billion, with a trading volume of 3,218,285 shares on the NASDAQ exchange.