Barclays Warns of 14% Downside for Netflix Despite Growth

by MarketNewsData

Key Takeaways:

  • Barclays price target: $1,100 → ~14% downside from current price of $1,279.65

  • Q2 revenue estimate: $11.04B, up 15% YoY

  • EPS expected: $7.06, vs. $4.88 last year

  • Key drivers: Price increases, advertising growth, and password-sharing crackdown

Overview:

Netflix (NASDAQ:NFLX) is set to report Q2 2025 earnings on July 17, with Wall Street expecting $11.04 billion in revenue, representing a 15% year-over-year increase. Earnings per share are projected to rise to $7.06, up from $4.88 in Q2 2024.

Growth is being fueled by:

  • Subscription price hikes: Standard plan now $18/month, Premium $25/month

  • Expanding ad revenue through its new in-house ad tech platform, launched in April

  • Crackdown on password sharing, boosting new account creation

Despite this positive outlook, Barclays analyst Kannan Venkateshwar issued a $1,100 price target on July 9, signaling concern about valuation with the stock trading at $1,279.65, implying a ~14% downside.

Stock Snapshot (as of July 9, 2025):

  • Price: $1,279.65 ▲ +4.34 (+0.34%)

  • 52-week range: $587.04 – $1,341.15

  • Market cap: ~$544B

  • Volume: 3.2M shares

Key competitors: $AMZN, $DIS, $WBD

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