Netflix (NFLX) will release its Q4 2026 earnings report on Jan. 20. The focus is on 2026 guidance, potential US price hikes, and the role of international markets in growth. Warner Bros. Discovery acquisition plans will also be key. Netflix’s stock is rated moderately overvalued with a fair value estimate of $770.

Morningstar assigns Netflix a narrow economic moat rating due to intangible assets. The company benefits from being a first mover in streaming, with no legacy assets to maintain. Financially, Netflix is in good shape with positive free cash flow. The risk rating is high due to increased competition and evolving industry landscape.

Bulls believe Netflix’s large customer base and profitability will sustain growth. They see potential in advertising-supported subscriptions and international market expansion. Bears highlight increased competition’s impact on consumer budgets, mature US market, and the need for more content spending to drive growth.

Overall, Netflix’s financial strength, potential for international growth, and strategic advantages position the company well in a competitive streaming landscape. Risks include evolving industry dynamics and increasing competition affecting subscriber growth and revenue generation. Investors await the earnings report for insights into Netflix’s future outlook.

Read more at Morningstar: Ahead of Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?