Guggenheim cuts Netflix stock price target to $78 on ad revenue miss
The financial firm Guggenheim has reduced its price target on Netflix Inc. (NASDAQ:NFLX) stock to $78 from $80. This adjustment comes following Netflix's third-quarter results and fourth-quarter guidance, which fell short of expectations. Netflix had forecasted a 12.2% year-over-year growth for fourth-quarter revenue, but it actually grew by 11.5%, falling below the consensus estimate.
Furthermore, the company lowered its 2026 advertising revenue forecast to about $2.7 billion from the previously estimated $3.0 billion, attributing this drop to delays in capability and integration. Currently trading at $68.69, Netflix is only slightly above its 52-week low of $65.08. Despite these setbacks, InvestingPro analysis suggests that Netflix is undervalued at the moment, with its Fair Value indicating significant upside potential.
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