On April 16, 2026, investment firm Citigroup changed its Netflix (NASDAQ: NFLX) stock rating to Market Perform from Buy. This type of rating suggests the firm believes the stock will perform in line with the general market. At the time of the downgrade, the global streaming entertainment service's stock price was $108.20.
This rating change occurs as Netflix prepares to report its first-quarter earnings. The report is significant because the company recently walked away from a deal to buy Warner Bros. Discovery. Netflix dropped its offer after a competitor, Paramount Skydance, made a better one, creating uncertainty about the company's next strategic move.
Analysts expect Netflix to report earnings per share of $0.76 on revenue of $12.18 billion, according to LSEG. These figures would represent a 15% increase in earnings and a 15.5% rise in revenue compared to the same quarter last year. Investors are now looking for a new strategic plan from the company.
While Citigroup shows caution, other analysts are more positive. KeyBanc Capital Markets recently increased its price target on Netflix to $115, pointing to momentum from pricing changes and its advertising model. As highlighted by GuruFocus, investors will also watch subscriber numbers and the performance of the ad-supported plan very closely.
The market anticipates a notable price change following the earnings announcement. Options traders are positioned for a potential 7% move in the stock's price, which is higher than its average post-earnings move of 4.7% over the last four quarters. Currently, the stock trades at $108.11, with a 52-week range between $75.01 and $134.12.
