Bernstein Reduces PT on Netflix (NFLX) on Near Term Margin Concerns

Bernstein SocGen Group on April 20 kept an Outperform on Netflix (NFLX.OQ) but trimmed its price target from $115 to $110, citing near-term margin pressures from a jump in content amortization and higher tech and marketing spending to fend off competition. The cut clouds prior expectations that 2027 EPS would exceed $4, though core metrics like subscriber growth and pricing power remain intact. Consensus remains largely positive—71% of 56 analysts rate NFLX a Buy and the 12-month average price target implies roughly a 23% upside from current levels. Market impact: the note is a modest bearish signal on margins but stops short of changing the upbeat view on Netflix’s growth trajectory.