Netflix Holds Near $85.85 Low as Zacks Issues Hold Rating Amid AI Rotation

As of June 5, Netflix (NFLX.OQ) trades near its $85.85 52-week low, down 7.6% over the past month while the S&P 500 rose 5.5%, carrying a Zacks Rank #3 (Hold). Coverage shifted from May 28 bear-market warnings to a maturing value narrative built on Q1 revenue growth of 16%, a raised $12.5B free-cash-flow target, and ad revenue tracking toward $3B. Valuation has compressed to roughly 28x trailing earnings versus a 60x historical average, with Wall Street analysts maintaining a bullish average rating of 1.61 even as AI-driven rotation keeps the stock depressed ahead of the June 4 shareholder meeting and July earnings.