Benchmark Reiterates Netflix (NFLX) at Hold, Says 3Q was 'Surprisingly Pedestrian'

Benchmark analyst David Kurnos reiterated a Hold rating on Netflix (NASDAQ: NFLX).

The analyst commented, " It was a surprisingly pedestrian third quarter for Netflix (NFLX: Hold), with revenue almost spot on with consensus and operating income that would have been a nice beat if not for a material Brazilian tax impact. There were several positives, including geographic mix strength in mature markets along with record engagement levels in those same markets. However, a lot of focus fell on the relative emerging market underperformance, which was supposed to be a better growth area (we think that feels like optimistic timing given how early Netflix is in their LatAm and APAC programmatic ramp). In fact, in our preview we called out how 4Q should be the beginning of a potential turning point, albeit still very early in the process, and Netflix did not disappoint, guiding 4Q revenue $50 million ahead of our prior forecast which was already $20 million above the street. Given all of the underlying initiatives, including what sounds like a slowly ramping gaming business, new ad formats, and a host of changes that will settle in on the UI front plus adding in Amazon (AMZN: Buy) and scaling programmatic offerings, it feels like there could be an upward bias to 2026 numbers, possibly as early as the 4Q call when full-year guidance is provided."

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $1241.35 yesterday.

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