-- Netflix (NFLX) could see stronger growth in the second half of 2026, even after a weaker-than-expected first-half performance, Wedbush Securities said in a Friday note.
Wedbush said Netflix's revenue and engagement trends remain solid, supported by expanding content, rising advertising momentum, and recent price increases, and expects ad revenue to roughly double to about $3 billion in 2026, with further upside in 2027 and beyond.
While the analysts flagged softer Q2 guidance and resistance to price increases in Europe as near-term headwinds, they said improved ad targeting, AI integration, and growing live content partnerships should support long-term growth, according to the report.
The firm also highlighted strong cash flow and continued subscriber resilience, especially in ad-supported markets, while remaining optimistic about Netflix's global expansion prospects.
Wedbush maintained its outperform rating on the stock with a price target of $118.
Shares of Netflix were down more than 9% in Friday trading.
Price: $95.57, Change: $-12.22, Percent Change: -11.34%