Netflix shares (NASDAQ: NFLX) are rallying ahead of this week’s earnings, having closed at the highest level of 2026, and comfortably recapturing the $100 mark. The market is keenly awaiting the company’s earnings report, scheduled for release on Thursday (April 16) after a 35% bounce since the WBD takeover bid was pulled.
The Street is expecting Netflix to continue posting positive numbers, with consensus EPS of $0.76 on revenue of $12.17 billion. This EPS estimate represents a year-over-year growth of approximately 15.15%, with revenue growth of 15.46%. This reflects the expectation of continued expansion of Netflix’s global subscriber base and the increasing impact of its diversified revenue streams.
Recent weeks have seen increased institutional investment in Netflix, signalling confidence in the company’s future, with prominent funds expanding their positions, contributing to the upward pressure on the stock. This institutional buying has coincided with positive assessments from various analysts.
Wedbush, Morgan Stanley, and HSBC analysts have all expressed optimism regarding Netflix’s growth prospects. A key driver of this positive outlook is the success of Netflix’s ad-supported subscription tier. The ad tier has not only attracted new subscribers but also opened up a new revenue stream, boosting overall profitability. Analysts also point to the potential for further margin expansion as the ad business scales.
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The optimism extends to Netflix’s anticipated earnings performance. Investors expect the company to meet or exceed its guidance, driven by factors such as recent price increases across various subscription plans. These price hikes are expected to contribute significantly to revenue growth in the upcoming quarter. The scaling of the advertising business is another factor fuelling earnings optimism, ably supported by Netflix’s robust content line-up, featuring a mix of original series, films, and licensed content, that continues to mark the service out as the industry leader.
Wall St Price Targets
Despite the positive outlook, some analysts are urging caution. The current stock price may already reflect the elevated expectations, creating a potential “sell the news” scenario. If the earnings report merely meets forecasts without exceeding them, some investors may choose to take profits, leading to a temporary dip in the stock price.
Netflix’s stock has traded between $75.01 and $134.12 over the past 52 weeks and currently trades above its 50-day simple moving average (SMA) of $88.73, indicating a short-term bullish trend. The earlier pullback is evident in longer term averages, with NFLX continuing to trade below its 200-day SMA of $106.89 leading in. Bulls will be eyeing a breakout above this critical level, which, if a strong print, and supportive backdrop emerge over the week could well be in the realms of possibility.
Options markets are pricing in a range for NFLX this week between $97.11 and $108.91, reflecting the volatility heading in to the print. A potential breakout could be on the cards, but dont count your chickens.
