Netflix’s Price Target Slashed to $125, 2026 Revenue Seen at $51.3B, AI Acquisition
BofA cut Netflix’s price target from $149 to $125 and trimmed its multiple after forecasting 2026 revenue of $51.3 billion, up 13%, and Netflix agreed to acquire AI filmmaking firm InterPositive. Analyst Daniel Sparks predicts Netflix shares will reach $116 in five years, citing its 38.5 P/E and intensifying competition.
1. BofA Reduces Price Target to $125
In early March, Bank of America cut its Netflix price target from $149 to $125 and lowered its valuation multiple, noting a broad compression among streaming peers and the company’s withdrawal from a potential Warner Bros. Discovery bid. Despite the cut, the firm reiterated its Buy rating based on Netflix’s brand strength and global scale.
2. Upgraded 2026 Revenue Forecast
BofA’s updated model projects Netflix revenue of $51.3 billion in calendar year 2026, representing 13% growth over the prior year and aligning with the company’s guidance of 12% to 14% annual expansion. This forecast reflects continued subscriber scaling and anticipated growth drivers across new markets and advertising offerings.
3. Acquisition of InterPositive
Netflix announced the acquisition of InterPositive, a filmmaking technology startup founded by Ben Affleck, specializing in AI-powered production tools. Financial terms were undisclosed, but the deal is expected to enhance content creation efficiency and innovation within Netflix’s original programming pipeline.
4. Long-Term Outlook and Consensus Rating
Analyst Daniel Sparks projects Netflix shares at $116 in five years, highlighting its 38.5 P/E ratio and potential competitive pressure that could compress multiples despite 18% annual earnings growth. Meanwhile, consensus among 50 brokerage ratings stands at Moderate Buy, with 34 Buy, 14 Hold and 2 Strong Buy recommendations.