Netflix Faces Downside Hurdles After Earnings, Analysts Warn of Slower Buybacks

Netflix’s latest results drew criticism centered on capital allocation and guidance. Five-star Citi analyst Jason Bazinet warned the stock could move lower after its rally due to slower share repurchases ($1.3B in Q1 vs. a 2025 average of $2.3B), unchanged 2026 revenue guidance ($50.7–$51.7B) and a weaker Q2 outlook, with a 31.5% operating margin that suggests higher costs. Pivotal Research’s Jeff Wlodarczak says the stock looks fairly valued and future growth may depend more on price increases and advertising than on subscriber gains. The departure of longtime chairman Reed Hastings adds uncertainty. Still, analysts remain bullish overall with a Strong Buy consensus and an average target of about $115.42, signaling roughly 18% upside.