Netflix Inc. (NASDAQ:NFLX) shares are rising Tuesday. Wolfe Research raised its price target on the stock and argued that recent concerns about viewer engagement are overdone. Here’s what you need to know.
- Netflix stock is showing upward movement. Why is NFLX stock advancing?
Wolfe Research Says Engagement Concerns Are Overblown
Wolfe Research kept its Outperform rating on Netflix and lifted its price target to $95 from $84, a move that puts the new target close to 19% above where shares closed Monday.
Analyst Peter Supino said combing through millions of data points tied to how people actually watched Netflix content led the firm to a specific conclusion: the timing of new releases, not any underlying erosion in the business, best explains the softer subscriber and engagement figures from the second quarter. He said the lineup of shows and films set for the third quarter looks more promising, and that Netflix’s expanding live programming push appears to be gaining traction, CNBC reported.
That optimism follows a rockier stretch for the stock. Netflix’s second-quarter numbers, released in July, generally matched what Wall Street had penciled in, but management trimmed the top end and bottom end of its full-year revenue outlook, tightening the range to $51 billion through $51.4 billion from a previous span of $50.7 billion to $51.7 billion.
Wolfe expects Netflix’s results to strengthen in the back half of the year and anticipates the company will issue solid guidance for 2027 as it improves its content release timing and leans further into live programming.
Netflix’s Rally Still Has Overhead Supply to Clear
The stock’s bounce is showing up clearly on the chart, though it hasn’t fully escaped the weight of its longer-term slide. Netflix shares are trading 7.7% above their 20-day average of $76.25 and 10.1% above their 50-day average of $74.53, evidence that buyers have consistently stepped in over the past several weeks. But the stock still sits 0.7% below its 100-day average of $82.69 and 6.9% below its 200-day average of $88.13, exactly the zone where rallies tend to run into investors looking to sell into strength rather than chase it.
Momentum readings are supportive for now. The MACD line has moved above its signal line with a positive histogram, a combination that usually points to fading downside pressure and a rebound that’s building real momentum. Even so, the longer-term damage hasn’t fully healed: the 50-day average remains beneath the 200-day average following a death cross from December 2025, a pattern that tends to keep longer-term investors cautious until the stock proves it can reclaim those bigger trend lines.
Resistance sits at $91.50, a ceiling that roughly matches where overhead supply and the longer-term averages start to weigh on the stock. Support sits at $75, close to the 50-day average, a zone where buyers have recently shown a willingness to defend against pullbacks. Put simply, the stock is trying to shift from a pattern where rallies get sold into one where it trades within a steadier range, and near-term price action will determine how quickly that shift actually takes hold.
NFLX Shares Are Climbing
NFLX Price Action: Netflix shares were up 2.84% at $82.28 at the time of publication on Tuesday, according to Benzinga Pro.
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