Netflix’s 30% Stock Drop Presents Potential Buying Opportunity Ahead of Q4 Earnings
Netflix enters a critical juncture as it approaches its January 20 earnings report, with shares down 28-30% since October's disappointing Q3 results. Analysts project Q4 EPS of $0.55 (up 28% YoY) and revenue of $11.97 billion (up 16.7%), maintaining a Moderate Buy rating with $127.23 average price target suggesting 44.5% upside potential.
The streaming giant faces heightened scrutiny following Q3's operating margin miss (28.2% vs 31.5% expected) and a $619 million Brazilian tax settlement charge. Market focus now shifts to advertising revenue growth and 2026 guidance, with the Warner Bros. Discovery acquisition bid adding further complexity amid Paramount Skydance's competing $30/share hostile offer.