Morgan Stanley cuts Netflix stock target to USD 80.00 from USD 83.00

Published on 10/09/2026 at 15:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Second-quarter revenue reached USD 12.56 billion, up 13.40 percent year over year. Netflix stock was EUR 62.98 on October 9, 2026 versus EUR 63.98.

Key points in brief

Morgan Stanley cut its Netflix price target from USD 83.00 to USD 80.00 on October 8, 2026, while keeping an Overweight rating.
Netflix reported second-quarter 2026 revenue of USD 12.56 billion, up 13.40 percent year over year.
The Lang & Schwarz quote was EUR 62.98 on October 9, 2026, down 1.56 percent from the EUR 63.98 prior close.
Netflix is scheduled to publish third-quarter 2026 results on October 20, 2026.

Extremes Makrofoto eines professionellen Angelmikrofons am Galgen, scharfes Mesh-Detail, verschwommene Filmcrew und Scheinwerfer im Hintergrund — Netflix US64110L1061 zeigt extremes Makrofoto eines Boom-Mikrofons vor verschwommenem Filmset-Hintergrund mit Bokeh, Illustration mit AI erstellt.

Netflix (ISIN US64110L1061) was trading at EUR 62.98 at Lang & Schwarz on October 9, 2026 at 3:00 p.m. CEST, down 1.56 percent from the EUR 63.98 prior close. On October 8, 2026, Morgan Stanley cut its Netflix price target from USD 83.00 to USD 80.00 while retaining an Overweight rating, according to Markets Insider. The change puts engagement and content execution ahead of the next earnings test.

Revenue still grows in the second quarter

Netflix reported USD 12.56 billion in revenue for the second quarter of 2026, a 13.40 percent year-over-year increase, according to Yahoo Finance. The same report said earnings per share reached USD 0.80 versus a USD 0.79 consensus estimate, while net income was USD 3.40 billion.

The operating margin was 33.40 percent in the second quarter, down from 34.10 percent a year earlier, while operating income rose to USD 4.20 billion. That combination explains the market's sensitivity to viewing hours and content spending: revenue is expanding, but incremental growth must continue to translate into earnings.

What the target cut means for valuation

Morgan Stanley analyst Sean Diffley cited stagnant viewing hours and the lack of a major English-language hit in the October 8, 2026 note, according to Markets Insider. The bank still expects double-digit revenue growth and margin expansion of 150 to 200 basis points, making the target reduction a moderation of near-term assumptions rather than a change to the rating.

Three dated Netflix developments

On July 16, 2026, Netflix reported second-quarter revenue of USD 12.56 billion and earnings per share of USD 0.80, according to Yahoo Finance. On September 8, 2026, the company announced plans to disclose box-office revenue for selected films, including two named productions, according to GuruFocus. On October 8, 2026, Morgan Stanley lowered its target from USD 83.00 to USD 80.00, according to Markets Insider.

Two dates for the earnings test

Netflix will publish third-quarter 2026 results on October 20, 2026, at approximately 1:01 p.m. Pacific Time, followed by a management video interview at 1:45 p.m. Pacific Time, according to the company's investor-relations release from September 14, 2026, available through Netflix. The report will test whether the 13.40 percent second-quarter revenue growth rate can continue alongside the 33.40 percent operating margin.

Netflix stock stays below its yearly high

The Lang & Schwarz quote stood at EUR 62.98 on October 9, 2026 at 3:00 p.m. CEST, down 1.56 percent versus the EUR 63.98 prior close. The primary listing is NASDAQ under ticker NFLX, and the USD 298.0 billion market capitalization and USD 65.08 to USD 124.86 52-week range were available as of October 8, 2026. The further course of trading is shown by the continuously updated real-time quote of Netflix stock.