Shares of Netflix rose 2.1% in midday trading on Tuesday after Wolfe Research upgraded the streaming giant to Outperform and lifted its price target to $95 from $84.
The stock reached an intraday high of $81.74, extending its rebound from a 52-week low of $65.08. Over the past 12 months, Netflix has declined roughly one-third, pressured by softer subscriber growth and reduced top-10 viewing hours.
Wolfe Research analyst Peter Supino cited improving viewer engagement as a key driver for the upgrade, stating the stock is "primed to move higher as viewer engagement improves." The firm also highlighted expectations for a stronger content slate and the introduction of live programming as potential tailwinds.
Netflix’s second-quarter subscriber additions were estimated at approximately 900,000, described as the weakest growth in years. The company attributed the soft metrics to content release timing rather than underlying demand.
Separately, reports indicated Netflix is exploring a model allowing users to purchase and manage subscriptions to rival streaming services, drawing comparisons to aggregator platforms operated by Amazon and Apple.
The broader market advanced modestly, with the Nasdaq Composite up 0.5% and the S&P 500 adding 0.2%. Billionaire investor Bill Ackman disclosed a new stake in Netflix earlier this month.
