Goldman Sachs Lowers Netflix Price Target Amid Engagement Concerns

Goldman Sachs has adjusted its outlook on Netflix Inc., lowering its price target to $90 from $94 while keeping a Buy rating. The stock, currently trading at $67.50, has dropped 42% over the past year and is near its 52-week low of $65.08. Despite this, analysts at InvestingPro suggest Netflix remains undervalued, trading below its Fair Value.

The firm cited concerns over user growth and engagement ahead of Netflix’s third-quarter 2026 earnings report, set for October 20. Data from Sensor Tower shows a 20% year-over-year decline in U.S. time spent on Netflix and a 7% global drop. Additionally, Netflix’s share of total time spent fell from 47% to 46%, while its share of U.S. TV viewership decreased from 8.8% to 7.8% over the last twelve months.

Goldman Sachs attributed the engagement pressures to seasonality, content slate, and a shift toward international and local language titles. The firm also lowered its revenue outlook for 2027 and beyond due to these softer engagement trends. However, other analysts like TD Cowen and Deutsche Bank have maintained optimistic views, with TD Cowen setting a $100 price target and Deutsche Bank upgrading Netflix to a Buy rating.

Guggenheim has also raised its price target to $80, citing favorable valuation compared to peers like Alphabet and Meta. Meanwhile, Netflix announced a partnership with Filmin, a Spanish streaming service, to offer curated content in Spain. Analysts remain divided, but the upcoming earnings report could provide further clarity on Netflix’s future trajectory.